"AI to Cause Job Losses for 8 Million Workers"

If AI Is Used Well, It Could Create 519 Trillion Won; If Not, Job Losses
"Government Must Develop AI Strategy," Voices in Unison

The UK public policy think tank IPPR has warned that up to 8 million UK workers are at risk of losing their jobs due to artificial intelligence (AI).

On the 26th (local time), Bloomberg News cited an IPPR report stating that AI currently affects 11% of workers' tasks in the UK, and if companies increase their use of AI technology, this figure could rise to nearly 60%.

[Image source=Reuters Yonhap News]

Part-time workers, new employees, and customer service roles are the most at risk, but high-paying jobs are also expected to be increasingly affected.

As companies rapidly adopt AI to improve work efficiency, the UK government announced it will invest ?800 million (approximately 1.3574 trillion KRW) in technologies including AI to enhance public sector performance.

Carsten Jung, IPPR’s Chief Economist, said, "Generative AI could either cause major disruption in the labor market or significantly boost economic growth. Either way, it will be a game changer for millions of workers." He added, "The end of employment is not inevitable. Governments, employers, and labor unions have an important opportunity to make key decisions to manage AI well. If action is not taken quickly, it may be too late."

The UK government acknowledged in a report published last November that AI is already impacting jobs in the finance and insurance sectors.

IPPR stated that as AI adoption increases, government policies will determine whether jobs decline or economic growth occurs. An analysis of AI’s potential impact on the labor market showed that in the best-case scenario, AI could bring economic benefits of up to ?306 billion annually (approximately 519.2483 trillion KRW) without job losses. AI is also predicted to lead to wage increases of up to 30%. Conversely, without policy changes, no economic benefits would occur, and 8 million jobs would disappear.

In particular, women and young people’s jobs are at high risk of being replaced by AI. Women are disproportionately employed in roles heavily affected by technology. Companies are likely to reduce entry-level jobs and introduce AI in tasks performed by new employees.

IPPR recommended that the government develop an industrial AI strategy to support job transitions and equitable distribution of benefits across the economy. This includes financial incentives to increase jobs, regulatory changes, and support for environmentally friendly jobs with low automation potential.

Janine Chamberlain, Head of LinkedIn UK, stated, "Investing in technology development within organizations has traditionally been seen as 'a good thing to do,' but with the introduction of generative AI, it has now become 'essential.'"