Workday has released a report revealing that AI could generate a £119 billion productivity boost for UK businesses, addressing a productivity slump persisting for over 15 years.

The study highlights that the strategic use of AI could save 7.9 billion employee hours. Predictions show that annually, business leaders could reclaim 1,117 hours a year, and employees could save 737 hours.

Reportedly, current productivity levels are 24 per cent below pre-2008 projections.

Daniel Pell, VP and country manager for UK&I at Workday commented: “Sizeable productivity growth has eluded UK workplaces for over 15 years – but responsible AI has the potential to shift the paradigm”.

However, the report reveals that 93 per cent of employees and leaders express concerns surrounding AI, including safety, privacy, bias, lack of investment and more.

Derek Mackenzie, CEO of Investigo, part of The IN Group, commented: “As the UK battles with a longstanding productivity slump, investment in technologies for efficiency gains couldn’t have come at a better time. The potential savings in employee hours and increase in individual productivity are especially exciting as AI can take the burden of mundane tasks, giving employees more time and energy to focus on their targeted areas of work.

While taking advantage of AI and new technologies, it’s critical that we adopt a holistic approach. AI often raises safety and privacy concerns, therefore communication and comprehensive training in new technologies are essential to integrate AI in the best, most transformative way possible.”

The transformative power of AI extends beyond individual productivity gains. AI can significantly boost the UK economy by enhancing operational efficiency, fostering innovation, and creating new business opportunities. By automating routine tasks, AI allows businesses to focus on higher-value activities, driving innovation and competitiveness. This shift can lead to the creation of new jobs and industries, stimulating economic growth.

Moreover, AI can optimize supply chains, improve customer service, and enhance decision-making processes across various sectors, from finance and healthcare to manufacturing and retail. By leveraging AI technologies, UK businesses can achieve greater agility and resilience, crucial in today’s rapidly changing economic landscape.

While the implementation of AI comes with challenges, the potential benefits in terms of productivity and economic growth are substantial. By addressing concerns and investing in responsible AI practices, UK businesses can harness AI's full potential to drive significant improvements and secure a competitive edge in the global market.