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How AI is Shaping UK Employment Trends: Insights from the British Chambers of Commerce Report

 

The latest British Chambers of Commerce (BCC) Employment Trends Report for 2024, in partnership with Pertemps, revealed how artificial intelligence (AI) is becoming a pivotal factor in the evolving UK workforce landscape. With responses from over 1,200 UK companies, predominantly SMEs, the latest report highlighted AI adoption as both an opportunity and challenge.

AI Adoption in UK Business: A Growing but Uneven Trend

  • Only 25% of UK businesses were using AI technologies, yet 42% expected AI to boost productivity. This optimism was almost unanimous across sectors, with negligible anticipation of negative impacts.
  • Larger companies were leading the charge on AI, while many smaller businesses remained cautious or uncertain.
  • The most prevalent AI applications included:

– Virtual assistants and generative AI (e.g., ChatGPT, Microsoft Copilot) which streamline workflows and provide real-time support.
– Chatbots enhancing customer service with faster, automated interactions.
– Data analytics tools that improve decision-making and operational efficiency.

Why AI Matters for the UK Workforce

  • AI is poised to transform routine tasks, enabling employees to focus on  higher-value work.
  • Adoption fosters productivity gains that could be critical for SMEs competing in a challenging economic environment.
  • Early AI adopters reported faster problem-solving and improved customer engagement.
  • However, smaller firms need support and clear strategies to overcome barriers to AI adoption.

Addressing AI-Related Skills Shortages

  • Despite growing AI interest, the report showed widespread skills gaps in technology and digital literacy — critical for maximising AI benefits.
  • 59% of businesses highlighted the need for technical skills, including AI competencies.
  • Only 11% felt current training met long-term skill demands, risking a talent bottleneck in AI and related fields.

Actionable AI Recommendations for UK Businesses

  1. Start Small with No-Regrets AI Projects

  • Begin with pilot uses like automating admin tasks or adopting chatbots.
  • Measure results and employee feedback before scaling.

  1. Invest in AI Training & Upskilling

  • Provide accessible education on AI tools and digital skills.
  • Encourage continuous learning to keep pace with technology changes.
  • Remember providing learning opportunities can also support retention of your talented staff as they will feel more content that they are developing in modern skills.
  • Senior management should lead by example by undertaking training.  See learning opportunities here: Learning AI

  1. Leverage External AI Expertise

  • Partner with technology providers or industry experts to access knowledge and resources.

  1. Foster an AI-Positive Culture

  • Educate staff on AI benefits and address fears around job displacement.
  • Promote collaboration between AI tools and human workers.

For more details, see the official BCC Employment Trends Report 2024.