The solution to the UK's productivity problem doesn't have to run on rails
The UK finds itself in a bit of a pickle. The government is itching to crack the so-called productivity conundrum, but the prospect of shelling out a whopping £91 billion on what remains of a high-speed train line, long hailed as vital to boost UK productivity, isn't exactly appealing.
It's a snapshot of a much bigger issue. Options for juicing productivity tend to come with eye-watering price tags, take aeons to bear fruit, or simply aren't politically viable given today's climate. Think dramatic surges in inward migration, sweeping tax cuts akin to the calamitous mini-budget, or revamping the UK's labyrinthine of regulatory systems.
Enter generative AI, our glimmer of hope. It's no secret that it could supercharge productivity. McKinsey tells us that generative AI could spur labour productivity growth of 0.1 to 0.6 percent annually through 2040, depending on how quickly we embrace the tech. Meanwhile, KPMG reckons that adopting generative AI could ramp up UK productivity by 1.2%, or £31 billion ($39 billion) extra output per year.
The early signs are encouraging. A Deloitte survey reveals that over a quarter (26%) of UK adults have dabbled in generative AI. That's about 13 million people! One in ten respondents are using it for work, which represents roughly four million folks nationwide. Generative AI's uptake in the UK has even eclipsed that of voice-assisted speakers like Amazon's Alexa, which took a leisurely five years to hit the same adoption rates.
But we can do better, particularly given the urgency of the matter and the dearth of alternative solutions - and that's before you factor in its potential contribution to other pressing issues, as I discussed in my recent piece on net zero.
Reportedly, a quarter of the cash saved on HS2 is earmarked for pothole repairs, and that's grand. The triumph of generative AI hinges on our knack for unlocking industry data, language, and workflows, rather than pumping in gargantuan sums of public money. As you might guess, we reckon the best way to do this is through specialised applications like Fifth Dimension AI. You can find more of my thoughts on this topic here.
I'm talking about a national problem that YOU can help solve, all by automating the most boring parts of your job! That's really why we think adoption of generative AI will soar and the UK will wiggle free of its bind. We're confident we're on the brink of a lasting solution to one of the nation's most vexing economic puzzles.
