Financial, professional and technical services will be the first affected by a wave of automation set to sweep the UK in the early 2020s, with 6-8% of jobs impacted.
This will be largely thanks to algorithms automating data analysis and simple digital tasks, such as credit scoring, with the information and communication sectors also set to be affected.
That is according to new research from PricewaterhouseCoopers (PwC), which suggests women will also be first to feel the impact of technology on jobs due to the current gender profile of the labour market.
“Our research shows that the impact from automation and artificial intelligence (AI) will be felt in waves, with more routine and data tasks hit first,” PwC UK AI leader, Euan Cameron, said.
“AI technology is getting more sophisticated every day, and businesses that understand the risks and opportunities can start upskilling their people and adapting, rather than simply reacting when it’s too late.”
A second ‘augmentation wave’ is expected to hit Britain in the late 2020s, which will impact repeatable tasks and exchanging information, with aerial drones, robots in warehouses and semi-autonomous vehicles set to become more prevalent.
This will be followed by an ‘autonomy wave’ by the mid 2030s, when AI will be able to analyse data from multiple sources, make decisions and take physical actions with little or no human input.
By this time it is predicted that up 30% of jobs could be impacted by automation, with robots and driverless vehicles expected to be rolled out more widely across the economy.
This is when sectors like transport, manufacturing and retail will be pushed to the top of the likely automation list, with men most likely to feel the impact of technology on jobs.
However, PwC said that new technologies will boost productivity, income and wealth, and that economic modelling suggests job creation will broadly offset the losses associated with automation in the long run.
“We don’t believe that automation will lead to mass technological unemployment by the 2030s, any more than it has done in the decades since the digital revolution began,” PwC chief economist, John Hawksworth, said.
“But we should not be complacent about the coming waves of automation: there will be challenges to many workers to adapt to these changes through enhancing their skills and retraining for new careers in some cases.”
Nearly two-thirds of large businesses with over 10,000 staff are looking to deploy new blockchain projects, up from around half last year, a new survey has found.
18 September 2018
InsurTech is expected to help generate over $400bn (£312bn) worth of premiums worldwide by 2023, more than double the estimated $187bn today.
21 August 2018
CEOS from across the world believe that data scientists will be their most important workers in the search for future growth, a new global survey has found.
13 August 2018
Why InsurTech? A Pressured Insurance Value Chain
By Andrew Sagon, Andrew Johnston and Matthew Wong
InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.
Nimbleness and agility will unlock potential
By Elinor Friedman, Andrew Harley and Klayton Southwood
Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.
Driven by technology, toolkits and talent
By Claudine Modlin and Graham Wright
Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.
Risk transfer is part of a comprehensive solution
By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood
Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.