Generative AI could add £31bn to UK economy – report

Generative AI systems such as those powering advanced chatbot ChatGPT could provide a £31bn boost to the UK economy, according to a report.

Generative AI, a subset of artificial intelligence that creates new content based on prompts, is estimated to have the capability to do 2.5% of all tasks, with those productivity improvements equivalent to a 1.2% boost to Britain’s GDP.

At 2022 GDP levels, this would be equivalent to an additional output of £31bn.

However, the report, published by professional services firm KPMG, suggests that generative AI could affect 40% of all jobs in some way.

Yael Selfin, chief economist at KPMG UK, said: “While we do not anticipate many job losses as a result, changes to work practices of some occupations could still lead to short-term skill mismatches, as the labour market adjusts to the new technology.”

“Additional support will be needed to facilitate the transition of affected workers to new occupations.”

One in 10 jobs face the most significant impact from generative AI, while 60% “could face little to no direct effect”.

Tasks performed by authors, writers and translators are expected to be the most at risk to automation by generative AI (43%). This is followed by programmers and those working in software development at 26%.

“While there are concerns about the impact of generative AI on jobs, it will likely be used as an enabler of our strategies and processes,” said Paul Henninger, head of connected technology at KPMG UK. “Roles will change to work with the technology.”

Read more: UKTN’s Guide to Generative AI