AI Revolution: Up to 3 million jobs may be affected in the coming decades

Technology: A report by the Tony Blair Institute (TBI) suggests that artificial intelligence is set to disrupt the job market by replacing up to 3 million jobs in the private sector over the coming decades, but its ultimate impact on unemployment rates may be less severe than anticipated. The findings suggest that each year, 60,000 to 275,000 jobs could be replaced by AI in its peak disruption phase, resulting in an overall minor impact on unemployment figures by the end of the decade.

AI, a technology that enables computers to perform tasks that require human intelligence, has taken centre stage in global discussions, especially after the rise of advanced systems such as ChatGPT. Despite initial job displacement, TBI suggests that AI will also open up new work roles, bringing displaced workers back into the job market and mitigating the effects of unemployment. The report “The Impact of AI on the Labour Market” predicts that AI-driven job losses could peak by the end of the decade, but new job creation will gradually neutralise this effect.

In addition, the implementation of AI is expected to increase the UK’s economic output, potentially adding 1% to GDP over the next five years and 6% by 2035. To adapt to this technological shift, the TBI recommends enhancing the UK’s labour market infrastructure, including developing early warning systems to identify jobs at risk and provide appropriate support.

In conclusion, while AI will inevitably replace some jobs, particularly in sectors such as administration and finance, it also promises to increase productivity, create new demand and expand economic growth through emerging job opportunities.