Britain's #jobs Being Destroyed Due to AI, Morgan Stanley Report
According to new research by Morgan Stanley, job losses in Britain due to AI adoption are happening at a faster pace compared to other major countries. British companies cut a net 8% of jobs last year because of AI, which is double that of Germany, America, Japan, and Australia.
Productivity Increased, But Jobs Were Lost
The productivity of UK companies using AI increased by 11.5%, but despite this, they reduced jobs. In America, productivity increased by the same amount, but there was an increase in jobs there.
In the UK, job openings, particularly for roles like software developers and consultants, have fallen by 37% — since 2022 when #chatgpt arrived — while openings for other jobs decreased by 26%.
Greater Impact on Young People
Youth unemployment has reached 13.7%, the highest level since 2020. AI is eliminating entry-level office jobs, and companies are cutting positions that require 2-5 years of experience.
The Bank of England says that AI is a "general purpose technology" that will broadly transform things, but we must also be prepared for job losses alongside it.
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