AI can jump-start UK productivity – we just need to get over our trust issues
Artificial intelligence can be the productivity cure it promises to be – but we need a little trust, writes Daniel Pell
The UK has a productivity problem. The latest productivity flash from the ONS confirms our near stagnation with outputs per hour growth hovering around the zero-to-one percent mark – and that’s after accounting for the heroic growth efforts of our manufacturing sector.
We can all rattle off the reasons behind this: high inflation, war in Europe, Covid, Brexit. Some argue it goes all the way back to 2008 and the spending measures introduced thereafter. Whatever the reasoning, the fact remains that we’re lagging behind our counterparts. Take the US, France and even Germany, who are grappling with recession. Their productivity still ranks markedly higher than ours.
Yet I remain a staunch believer in UK business. While productivity has struggled, overall GDP growth has been strong. We have vision, we strive to achieve, we are a diverse and innovative country full of new ideas and ambition – we just need a bit of a jump-start.
Investment (and by investment I mean reinvestment) remains one of the biggest hurdles. With poor growth comes little surplus to spend on improvements, drive new efficiencies and improve working environments. Many are just trying to keep the wheels turning. That’s why the Bank of England’s recent rate cut to five per cent may provide some much needed breathing room, at least to the larger employers of this nation.
But how best to use these new savings and other tools at our disposal to bolster productivity?
Untapping the AI opportunity
While businesses have been grappling with the hype – and in some cases fear – around artificial intelligence (AI) in recent years, its ability to boost productivity is becoming clearer. Our recent research found up to £119bn-worth of productive work each year could be untapped across large UK enterprises annually by AI. The companies surveyed account for two-fifths (39 per cent) of private sector employment and almost half (47 per cent) of its turnover at £2.1 trillion.
The numbers are compelling. The same analysis found the equivalent of £11,000 a year of additional work produced by each employee, achieved through average time savings of 2.9 hours a day. Further, just one per cent of business leaders who have widely deployed AI report falling short of their growth targets, compared to 16 per cent of those with limited AI deployment. Positively, the government recognises the huge improvements AI can bring about, hence its recent AI Action Plan launch.
We know this technology can work, if used in the right way. We now have a bit of financial headroom. Next, we must break down barriers to adoption, and that starts with trust.
Bolstering trust in AI
Trust in AI is complex. It spans typical areas like privacy, security and challenges of inherent bias through to fears of job obsoletion. It’s an important prerequisite as we travel down this road. Only with transparent tools, developed responsibly and retaining human mediation or oversight, will we see those objections wane. This will be key if we’re to successfully use AI to help boost our productivity in the way our organisations and economy need.
Upskilling and education will also play a huge role here. Again, the government recognises this with its Skills England Bill. With it they aim to establish a new national approach to skills provision, targeted towards high value skills that drive economic growth. Here, too, AI has a role to play.
With the right AI platforms, we can gather and put to work data on existing skill gaps at scale. The insights provided will help us strategically target workforce upskilling to the valuable skills that businesses need and which underpin flourishing careers. This AI-enabled approach, combined with intelligent job role assignment capabilities, is already being used by forward-thinking enterprises around the country.
The challenges are clear, but I’m optimistic about UK productivity. Our economy, and our businesses, are well placed to lead in AI adoption. May it prove to be the productivity jump-start we need.
Daniel Pell is the vice president and country manager UKI at Workday