Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2018
07

AI to replace seven million UK jobs

Open-access content Tuesday 17th July 2018 — updated 5.50pm, Wednesday 29th April 2020

Artificial intelligence (AI) is predicted to displace approximately seven million jobs in the UK over the next 20 years, with roles in the financial sector some of the most at risk.

2


That is according to research from PricewaterhouseCoopers (PwC), which reveals that AI could wipe out around a quarter of finance and insurance jobs by 2037.

However, the technology is expected to create a substantial number of new roles, resulting in an overall net job loss of approximately 7% for the financial sector.

For the wider economy, it is predicted that AI will create around 7.2 million new positions over the next two decades, resulting in a small net jobs boost of around 200,000.

"Major new technologies, from steam engines to computers, displace some existing jobs but also generate large productivity gains," said PwC chief economist, John Hawksworth.

"Our analysis suggests the same will be true of AI, robots and related technologies, but the distribution of jobs across sectors will shift considerably in the process."

The research shows that the health and social work sector could be one of the most positively impacted by AI, experiencing a net 22% boost in employment with nearly one million new jobs.

It is thought that, as real incomes rise and the UK population ages, patients will increasingly want the 'human touch' from doctors, nurses and other health and social care workers.

In contrast, a widespread roll out of driverless vehicles and increasingly autonomous systems could result in a 22% net job loss for the transportation and storage sector.

To mitigate the displacement effect of AI, PwC argue the government should invest more in 'STEM' skills, while also exploring how art and design can feature at the heart of innovation.

"It's likely the fourth industrial revolution will favour those with strong digital skills, as well as capabilities like creativity and teamwork which machines find harder to replicate," PwC UK AI leader, Euan Cameron, said.

"Rapid technology change has often been associated with increases in wealth and income inequality, so it's vital government and business works together to make sure everyone benefits from the positive benefits that AI can bring."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our July 2018 issue of The Actuary.
Click here to view this issue
Filed in:
07

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ