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AI will not destroy jobs, says Bank of England boss

Andrew Bailey said: "Economies adapt, jobs adapt, and we learn to work with it" -

Bank of England governor Andrew Bailey told the BBC that although AI holds risks, he is optimistic about its impact on jobs.

Bailey said: "I'm an economic historian, before I became a central banker. Economies adapt, jobs adapt, and we learn to work with it. And I think you get a better result by people with machines than with machines on their own. So I'm an optimist."


Read more: AI will affect 40% of jobs, IMF says


Last week (2 February), the Communications and Digital Committee in the House of Lords released a report which said that the UK will miss AI gold rush unless the government adopts a more positive vision.

Baroness Stowell of Beeston, chair of the committee, said: “The rapid development of AI large language models is likely to have a profound effect on society, comparable to the introduction of the internet. 

“That makes it vital for the government to get its approach right and not miss out on opportunities – particularly not if this is out of caution for far-off and improbable risks. We need to address risks in order to be able to take advantage of the opportunities, but we need to be proportionate and practical. 

“We must avoid the UK missing out on a potential AI gold rush.”


Read more: Asking if AI is smarter than us is the wrong approach


Vasagi Kothandapani, president of AI consultancy TrainAI, said AI has the potential to enhance productivity, if developed with human oversight.

He told HR magazine: "AI holds the potential to enhance human capabilities, enabling the UK workforce to perform their roles with greater precision and focus more on the intricate nuances that define their positions. If AI is being used without human intervention or review, it’s being used wrong.

"The real challenge we need to overcome to achieve the productivity gains the governor envisions lies in bridging the AI-knowledge gap, while ensuring ethical AI practices. Firms must have adequately trained people to utilise AI responsibly and sufficient data to train it effectively. 

“Without these components, and a commitment to ethical AI, the UK economy won’t fully benefit from AI advancements, rendering investments in these solutions ineffective."