AI could unleash £119 billion in UK productivity

Workday has released data indicating that AI could boost UK enterprise productivity by £119 billion. This comes at a pivotal moment, as the country has struggled with a productivity slump for over 15 years. The report suggests the UK is on the verge of a significant economic transformation. With current productivity 24% below pre-2008 expectations, AI-driven efficiency gains offer a hopeful outlook for businesses and policymakers.

The study reveals that large UK businesses could save 7.9 billion employee hours annually through AI technologies. On an individual level, business leaders could save 1,117 hours per year (about 140 working days), and employees could reclaim 737 hours (approximately 92 working days). "Substantial productivity growth has eluded UK workplaces for over 15 years, but responsible AI can change that," said Daniel Pell, VP and Country Manager for UK&I at Workday.

This report arrives as political leaders also consider technology's role in governance. Former Prime Minister Tony Blair noted that despite economic challenges, advancements in AI make this an exciting time for leadership. However, AI adoption faces significant obstacles. The report shows 93% of employees and business leaders have trust concerns about AI, highlighting the need for responsible AI strategies, comprehensive education, and transparent communication.

Other barriers include safety, privacy, and bias concerns (38%), the need for more time to educate teams (34%), and lack of investment (32%). Additionally, unengaged employees (41%), lack of incentives (41%), and inadequate technology (35%) hinder productivity. The economic potential of AI is immense. An additional 2.9 hours of work per day could add £11,058 per year in value for each average employee. With over 10 million employees in large UK businesses, this could result in £119 billion of productive work annually.

Despite this, a productivity paradox exists. Employees and business leaders are genuinely productive for only 5.8 and 5.9 hours in an 8-hour workday, leaving over a quarter of the day unproductive. AI's promise extends beyond time savings. By handling mundane tasks, AI can enable workers to focus on more meaningful and impactful work, addressing unengaged employees—a major productivity barrier identified in the report. As UK businesses face the AI revolution, the report serves as a wake-up call and a roadmap. It recommends a two-pronged approach to AI deployment: analyzing potential efficiencies and transparently addressing adoption barriers. Realizing AI's full potential in the UK economy will require a concerted effort from businesses, policymakers, and employees. Successfully integrating AI technologies could shape the UK's economic future for years to come.