AI technologies have been expanding rapidly, promising increased productivity and economic growth. However, a newly published report suggests that while expectations are high, governments must take action to address concerns raised by employees about adaptability and the risk that some sections of society could be left behind.
According to a recent report from the Institute for the Future of Work, rapid automation rates in the UK threaten to increase inequalities unless the government takes proactive steps. Drawing on insights from over 5,000 employees and 1,000 companies in the UK, the report looked beyond the financial factors and analyzed whether individuals felt they had control over their careers and professional growth. To do this, the researchers measured capabilities across key domains such as stability, autonomy, attachment, achievement and enjoyment.
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The findings highlight a significant divide between employees in the UK based on their ethnicity, age, industrial sector, occupational level, and relationship status. Employees in leadership positions in older age often confirmed they have a high level of confidence in their capability, while, for instance, individuals from underrepresented backgrounds or employees of Asian descent reported lower confidence. Workers in industries such as agriculture, transport, and energy appear to struggle the most with automation, suggesting that some sectors need training and support to help employees to adjust to these changes.
How businesses introduce automation plays a critical role in shaping workers’ experiences. Companies that provide structured training programs, transparent communication and clear pathways for professional development tend to have employees who feel more secure in the face of technological change. In contrast, organizations that fail to implement these strategies often see increased uncertainty among their workforce, with employees expressing greater anxiety over the future of their jobs.
Although major corporations have put in place measures to support their workforce to adapt to automation, smaller businesses often struggle to keep up. The study suggests that without meaningful intervention, shifts in job roles and potential workforce displacement could put pressure on local economies and disrupt social stability.
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Nobel Laureate, Christopher Pissarides, who led the study, explained that governments need to ask questions such as “How can AI bring productivity and prosperity, without putting people under more intense stress and pressure? How can it help us to identify and deliver new opportunities without exacerbating growing divides across the country?”
To prevent automation from deepening workforce inequalities, the report suggests a range of recommendations. These include modernising labor laws to reflect the realities of today’s job market, expanding employer-led training programs to equip workers with skills for an AI-driven economy, and introducing incentives for companies that prioritise job security and career development. Strengthening worker representation is also highlighted as being a key step to ensure that employees have a voice in how automation is implemented in their workplace.
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Despite widespread concerns, the study suggests that automation does not necessarily have to lead to job insecurity if businesses and policymakers take proactive steps. Companies that effectively adopt AI while prioritising workforce investment tend to see stronger long-term results.
