Impact of Artificial Intelligence in UK Job Market | AI & Accounting

Impact of Artificial Intelligence in UK Job Market

Artificial Intelligence (AI)

In theory, AI is the computer system that can think and act rationally or the computer system that can think and act humanely. This system is also widely known as Machinery Intelligence, is the imitation of human intelligence that can work and react like humans.

AI is progressing in the wide range of multidisciplinary subject that has revolutionized all the working sectors around the globe. AI is the set of systematic technology that can help people to work more efficiently in less time.

Global Impact of AI

The rising need for more attractive economy AI plays its important, yet significant role in almost every field of technical work. AI has a strong potential to contribute to the world’s economy yet AI very much influences global economic activity. The tools and techniques applied by AI in the field of business has unprecedented effects that have changed people’s way of living and working. The AI is not in the phase of infancy. Though this system was achieved a few decades ago by many nations, but there are always hindrances that hamper the rapid adoption and absorption of new technologies.

As the late-adopters find the importance of certain technology later-on, they lag behind the nations who are early-adopters as they start extracting benefit out of that technology in early stages. But still AI is something that has ability to revolutionize at any moment so of course there’s yet much more to be expected.

There are undoubtedly significant factors based on AI that catalyzes the effectiveness of work which leads towards the growth of economies, such as;

  • Labor automation
  • Innovations
  • Inventions
  • New competitions
  • Connectedness

Some certain micro-factors and macro-factors affect AI-based productivity growth. Micro-factor consists of the speed of adoption of AI and macro-factor includes the worldwide connectedness and structure and size of the market both lead towards the size of the impact.

Effect of AI in Countries

Verily, AI has the potential to increase the gaps between nations as the AI strengthens the prevailing digital-divide. Countries do need to respond to AI by reinforcing different strategies. The early-adopters of AI could increase their productivity over developing countries. According to one research, the leaders or early-adopters of AI can achieve the net economic benefit of 20 to 25 percent, whereas the developing nations might only make 5 to 15 percent of the benefit. In such scenarios, the developed nations do not have any other option than to increase their productivity growth by pushing AI to high levels. Also, the wages in these countries are mostly high for the workers, which mean there are always chances to replace humans by adding more machines. But that does not happen in under-developed countries where the wages are comparatively low.

Effect of AI on Companies

The adoption of AI by the countries do affect their productivity levels. There is always a performance gap between the nations that are leaders of AI and those who are late-adopters. To have a clear vision let's look into the spectrum; in the coming decades, the front-runners would be making double of the cash they flow now, which shows that the net cash-flow growth of the developed nations would be much higher in a year. The developed nations have a much stronger and developed tertiary sector, which includes all the services for the ease of human beings like:

  • Information Technology base
  • Stronger industrial sector
  • Higher propensity to invest
  • More business-oriented
  • Global marketing

And at the other end, the late-adopters lags in cash-flow in decades yet to come. The decline in the net cash-flow in a year would take a country years back from the early-adopters. So eventually there’s a vast gap between the distribution of benefits among the late and early adopters.

Impact of AI on UK Job Market

  • Without any doubt, AI and other smart automation have a high potential to bring economic stability and growth.
  • For the UK, growth and GDP could be reshaped as the investment in AI increases.
  • One of the research in the UK shows that the essential contributors towards the UK’s GDP gain between 2017 and 2030 will come from consumer product enhancements stretching consumer demand 8.4 percent.
  • This all is because Artificial intelligence is going to provide a greater choice of products with high affordability as time passes.
  • It is hoping that there will be remarkable achievements in all over the UK before reaching 2030. At least of 5 percent increase in GDP, which will make the UK the fastest growing economy and global corporate opportunity over time.
  • As a result, the UK will have stronger trade links within Europe and world-wide.
  • The gains which UK has achieved through investing in artificial intelligence are likely to increase trade all over the world, resulting in high market demand in the region.
  • Another recent report has shown that over two decades, one-fifth of people on working jobs were displaced by AI, which is approximately equal to the additional jobs that are being created.
  • It is also clear that with the higher impact of AI in UK job market has revolutionized the software and mechanical world, which has created a significant amount of jobs in mechanics, software and robotics

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