A recent report from the Office for Budget Responsibility says up to 40 per cent of the UK workforce could be “significantly” affected by the rise of AI over the next decade. This follows comments from Nick Glynn, founder and CEO of online retailer Buy It Direct, who said he expects to cut 500 jobs over the next three years due to increased use of AI.
AI is already being rapidly adopted by retailers to perform automated tasks such as price checking, inventory monitoring, and returns processing with limited human intervention, and it is becoming clear that AI is reshaping the way we work in nearly every industry. For example, teaching staff at schools in Lancashire are currently on strike over the decision to introduce ‘virtual’ maths teachers.
Without regulation, there are growing concerns that AI will fundamentally disrupt the job market. And while AI (currently) remains largely unregulated, employers will need to conduct risk assessments and ensure that concerns around data protection, appropriate training, and AI accuracy are addressed and taken into account before implementing AI software and tools.
Successor issues
AI is predicted to have a significant impact on roles that are data-driven, repetitive, or involve tasks that can be automated. These roles have traditionally been filled by junior employees looking for experience, but replacing these roles with AI promises to significantly reduce costs and improve productivity.
A reduction in entry-level roles could lead to a shortage of senior staff with the necessary skills and experience, leading to succession issues. “Retaining and recruiting top talent” is expected to become even more competitive and costly.
education and training
Many employers are recognizing the need for workers to become “AI literate” and able to manage, use, and collaborate with AI to maximize efficiency.
AI is transforming the way we perform our jobs, potentially creating entirely new roles and reinvigorating the labor market. Organizations must invest in education and targeted training programs to meet future recruitment needs and develop a “homegrown” workforce.
Reduction and transfer of personnel
Companies may be using AI software to identify which roles and tasks may become redundant or may be affected by the AI itself. If your organization plans to reduce your workforce, you should:
- You can demonstrate that the need for staff to perform certain types of tasks is reduced as a result of AI processes or automation. and
- Following fair redundancy procedures, including conducting a thorough consultation process, applying fair selection criteria and considering redundancy alternatives.
Employers’ use of AI tools and software will transform and complement the way employees work, especially for research, data, and administrative-intensive tasks. This may not result in any movement of workers. However, there may be times when an employee’s role or job description needs to change.
Organizations should consider carefully whether changes require employee buy-in and, if so, whether to run a consultation process with employees to obtain explicit consent, or consider alternative routes and the risks involved.
AI is having a major impact on how companies hire, organize, and get work done. Employers will need to plan carefully how they will manage the impact of AI on their existing and future workforce, as Labor is implementing a number of changes to the Employment Rights Act, including the right to unfair dismissal after a six-month eligibility period and the very limited circumstances in which employers can ‘fire and rehire’ employees.
Sophia Zand is a Senior Associate in the Recruitment team at Wilsons Solicitors.
