Despite advances in technology, the anticipated growth in workplace efficiency has not materialised. However, the tide may be turning with the emergence of artificial intelligence. According to a widely published report by Workday, AI has the potential to unlock an astounding £119 billion in annual productivity across UK enterprises.

But as promising as AI is, it’s crucial to recognise that it is not a silver bullet. AI can significantly enhance productivity, but business leaders must approach its adoption with a comprehensive, responsible strateg

 Empowerment not replacement

There is a common misconception that AI will lead to widespread job losses, replacing human workers with machines but AI should be viewed as a productivity enhancer rather than a job eliminator.

In the same way Microsoft tools have become indispensable in modern workplaces, AI can take over mundane, repetitive tasks, freeing up employees to focus on more meaningful, impactful work. This shift allows workers to engage in activities that require creativity, problem-solving, and human interaction — areas where AI cannot compete.

The UK’s productivity gap — 24% lower than it would have been if pre-2008 trends had continued — highlights the need for innovative solutions. AI presents a unique opportunity to close this gap by automating routine processes, reducing errors, and enabling faster decision-making. However, to realise this potential, AI must be integrated thoughtfully into the workplace, with an emphasis on enhancing human capabilities rather than replacing them.

While the potential of AI is clear, its adoption has been slow, primarily due to concerns over safety, privacy, and bias. These fears are not unfounded, as the deployment of AI in business processes comes with risks that need to be carefully managed.

Trust in AI is critical for its successful implementation. Employees and business leaders alike need to be confident that AI systems are reliable, transparent, and aligned with business goals.

To build this trust, businesses must prioritise responsible AI strategies. This involves more than just implementing the latest technologies; it requires a commitment to transparency, explainability, and continuous education. Employees should be well-informed about how AI systems work, what data they use, and how decisions are made. This transparency is key to dispelling fears and ensuring that AI is seen as a supportive tool rather than a threat.

Leadership-drive AI

AI alone is not enough to drive the productivity gains the UK needs. Business leaders must take a proactive role in guiding their organisations through the AI revolution. This starts with a clear analysis of the specific efficiencies AI can deliver and the development of a transparent strategy for its adoption. Leaders must also address the cultural barriers to AI integration, such as resistance to change and lack of trust.

Five best practices to protect your data privacy while using Gen AI

Moreover, employee motivation and engagement are critical to unlocking the full potential of AI. Unengaged employees are the biggest barrier to productivity. By leveraging AI to handle routine tasks, employees can focus on work that is more fulfilling and aligned with their skills, leading to higher engagement and, ultimately, greater productivity.

The UK stands on the brink of a significant productivity shift, with AI poised to play a central role. However, AI should not be viewed as a panacea. It is a powerful tool that can enhance productivity, but it must be implemented alongside thoughtful leadership, clear communication, and a commitment to building trust. By approaching AI adoption responsibly, businesses can not only improve productivity but also create a more motivated and engaged workforce. This balanced approach will be key to navigating the future of work and ensuring that AI serves as an enhancer, not a replacement, of human potential.

The post Why the AI productivity revolution should enhance, not replace the workforce appeared first on TechInformed.

TechInformed has previously covered exactly what the winning manifesto mentioned about tech. But can Keir Starmer’s government bring a wave of innovation and support to these critical areas and position the UK as a global leader in technology and sustainability?

We collected insights from industry leaders to find out what they think.

HealthTech

Increased funding, supportive regulations, and encouragement for HealthTech startups will keep the UK competitive and attractive, fostering investment and innovation in the sector, say voices from the sector.

“The biggest challenge our startup landscape is facing is the exodus of businesses from the UK to the US, with 24% of UK HealthTech SMEs preferring to launch in the US rather than the UK.

“Silicon Valley’s allure is in part due to the funding available — US financial schemes through agencies such as DARPA and NASA have been instrumental in its growth. However, we don’t just need more money from the Government but also from investors.

“Despite the UK seeing the third-most HealthTech investment globally, the US is seen as a markedly more attractive market for startups. In addition to funding, this is because of a more supportive regulatory environment — 46% of HealthTech companies have removed products from the UK market due to regulatory uncertainty.

“HealthTech today in the UK is comparable to Fintech over a decade ago, and regulations such as Open Banking and a regulatory sandbox facilitated the UK’s becoming a world leader in Fintech.

“This is something the government has not yet addressed, and, with Labour’s calls for a more digital, interconnected NHS, they will need to look at regulations that facilitate competition, collaboration, and interoperability to accelerate the UK’s economy and create a more favourable environment for startups.”

Santosh Sahu, CEO & founder, Charac

GreenTech

Across the sustainability space, while there is support for Labour’s pledge to decarbonise the power system by 2030, there is a collective desire for urgent, comprehensive, and sustained actions in various sectors to achieve net zero goals while addressing economic and social needs.

Industry leaders address the importance of a regulatory body for carbon accounting, shared concerns over releasing lower-grade green belt land for development, developing a national, affordable energy infrastructure, and innovative urban planning that integrates natural landscapes.

“We need to see the Labour Government take clear, tangible steps to demonstrate its recognition of net zero as the greatest commercial opportunity of our time. There is a lot to do in little time, so prioritisation is key. Importantly, the new government must resist the urge to end and alter existing processes and departments established by the previous Conservative Government that work or showed promise.

“However, there are areas which the Labour Government does need to change. For a start, they must deliver on their manifesto pledge to reverse the damaging policies the previous Government placed, for example, restricting the Bank of England from considering climate change in its mandates.

“Establishing Great British Energy grabs headlines, but equally important are improvements that reduce the red tape and planning restrictions surrounding building green energy infrastructure such as offshore wind farms and electric car charging terminals, reducing grid connection waiting times.

“And then there is data. If businesses are to create accurate and realistic net zero plans, they need access to vital data like energy, water, and waste usage. Currently, this type of data is often held by commercial landlords, who are under no obligation to share it with their tenants.

“In the longer term, the Labour Government needs to create a regulatory body for carbon accounting. Just as the Financial Conduct Authority (FCA) regulates the financial sector, we need an overarching governing body for carbon accounting to ensure consistency, provide guidance, and hold organisations accountable if we are to reach net zero by 2050.”

Andrew Griffiths, director of policy & corporate development, Planet Mark

Economy & Tax

Labour is urged to support the tech sector by promoting London as a global hub, fostering regional tech growth, and attracting international tech companies. Concerns include potential capital gains tax increases, but optimism exists for Labour’s promises on tech investment and R&D.

Taxwise, there’s also a call for Labour to invest in HMRC skills to improve customer service and clarify anti-avoidance rules to protect innocent taxpayers.

“Tech has been recognised as a core pillar of the economy, so for Labour to instil real change for the sector, it needs to first, reaffirm London as a global tech and fintech hub. Promote foreign investment, address local skill gaps and ensure the capital will comfortably remain Europe’s capital for tech innovation.

“Second, look beyond London to support innovation happening across the country and ensure these companies can effectively scale up. Use the tech sector to lead on regional regeneration, particularly in the North. Manchester and Leeds have a thriving community of tech businesses. Any attempt to tap into the potential of the North must involve tech.

“Third, attract international tech companies to set up in the UK, whether for investment, product launches or a general expansion. There is significant interest in the UK from fintechs across Europe, the US, MENA, and Asia — this must be capitalised on.”

Rhys Merrett, head of tech PR, The PHA Group 

“All political parties have promised to make the UK a tech powerhouse, yet the last few years have presented tech founders with serious challenges — an uncertain economic environment has hampered M&A activity, and an increasingly tough narrative on immigration has made it all but impossible to recruit the best overseas talent.

“Concerns surrounding a possible increase to capital gains tax by the Labour government are worrying, but we believe tech founders will welcome the new Labour government.

“It has made strong promises to commit significant investment in clean and environmental tech, it is offering clarity around R&D, and to leave corporation tax and personal taxes unchanged. And it is promising a commitment to securing solid trade deals in key service sectors.”

Simon Wax, partner, Tech & Media at Buzzacott

“The HMRC customer service crisis is going to need proper investment to fix, and both the two main parties have overlooked that in their manifestos. Phone calls to HMRC now take an average of 23 minutes to answer — taxpayers deserve better.

“There remains huge uncertainty over whether making tax digital will happen. The new Government should make a clear statement on this so the tax industry and the self-employed can properly plan.”

Andrew Snowdon, chairman, UHY National Tax Group

Startups

Despite having more “unicorn” startups than Germany, France, and Sweden combined, UK scale-ups struggle to secure investment, and many entrepreneurs move overseas once they reach a certain size. There are calls for Labour to develop innovative funding solutions to retain and support high-growth tech startups.

“One of the biggest frustrations for ambitious, pioneering tech start-ups that we work with is securing the necessary investment to scale. Time and again, we see tech entrepreneurs growing their businesses to a certain size only to struggle to get the investment they need to fuel the next stage of their growth; all too often, they end up taking their business overseas to secure its future.

“In 2022, the UK was only the third country in the world to have a tech sector valued at $1 trillion, with more ‘unicorn’ billion-dollar tech startups being created than Germany, France and Sweden combined. Tech visionaries and entrepreneurs are vital to our country’s future success—not just in revenue terms but also in enabling us to keep ahead in a rapidly evolving landscape.

“We’re calling on Keir Starmer and the new Labour government to find imaginative solutions to the funding challenges that rapid-growth tech startups face, so their drive, vision, expertise and wealth creation stay in the UK.”

Rob Borley, CEO, Dootrix

Productivity

It is suggested that investing in infrastructure and industrial strategies can drive economic growth and that addressing inefficiencies in businesses could accelerate digital transformation and increase productivity to achieve economic goals.

“The new Government needs to focus more immediately on removing inefficiencies within UK businesses, which are weighing down both the private and public sectors.

“Process Intelligence can make this a reality, providing organisations with data-based methods of generating positive impact at the top, the bottom, and the green line.

“Delivering fast growth is tough, but in the meantime, businesses can become leaner and more agile, gaining maximum value within their current processes. This allows greater efficiency, increases productivity, and accelerates digital transformation — all of which will help Labour in achieving its economic goals.”

Rupal Karia, country leader UK&I, Celonis

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