AI cuts more jobs in the UK than it creates

New research indicates that artificial intelligence has contributed to a net loss of jobs, down 8% in the past 12 months. The study also shows that this is the highest rate among other major economies such as Japan, Germany, Australia and the United States.

The research from investment bank Morgan Stanley studied companies who used AI in the past year across five industries: consumer retail, real estate, transport, healthcare equipment, and cars.

The study found that British businesses had an average of 11.5% increase in productivity because of artificial intelligence. However it also found that AI resulted in a net loss of jobs overall. The UK has seen 8% net job losses over the past twelve months, which is higher than Australia, Germany, Japan or America, and twice the international average.

The UK appear to be being hit hardest by the effects of artificial intelligence on jobs. Data for the United States reveals that AI has created more jobs than were lost because of the technology. This comes as the UK unemployment rate is at a four-year high and more than a quarter of Britons say they are worried about losing their jobs to AI.

Morgan Stanley’s analysis found that “mid-career professionals,” those with five to ten years experience, are most likely to be affected by AI job losses. However, they are also the most likely to be hired and retrained as well.

Mayor of London, Sadiq Khan, warned about the effects of artificial intelligence in his annual Mansion House speech earlier this month. He said, “Seize the potential of AI and use it as a superpower for positive transformation and creation or surrender to it and sit back and watch as it becomes a weapon of mass destruction of jobs.”

Morgan Stanley’s research concludes that their figures “likely represent the most significant downside case” for the impact on jobs. “Even so,” they continue, “we believe this provides an early warning regarding the potential negative employment effects as AI technology continues to improve”.