UK businesses eye AI as the cheaper, non-whining alternative to actual staff
- Reference: 1736936166
- News link: https://www.theregister.co.uk/2025/01/15/uk_companies_ai_report/
- Source link:
The research, [1]reported in the Financial Times, is the latest suggestion that rather than boosting productivity (as marketing for AI products from the likes of Microsoft insists,) companies are increasingly exploring the technology as a means to avoid having to invest in staff.
Are you better value for money than AI? [2]READ MORE
The study, commissioned by Boston Consulting Group, found that just over half of UK business leaders (51 percent) planned to "redirect investment from staff to AI" and 44 percent planned to prioritize investment in AI.
The survey attributed the shift to increasing costs in hiring staff due to government policies. For example, the UK Chancellor has increased the rate of National Insurance contributions by employers, and the National Living Wage is also set to increase.
While meatbags need paying, AI remains something that can be licensed in the same way as software applications. As such, employers buying into the hype surrounding AI see the tech as a way to reduce their investment in staff.
[3]
The government [4]announced plans this week to use AI to drive growth, and last year, OpenAI chief financial officer Sarah Friar [5]reportedly questioned the need to recruit humans for certain roles when there might be a generative AI tool that could do the job.
[6]Europe hopes Trump trumps Biden's plan for US to play AI gatekeeper
[7]UK unveils plans to mainline AI into the veins of the nation
[8]Hands-on jobs to grow fastest, because AI can't touch them
[9]Court docs allege Meta trained its AI models on contentious trove of maybe-pirated content
While the marketing from companies such as Microsoft might be all about employees saving time through the technology, the finding that more than half of UK businesses are investing to save on staffing costs is not surprising.
[10]Figures from the UK Office for National Statistics have shown a decline in vacancies, with a year-on-year percentage change of almost 15 percent downward in Information and Communication vacancies. Companies such as British Telecom [11]have come up with figures in the region of 10,000 for headcount reductions that could be made possible by the deployment of AI.
[12]
There is also [13]evidence that companies are recruiting workers with AI skills. However, those numbers are unlikely to balance out the roles sacrificed by employers keen to embrace the efficiencies of the technology.
While the report might point to government policies as a driver for reducing investment in staff and increasing AI spend, the hype that the technology permits more to be done with less is music to the ears of executives seeking an excuse to make cuts. ®
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[1] https://www.ft.com/content/56da8149-d51a-43b2-8ed8-fff0ddb6005d
[2] https://www.theregister.com/2024/12/23/ai_job_replacement_comment/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z4eVXdJudNbAEDmQc2wdrgAAAA0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2025/01/13/uk_government_ai_plans/
[5] https://www.theregister.com/2024/12/23/ai_job_replacement_comment
[6] https://www.theregister.com/2025/01/14/ec_biden_ai_order_concerns/
[7] https://www.theregister.com/2025/01/13/uk_government_ai_plans/
[8] https://www.theregister.com/2025/01/10/ai_jobs_wef/
[9] https://www.theregister.com/2025/01/10/meta_libgen_allegation/
[10] https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/jobsandvacanciesintheuk/december2024
[11] https://www.theregister.com/2023/11/14/bt_horse_and_ai_are_the_same/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z4eVXdJudNbAEDmQc2wdrgAAAA0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2024/02/14/ai_wont_take_our_jobs/
[14] https://whitepapers.theregister.com/
I'm with you on this, however, I think far too much smoke and mirrors on the actual cost of AI as a contrast and compare.
Of course, AI will do almost any job worse than almost any human, but who does that have consequences for: Other human employees? The person signing the cheques doesn't care. Customers? Those are just money bags as far as the boss is concerned, as long as everyone in the industry is offering shitty AI service what choice do they have?
If you cut the costs at a company you are a good CEO who plays the game and you will be rewarded with a bonus and a pay rise. The impact on the people beneath you is no concern to you or your shareholders.
The problem they will face is in getting AI to pay for their products and services.
Still the hype that AI
Is coming to "Take Yer Jerbs" https://www.youtube.com/watch?v=QGmhLtsK2ZQ&t=1s
I still remain to be convinced it's going to do anything of significance to actually cause considerable impact to actual meat popsicles, i.e. Us Hoomans!
Sure, there may be areas for streamlining business, by the use of this somewhat immature tech, but that's been the case for some time in any sector, manglement are always looking to be more efficient, through whatever means, tech, cheap labour, offshoring ..... the list goes on.
Shame I don't have an FT subscription, or I'd read the report and pick that apart too!
I'm seeing a lot of hype and limited substance in AI reports.
"do more with less"
Inevitably that really crystallizes a less with less for the poor sods that count as their long suffering clients or customers.
At the rate they slapping on this shit all over the shop they may have import merde across the Channel to make up for a domestic shortfall.
" The survey attributed the shift to increasing costs in hiring staff due to government policies. For example, the UK Chancellor has increased the rate of National Insurance contributions by employers, and the National Living Wage is also set to increase. "
There could be no living wage, there could be no NI contributions, but if a business still had to pay a sack of blood and bone £10 a day while AI cost them £1, they'd go for AI.