UK draws up contingency plan for ‘unprecedented’ AI job losses
Britain is preparing for the possibility of “unprecedented” AI-driven job losses, the AI minister has said, as companies increasingly cut staff and automate parts of their workforce. Kanishka Narayan said one of his top priorities was drawing up a contingency plan for a severe disruption to the jobs market, which could include changes to labour [...]
The UK government is formulating a contingency plan to counter potential "unprecedented" job losses resulting from artificial intelligence, according to AI Minister Kanishka Narayan. Speaking at a Labour conference event, Narayan emphasized the need to be "ahead of the curve" if AI causes significant disruption to the jobs market.
While there is currently no evidence of a nationwide employment decline caused by AI, the minister stressed the importance of taking the potential impact seriously. An unnamed tech company has informed the minister that some job cuts are due to automation, raising concerns that official unemployment figures may be underestimating the true impact.
In July, the UK's unemployment rate stood at 4.9%, and the number of payroll employees fell by 101,000 over the past year. The Institute for Public Policy Research (IPPR) warns that a worst-case scenario could see eight million UK jobs affected, with administrative roles among the most vulnerable to AI-driven automation. Narayan acknowledged the need for better transparency when AI is adopted, as firms may reduce staff through productivity gains rather than announcing layoffs.
The government is considering adjustments to labour market policy and regulation as part of its contingency plan.
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