Is AI revolutionising the workplace? Not yet, UK survey shows
10 July 2023
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A new survey reveals the UK is lagging behind in adopting AI-enabled digital technologies, posing risks of a growing digital divide among businesses, as only 10 percent plan to invest in the next two years.
Only 36 percent of UK employers have invested in AI-enabled technologies like industrial robots, chatbots, smart assistants and cloud computing over the past five years, according to a nationally representative survey from the Digital Futures at Work Research Centre (Digit). The survey was carried out between November 2021 and June 2022, with a second wave now underway.
Academics at the University of Leeds, with colleagues at the Universities of Sussex and Cambridge, led the research, finding that just 10 percent of employers who hadn’t already invested in AI-enabled technologies were planning to invest in the next two years.
The new data also points to a growing skills problem. Less than 10 percent of employers anticipated a need to invest in digital skills training in the coming years, despite 75 percent finding it difficult to recruit people with the right skills.
Almost 60 percent of employers reported that none of their employees had received formal digital skills training in the past year.
Lead researcher Professor Mark Stuart, Pro Dean for Research and Innovation at Leeds University Business School, said: "A mix of hope, speculation and hype is fuelling a runaway narrative that the adoption of new AI-enabled digital technologies will rapidly transform the UK’s labour market, boosting productivity and growth.
“These hopes are often accompanied by fears about the consequences for jobs and even of existential risk.
"However, our findings suggest there is a need to focus on a different policy challenge. The workplace AI revolution is not happening quite yet.
“Policymakers will need to address both low employer investment in digital technologies and low investment in digital skills, if the UK economy is to realise the potential benefits of digital transformation."
Mary Towers, Future of Work and AI Lead at the Trades Union Congress (TUC), said: “This report is much-needed. It is really important that workers and unions are consulted over the use of [the] next technology at work – rather than it being imposed.
“This will help build trust and help stop staff from being at risk of exploitation. New forms of worker tech – like AI – are now making life-changing decisions over hiring, firing and performance management.
“In addition to employers acting with transparency, we urgently need to beef up our regulatory framework. UK employment law is simply not keeping pace with developments in AI and other new forms of technology. This is leaving many vulnerable.”
The main reasons for investing were improving efficiency, productivity and product and service quality, according to the survey. On the other hand, the key reasons for non-investment were AI being irrelevant to the business activity, wider business risks and the nature of skills demanded.
There was little evidence in this survey to suggest that investing in AI-enabled technology leads to job losses. In fact, digital adopters were more likely to have increased their employment in the five-year period before the survey.
As policymakers race to keep up with new developments in technology, the researchers are now urging politicians to focus on the facts of AI in the workplace.
Peter Cheese, Chief Executive of the Chartered Institute of Professional Development (CIPD), said: “The investment in and adoption of rapidly advancing digital technologies in all forms will impact every organisation’s competitiveness and longer-term survival.
“This important report, based on a first national survey, should act as a wakeup call to policymakers and all business leaders and stakeholders. There is evidence of clear divides emerging between companies and even sectors who are digital adaptors, and those who are not.
“Furthermore, the longstanding challenge in the UK of under-investment in skills shows through, risking not just the ability of organisations to respond to changes, but also the concern of people being left behind. Now is the time to act.
“To engage across organisations, to experiment and innovate, and to think strategically and responsibly about the opportunities, and threats, from this digital revolution.”
The Employers’ Digital Practices at Work Survey is a key output of the Digital Futures at Work Research Centre, which is funded by the Economic and Social Research Council (ESRC) and co-led by the Universities of Sussex and Leeds Business Schools. The First Findings report is available on the Digit website.