Workday has released data indicating that AI could bring about a £119 billion increase in productivity for UK businesses. This news arrives at a critical juncture, with the country facing a productivity decline that has persisted for more than fifteen years.
The findings present a scenario of a nation on the verge of a significant transformation in its economic landscape. With current productivity levels trailing 24% below pre-2008 forecasts, the potential for efficiency gains driven by AI offers a ray of hope for both businesses and policymakers.
As per the report, large enterprises in the UK could save an astounding 7.9 billion hours of employee work annually through the strategic utilization of AI technologies.
Breaking it down to an individual level, the statistics are equally remarkable. Business leaders could reclaim 1,117 hours per year – equivalent to 140 working days – while individual employees could gain back 737 hours, or 92 working days.
“Substantial productivity growth has eluded workplaces in the UK for over 15 years – but responsible AI has the potential to change the game,” stated Daniel Pell, VP and country manager for UK&I at Workday.
The report’s revelations come at a time when political figures are also considering the role of technology in governance.
Former Labour Prime Minister Tony Blair recently remarked that despite economic challenges, advancements in technologies like AI mean there has “never been a better or more exciting time to be governing.”
Despite the positive outlook, the journey to AI adoption is not without challenges. The report highlights that 93% of employees and business leaders have concerns regarding trust in AI. This underscores the importance of responsible AI strategies, thorough education, and transparent communication initiatives.
Other obstacles to AI adoption include worries about safety, privacy, and bias (38%), the necessity for more time to educate teams (34%), and lack of investment (32%). Additionally, the report identified disengaged employees (41%), lack of incentives (41%), and inadequate technology (35%) as key factors hindering organizational productivity.
The potential economic impact of AI is immense. Based on the report’s findings, an additional 2.9 hours of work per day translates to £11,058 a year of added value for each average employee. With over 10 million employees in large UK businesses, the cumulative effect could reach £119 billion worth of productive work annually.
However, the report also exposes a productivity paradox in the current workplace. In an 8-hour workday, employees and business leaders are genuinely productive for only 5.8 and 5.9 hours respectively—leaving over a quarter of the day unproductive.
The promise of AI goes beyond time savings. By handling mundane and repetitive tasks, AI has the potential to empower workers to focus on more meaningful and impactful work. This shift could address one of the largest barriers to productivity identified in the report: disengaged employees.
As UK businesses stand at the crossroads of this AI revolution, the report acts as both a wake-up call and a roadmap. It proposes a dual approach to AI deployment: a detailed analysis of potential efficiencies paired with a transparent strategy to address adoption barriers.
Realizing the full potential of AI in the UK economy will require a collaborative effort from businesses, policymakers, and employees. The successful integration of AI technologies could significantly influence the UK’s economic trajectory for years to come.
A full copy of Workday’s report can be accessed here (registration required)
(Photo by Belinda Fewings)
See also: Tech executives confident in AI skills, but adoption barriers persist
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