Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Monday 20 August 2018 11:18 am  |  Updated:  Friday 24 May 2019 7:47 pm

AI could lead to mass unemployment, warns Bank of England

By: Joe Curtis

Add as a preferred source on Google

Widespread reskilling is essential to avert a future in which AI creates long-term unemployment, the Bank of England’s chief economist warned on Monday.

Andy Haldane predicted that machine automation will lead to a “hollowing out” of the jobs market “on a much greater scale in the future” than during the revolutions of coal, electricity and computing due to AI’s ability to replace both low-skilled roles and some more complex jobs.

“What we can say with some confidence, however, is given the scale of jobs lost is likely to be at least as large as the three industrial revolutions [before] we’ll need even greater numbers of new jobs to be created in the future if we are not to suffer this longer term feature called technological unemployment,” Haldane told Radio 4’s Today programme.

He said governments must try to reskill those who lose their jobs to AI or provide “access to money, or to loans, or to healthcare, or to housing”.

Unemployment is now at a four-decade low of four per cent, but Haldane’s comments come amid increasing excitement around automation, with the rise of AI and other technologies dubbed ‘The Fourth Industrial Revolution’.

Artificial intelligence promises to cut costs and increase speed and accuracy by replacing involving data input, data analysis, while others like telemarketing and credit analysts are also at risk, according to the University of Oxford.

And while AI will create 7.2 million jobs over the next 20 years, it will also replace another seven million, according to PwC research released over summer.

Haldane said AI could replace as much as 50 per cent of jobs, with social care, healthcare and leisure the least affected industries, but said the net new number it creates is much harder to estimate.

But he added that while AI will play an increasing part in decision-making even at the top level, human creativity will still be required.

“In complex decision environments like a central bank, whether it’s setting interest rates or financial regulation or whatever, it’s a good thing to be combining the very best data,” he said.

“However, there will still be, I think, an important role for human judgement.”

The government has set up an Office for Artificial Intelligence to push the UK to the forefront of AI development. DeepMind co-founder Demis Hassabis will advise the office, while a newly-established AI Council has been tasked with increasing the use of AI among businesses.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Tech

Trending Articles

  • Burnham tax plans spark investor rush to bank capital gains

  • Brewdog chief executive quits after only one year

  • Housebuilding giants hit with £4.5bn lawsuit for allegedly overcharging buyers

  • UK ‘no longer a serious place’ says Hedge fund boss after losing £200m tax battle

  • Canary Wharf’s reinvention is a triumph

More from City PM

  • Burnham adviser floats higher tax on pension funds’ overseas investments

    Economics
    Andy Haldane speaking at a business conference, gesturing with hands, wearing a suit and tie, addressing economic issues.
  • From stamp duty to the triple lock, Andy Haldane says bold Burnham leadership can usher ‘vibe change’ for UK economy

    Politics
    Andy Haldane, economic adviser, with Andy Burnham discussing economic strategies in a formal meeting setting
  • Burnham turns to ex-OBR and Bank of England chiefs on economic policy

    Politics
    British Chambers President Andy Haldane speaking at a business conference, addressing economic growth and industry challen...
  • British American Tobacco rolls out plan for thousands of job cuts in AI streamlining

    Business
    Imperial Brands vape products displayed with declining cigarette sales chart in a business news context
  • Jobs crisis: UK unemployment to hit highest level in a decade

    Business
    London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...
  • Job vacancies fall again in unemployment risk 

    Economics
    People waiting outside a job centre, highlighting unemployment issues and job search challenges in the current economy.
  • More than 80 retail bosses urge Starmer to tackle youth unemployment crisis

    Retail
    Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.
  • Andy Haldane: Britain after Brexit

    Opinion
    British Chambers President Andy Haldane speaking at a business conference, addressing economic growth and industry challen...

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy