A new era of work is dawning on Britain, driven by the relentless march of artificial intelligence. As companies strive for greater efficiency and cost savings, a growing number are turning to AI-driven gig economies – where workers enjoy no job security, few benefits, and uncertain pay.
The trend has already begun in industries as diverse as customer service and white-collar roles. Klarna, the buy-now-pay-later specialist, is a prime example: having shed hundreds of full-time customer service jobs in favour of AI-powered chatbots, it's now recruiting gig workers to handle more complex queries – sparking concerns that these precarious jobs will become the norm.
ONS labour market data reveals that the number of self-employed individuals has risen steadily over recent years, reaching 4.8 million by the end of 2022 – a trend driven in part by the growth of the gig economy. But as Mary Gray, a senior principal researcher at Microsoft Research, notes: 'While there's no evidence that jobs disappear altogether, there is plenty to suggest that companies will outsource tasks to technology whenever possible – and reap the cost savings.'
As AI becomes increasingly pervasive, experts warn that this shift will affect industries once thought safe from its impact. 'We're on the cusp of a transformation that will touch every sector,' says Alexandrea Ravenelle, a sociologist at the University of North Carolina at Chapel Hill – and one that will have far-reaching consequences for household finances, wages, and mortgage affordability.