The British economy could experience an £80bn boost in productivity by 2035 through the smart application of artificial intelligence (AI), according to a new report by the think tank Learning & Work Institute and the Rigby Foundation.
However, a significant obstacle to realising this potential is a growing AI skills gap within the UK workforce. While 85% of businesses are currently using AI in some capacity, only 18% of UK employers deploy the technology extensively.
This extensive adoption varies by business size, with 25% of large firms using AI extensively compared to 13% of small businesses. The report suggests that rapid technological upskilling is necessary to unlock these potential economic gains.
Over the last two decades, employer funding for individual workforce training has dropped by over a third. To address this, businesses are urged to modernise their internal capabilities, while the government is called upon to reform technical education and incentivise skills investment.