The Governor of the Bank of England has drawn a direct parallel between the impact of artificial intelligence on employment and the historic upheaval of the Industrial Revolution. While stressing the long-term economic benefits, Andrew Bailey acknowledged that widespread job 'displacement' is a near certainty, necessitating a major national focus on retraining.
AI's Economic Promise and Workforce Peril
In an interview with BBC Radio 4's Today programme, Mr Bailey sought to temper fears of mass unemployment as AI integrates deeper into society. However, he was clear that the transition would be challenging for many. "As you saw in the industrial revolution, now over time, I think we can now sort of look back and say it didn't cause mass unemployment, but it did displace people from jobs and this is important," he stated.
He applied this historical lens to the current technological shift, suggesting "My guess would be that it's most likely that AI may well have a similar effect. So we need to be prepared for that, in a sense." The Governor emphasised that the nation's economic potential from AI is 'pretty substantial', though the speed of its adoption remains uncertain.
Urgent Call for Skills and Training Focus
A central theme of Mr Bailey's warning was the critical need for workforce adaptation. He argued that securing future employment would be 'a lot easier' for individuals equipped with relevant training, education, and skills centred on AI. This preparation is seen as the key to mitigating the disruptive effects of the technology.
"We do have to think about, what is it doing to the pipeline of people? Is it changing it or not?" he questioned, adding "I think if it's people working with AI, I'm not sure it will change the pipeline, but I think we're right to have an eye on that point." His comments highlight a concern for ensuring younger workers are not sidelined by the new technological landscape.
Guarding Opportunities for Younger Workers
In his interview with the BBC, the Bank chief issued a specific caution regarding the younger generation. He warned of a tangible risk that opportunities for younger workers could be crushed if the transition is not managed effectively. This underscores the necessity for proactive policy and educational reforms to integrate AI competency from an early stage.
The overarching message from Threadneedle Street is one of cautious optimism. While AI is poised to be a powerful engine for long-term UK economic growth, its immediate impact on the labour market will mirror the disruptive, job-shifting nature of past technological revolutions, demanding significant societal preparation.
