Minister plays down job losses as Chancellor prepares to commit to AI drive
By Rachel Reeves Adopting AI will not “generally” lead to job losses, a Treasury secretary has said, as the UK prepares to pledge to accelerate the adoption of the technology.
The Chancellor is expected to promise the UK “the fastest adoption of AI in the G7” when he delivers the annual Mais conference in London on Tuesday.
Arguing that Britain “cannot stand still” in a world “defined by technological change”, he will warn that the country can either “bury our heads in the sand” or “chart our own course” when it comes to artificial intelligence.
It is expected to back this ambition with a £500 million “government AI fund” to be launched in April and a £1 billion program to supply advanced quantum computers.
Sir Keir Starmer has previously spoken of artificial intelligence as a driver of economic growth and a key part of Britain’s economic future.
However, the adoption of technology has raised concerns that it could lead to major job losses, especially among graduates and those working in white-collar positions.
Ahead of Ms Reeves’ conference, Treasury Secretary Dan Tomlinson sought to downplay the prospect of job losses, pointing to official forecasts that suggest the total number of jobs in the economy will rise over the next five years.
He told Sky News that “major shocks” in economic history, such as the industrial revolution, have seen “changes in the amount of jobs happening in the economy or the types of jobs we have”, but added: “You don’t see job losses across the board.”
Warning against attempts to “escape” new technologies, Mr Tomlinson said it was important to embrace AI to prevent the benefits from “flowing to other countries”.
He said: “And that means there are more opportunities, because if AI means that a particular company can hire six or seven people instead of hiring 10 people, it means three people who would otherwise be hired have new opportunities.”
Ms Reeves’ speech comes at a time when the UK economy continues to face challenges; Official figures showed that the economy failed to grow in January, even before the rise in oil prices caused by the war in Iran.
Accelerating the adoption of AI is one of three “big options” the Chancellor is expected to outline on Tuesday, along with closer ties with the EU and “growth across Britain”.
The Conservative Party accused the Chancellor of mismanaging the economy and said his determination to forge closer ties with Brussels signaled Labour’s desire to roll back Brexit, which the Government has rejected.
Shadow chancellor Sir Mel Stride said: “Under mounting pressure over his mismanagement of the economy, Reeves would rather point the finger at Brexit than admit his poor choices have been a disaster for our economy.”
