AI set to unlock £31bn increase in UK productivity according to KPMG

The UK economy could secure a £31bn boost from the widespread adoption of generative Aim according to new research from KPMG.

The UK’s struggling economy could benefit from a much-needed £31bn boost from the widespread adoption of generative AI, says the report. According to the ‘Big Four’ firm, generative AI is set to increase UK productivity by 1.2 per cent, the equivalent of an extra output of £31bn a year in the UK economy.

Yael Selfin, chief economist at KPMG UK, said generative AI could carry out “on average, around 2.5 per cent of tasks across various occupations in the UK”, freeing up workers will have more time to focus on other activities.

The report also discovered four in 10 jobs can expect some impact from generative AI. However, only 10 per cent of occupations will face significant impact, with over five per cent of their work affected.

Selfin said generative AI is not going to steal many jobs but it could present several transition challenges. Changes in working practices of some jobs could cause short-term skill mismatches as people adjust to the new technology.

Responding to the report, Chris Downie, CEO of Pasabi, commented: “AI is a fantastic tool, but one which will continue to be exploited by cyber criminals and online fraudsters to scam and deceive their victims. With the technology now playing a major role in the creation of fake reviews, a practice which directly influenced almost £4bn of online spending last year, stamping out the misuse of AI should be a top priority.

“The government is on the right track with its AI taskforce and its calls for international collaboration around regulation, but so much more needs to be done. Businesses and review platforms also need to take proactive steps to protect customers from false information and the rising tide of online scams that do so much damage to consumer trust and the economy.”

Meanwhile, Steven Mooney CEO of FundMyPitch said, “The growth potential of AI is enormous, yet far too many companies find themselves struggling to attract the support and investment they need to take their business to the next level.

“We already know that AI has the power to transform the NHS, boost productivity and improve public services, so it’s time to start giving AI startups the opportunity to secure a credible valuation and market themselves to key investors.

Mooney continued, “The fact remains that AI is here to stay, we can either fight against it or embrace it. Getting ahead of AI means giving entrepreneurs with bright ideas the financial backing they need to hire talent, develop their offering accelerate the productivity of UK PLC.”

By Mark Adair – Correspondent, Bdaily

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