- AI is compared to the industrial revolution – jobs will change but not disappear
- Those prepared with the right skills should see minimal disruption
- Bank of England also keeps an eye on ‘AI bubble’ fears
Bank of England Governor Andrew Bailey has compared artificial intelligence to the industrial revolution, suggesting the productivity-enhancing technology could actually force people out of certain roles.
Although the key to Bailey’s proposition is that artificial intelligence would not necessarily lead to mass unemployment, we are right in the middle of one of the biggest shifts in human history.
As such, the governor highlighted the need for upskilling and retraining, noting that workers with the right education, training 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. With AI able to handle many repetitive and administrative tasks autonomously, he warned that younger and less experienced workers may struggle to gain entry-level roles, indicating that the bar for entry may be moving higher.
The BBC reported that UK youth unemployment is already rising, at 5.1% according to the latest quarterly data. The Office for National Statistics found that unemployment among 18-24-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 its potential to improve productivity growth, I think it’s quite significant,” he said on BBC Radio 4’s Today program about the technology’s impact on Britain. “It will be used across the economy.” The Bank of England is already implementing artificial intelligence, but it is still in an experimental phase.
Separately, the Bank of England is also keeping an eye on whether valuations of AI firms risk a Dotcom-era bubble. But for now, many large companies are still generating strong enough cash flow to ease those concerns.
“We are following it very closely, because of course we have to see what the consequences of any sharp unwinding might be,” he added.
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