KPMG: Generative AI could spur £31bn increase in UK productivity
The UK’s battered economy could get a much-needed £31bn boost from the widespread adoption of generative AI, a new KPMG report has found.
According to the ‘Big Four’ firm, generative AI has the potential to increase UK productivity by 1.2 per cent, the equivalent of an extra output of £31bn a year in the UK economy.
Yael Selfin, chief economist at KPMG UK, said generative AI could carry out “on average, around 2.5 per cent of tasks across various occupations in the UK”, meaning workers will have more time to focus on other activities.
The report also discovered four in 10 jobs can expect some impact from generative AI. However, only 10 per cent of occupations will face “significant impact”, with over five per cent of their work affected.
Selfin said generative AI is not going to steal “many” jobs but it could present several transition challenges. Changes in working practices of some jobs could cause “short-term skill mismatches” as people adjust to the new technology.
Generative AI technology will primarily affect creative roles like authors, translators, graphic designers, along with IT support technicians and legal professionals, due to its text-based and visual nature, making a significant portion of their tasks susceptible to automation.
Occupations expected to experience minimal impact from generative AI include those industries such as retail, customer services, hospitality, construction and manufacturing.
Head of connected technology at KPMG UK, Paul Henninger, said generative AI benefits will be “huge” and will “accelerate” work, saving businesses time and money.
“While there are concerns about the impact of generative AI on jobs”, he said, “it will likely be used as an enabler of our strategies and processes. Roles will change to work with the technology”.
KPMG’s report recognises the need for a “high degree of caution” from regulators and policymakers due to the potential for “highly uncertain” wider social and economic implications of generative AI, given its importance for the economy.