In a significant admission about the economic impact of emerging technologies, UK Technology Secretary Liz Kendall has warned that increasing deployment of artificial intelligence will inevitably lead to job losses across various sectors.
Government's Honest Assessment
Speaking at Bloomberg's London headquarters to an audience of technology and business leaders, Kendall delivered a frank assessment of AI's potential disruption to the British workforce. "I want to level with the public," she stated. "Some jobs will go. We know people are worried about graduate entry jobs in places like law and finance."
The former Work and Pensions Secretary declined to provide specific figures regarding potential redundancies but emphasised that while certain positions would disappear, "others will be created in their place." This acknowledgment comes despite some forecasts suggesting AI could create a net increase in employment, about which Kendall remarked: "I'm not complacent about that."
Ambitious Training Programme
Alongside her warnings, Kendall announced ambitious government plans to train up to 10 million British workers in fundamental AI skills by 2030. This comprehensive programme will include cabinet members and represents what Kendall described as "the biggest single plan to upskill the nation since Harold Wilson's Open University."
The initiative signals a strategic focus on helping workers adapt to forthcoming labour market shifts rather than resisting technological advancement. The online AI training will involve Multiverse, a company founded by Euan Blair, alongside a new programme specifically designed to support women moving into entry-level technology roles.
Strategic Vision for AI Adoption
Kendall outlined the government's goal to "make Britain the fastest AI adoption country in the G7," positioning the technology as central to future economic growth. She announced that jobs would be created around four designated AI growth zones, describing the current moment as being "on the cusp of great change – an industrial revolution taking place in a decade."
"We have barely begun to see how this technology will transform all our lives – I believe for the better," she added, striking a balance between acknowledging disruption and expressing optimism about technological progress.
Institutional Response
The Department of Science, Innovation and Technology is establishing a new "future of work unit" with involvement from trade unions and business leaders. This institutional response aims to coordinate efforts between government, industry, and worker representatives to manage the transition effectively.
Kendall pledged that Labour "won't leave people to struggle on their own," emphasising the government's commitment to supporting workers through the technological transformation.
International Partnerships and Criticism
The announcement comes amid criticism that ministers are relying too heavily on US AI companies, whose models could soon compete with British white-collar workers. The government has confirmed a $1 million donation from Mark Zuckerberg's Meta being allocated to build AI systems for defence, national security, and transport applications.
Additionally, Anthropic, a US AI startup valued at $350 billion, has been selected to build and pilot a dedicated assistant tool for public services on gov.uk. The initial model will provide career advice to jobseekers, with Anthropic providing these services free of charge. The government also maintains a memorandum of understanding with OpenAI, the creator of ChatGPT.
Broader Context
Kendall's warnings echo concerns raised earlier this month by London Mayor Sadiq Khan, who cautioned that without proper action to harness AI "as a superpower for positive transformation and creation," it could become "a weapon of mass destruction of jobs."
The government's dual approach – acknowledging potential job losses while implementing substantial retraining initiatives – reflects the complex balancing act facing policymakers as artificial intelligence continues to advance rapidly across multiple sectors of the economy.
