British firms that are developing and using artificial intelligence are seeing significant productivity gains, but these advances are coming at the expense of jobs, according to a recent analysis by the Bank of England.
The BOE's staff blog post reveals that software and IT consulting firms have increased their contribution to annual productivity growth tenfold compared to the decade before the pandemic, adding 0.1 percentage point in 2023-2025. Additionally, information service providers have shifted from being a drag on productivity to a key driver during the same period.
This trend highlights the dual impact of AI on the economy: while it boosts efficiency and output, it also raises concerns about job displacement. As AI continues to evolve, businesses and policymakers must navigate the balance between technological advancement and workforce stability.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!