- AI is compared to the Industrial Revolution: jobs will change, but they will not disappear
- Those who are prepared with the right skills should see the least disruption.
- Bank of England also monitors ‘AI bubble’ fears
Bank of England Governor Andrew Bailey has compared artificial intelligence to the Industrial Revolution, suggesting that technology that helps productivity could actually force people out of certain roles.
As key as it is to Bailey’s proposal that AI would not necessarily lead to mass unemployment, we are simply in the midst of one of the biggest changes in human history.
As such, the governor highlighted the need to upskill and reskill, noting that workers with the right training, education and skills will find it “much easier” to find employment in an AI-first era.
What does AI mean for future jobs?
Bailey admitted that some workers may find it more difficult than others. Since AI is capable of handling many administrative and repetitive tasks autonomously, he warned that younger, less experienced workers may have difficulty breaking into entry-level positions, indicating that the bar for entry could be raised higher.
The BBC reported that youth unemployment in the UK is already rising, reaching 5.1% according to the most recent quarterly data. The Office for National Statistics found that unemployment among 18-24 year olds is at the highest level since November 2022, which was when ChatGPT launched in public preview and AI really started to go mainstream.
“In terms of its potential to improve productivity growth, I think it’s quite substantial,” he told BBC Radio 4’s Today program of the technology’s effects on the UK. “It will be used throughout the economy.” The Bank of England is already implementing artificial intelligence, although it is still in the experimental phase.
Separately, the Bank of England is also watching whether valuations of AI companies are at risk of a bubble similar to that of the Dotcom era. But for now, many large companies are still generating strong enough cash flow to calm these concerns.
“We’re watching it very closely, because we need to look, obviously, at what the consequences of any abrupt reduction could be,” he added.
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