Productivity levels in the UK have been almost stagnant for over 15 years. In fact, levels are 24% lower than they would have been had trends from before 2008 continued. Comparable economies – like France and Germany – are ahead, by 13% – 28%.
There’s no single cause of this productivity gap – Brexit, inflation, the pandemic and geopolitical conflict are all factors. This is because the UK’s productivity, like every nation’s, is linked to a complex web of macroeconomic conditions.
Thankfully, as the UK sets its sights on growth, there is a technology that has been creating seismic shifts in workplace productivity: artificial intelligence (AI).
AI is the game changer that UK productivity has been waiting for. Workday’s recent Productivity Gap report shows that large businesses in the UK could save up to 7.9 billion employee hours through the use of AI. Individual business leaders could save 1,117 hours if it was used to its full potential, equivalent to 140 working days annually. Meanwhile, individual employees could save 737 hours, the equivalent of 92 working days.
This dramatic increase in efficiency has the potential to transform the productivity of the UK economy. Based on average employee salaries and business sizes across the UK, put to good use, these time savings from AI could untap £119bn in productive work.
AI could unlock £119bn in productive work
Around the workplace and around the world, it is becoming increasingly clear that AI is going impact productivity and growth. Workday research shows that workers and leaders alike see the significant potential of AI. Some 91% of leaders and 73% of employees believe it will help them to accomplish more in less time while 93% and 76% respectively think AI will be able to provide them with workplace insights they could not previously obtain. In other words, workplaces are ready to welcome AI and believe that the technology will have a drastic impact on what they can achieve.
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By GlobalDataLeaders are also increasingly aware of the ways in which AI will impact their departments. For example, almost half (49%) of IT leaders think AI will help manage databases. Meanwhile, 45% say it can help improve business productivity and 44% say the same for solving employee tickets.
That is because in the IT department alone, AI promises a productivity uptick that means specialists will be freed up from laborious, mundane tasks and can instead focus on higher-priority work and strategy.
Beyond technology teams, the story is similar, with AI delivering practical benefits to day-to-day work. Finance leaders can streamline management of accounts and expenses or identify anomalous activity using AI tools, while HR leaders can use AI to rapidly identify skill gaps across their organisation at scale.
However, while the potential is clear, there are barriers blocking its adoption too – starting with trust.
To unlock productivity, trust must come first
Business leaders are primarily concerned by the safety and privacy challenges that come with AI. Those same leaders are also concerned with ensuring teams have enough time in the day to familiarise themselves with AI and crucially, whether or not their business is investing adequately. Overall, 93% of leaders and employees have at least some reservations relating to trust in AI.
The priority then is leveraging AI that is both developed responsibly and deployed transparently, so that those who are to use the technology can do so confidently. If we’re to unlock the full potential of AI and our teams, overcoming this trust barrier is essential.
Leaders can make the productivity difference
Our research shows that the best way forward for leaders who want to untap their slice of the £119bn AI promises to add to UK enterprise is to start by uniting teams. Teams must come together to learn to use AI and trust it, thereby becoming exposed to the productivity and engagement rewards it offers. It’s up to leaders to promote transparency to the whole organisation on where and how AI will be used. And finally, leaders need to invest in skills and platforms that drive the next generation of workplace efficiency.
Such a shift toward AI can feel intimidating. But small steps can make a big difference. Leaders should start by identifying specific use cases in specific departments – like IT, HR or finance. Then, they should work up guidelines and a clear policy, and begin rolling out AI gradually to those targeted areas. Those first steps are the toughest, but they’ll also start showcasing the benefits of AI to teams and the business. From there the momentum will build naturally.
The UK is grappling with a considerable productivity gap. To keep up, every leader has a role to play in boosting the performance of our teams, our businesses, and our economy. The organisations that embrace AI, with responsibility and patience as guiding principles, are the ones that will do this most effectively – and reap the rewards of a more productive workplace in the process
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