Bank of England governor warns AI could displace jobs at Industrial Revolution scale
The governor of the Bank of England has warned that artificial intelligence is likely to displace workers in ways comparable to the Industrial Revolution, while also reshaping entry-level employment and skills demand in the UK economy.
Bank of England Governor Andrew Bailey said the widespread adoption of AI is likely to displace workers from existing roles, drawing parallels with the labour disruption caused by the Industrial Revolution.
He emphasised that while AI can boost productivity and economic growth, the UK must invest in training and education to help workers transition into jobs that are AI-enabled.
Bailey expressed particular concern about the impact on younger and inexperienced workers, warning that AI may reduce entry-level opportunities in sectors such as law, accountancy and administration. He noted that firms may hire fewer junior staff as AI systems replace routine data and document analysis.
Despite these risks, Bailey described AI as a potential driver of future UK growth, although he cautioned that productivity gains may take time to materialise.
He also stated that the Bank of England is experimenting with AI internally while monitoring concerns about a potential AI market bubble and the risks of a sharp valuation correction.
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