- AI compared to the industrial revolution: jobs will change, but not disappear
- Those who are prepared and have the right skills should experience as little disruption as possible.
- Bank of England also monitoring fears of ‘AI bubble’
Bank of England Governor Andrew Bailey has compared artificial intelligence to the industrial revolution, suggesting that the productivity-enhancing technology could indeed force people to abandon certain roles.
However, Bailey’s proposition is that AI would not necessarily lead to mass unemployment. We are right in the middle of one of the greatest changes in human history.
As such, the governor emphasized the need for upskilling and reskilling, noting that workers with the right training, education and skills will find it “much easier” to find employment in the AI era.
What does AI mean for the jobs of tomorrow?
Bailey admitted that some workers may find it more difficult than others. With AI capable of autonomously handling many repetitive and administrative tasks, he warned that younger, less experienced workers may struggle to advance to entry-level positions, indicating that the bar for entry could be higher.
The BBC reported that youth unemployment in the UK is already rising, at 5.1% according to the most recent quarterly data. The Office for National Statistics found that unemployment among 18 to 24-year-olds is at its highest level since November 2022, when ChatGPT launched in public preview and AI really started to go mainstream.
“In terms of the potential for improving productivity growth, I think it’s quite substantial,” he told BBC Radio 4’s Today program about the effects of technology on the UK. “This will be used throughout the economy.” The Bank of England is already implementing artificial intelligence, but it is still in its experimental phase.
Separately, the Bank of England is also monitoring whether AI company valuations are at risk of a bubble similar to that of the Dotcom era. But for now, many large companies are still generating cash flow strong enough to assuage those concerns.
“We are monitoring this very closely, because we obviously have to monitor what the consequences could be of a sudden outcome,” he added.
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