Employment Law News Roundup – 21.3.24

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This week's roundup focuses upon recent developments pertaining to artificial intelligence (AI)

Artificial Intelligence (AI): Skills Shortages

Further to our recent article, which highlighted the fact that there was a skills gap in artificial intelligence amongst workers aged 55 and over, when compared with those under the age of 55, a new report from the National Audit Office (NAO) has found that deployment of artificial intelligence is being held back by skills shortages within 70% of Government bodies.

Other Findings

The report also found that:-

  • The skills shortages in artificial intelligence mean that Government bodies are very dependent upon temporary staff, contractors, and agency workers, "with an estimated one-third of digital and data professionals in the civil service made up of these groups", which is extremely expensive and comes at a time when the Government is looking to reduce "reliance on contingent labour of this kind to reduce costs and grow long-term capability".
  • Just 37% of Government bodies had deployed any form of artificial intelligence, but in most cases only limited use was being made of it. This is despite the fact that the 2023 Autumn Statement had confirmed that, in the words of the NAO report, "AI use offered potential productivity benefits worth billions in the public sector".
  • Despite the fact that Government bodies are required to have detailed artificial intelligence adoption plans in place by June 2024, just 21% thus far have any kind of strategy in place
  • Other factors cited by respondents to the survey as holding back the deployment of artificial intelligence were lack of funding (70%), concerns relating to flawed output (57%), and worries relating to cyber-security, data protection, and privacy (56%).
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Comment

Commenting upon the findings, the head of the NAO, Gareth Davies, stated: "AI offers government opportunities to transform public services and deliver better outcomes for the taxpayer. To deliver these improved outcomes government needs to make sure its overall programme for AI adoption tackles longstanding issues, including data quality and ageing IT, as well as builds in effective governance of the risks."

Davies added: "Without prompt action to address barriers to making effective use of AI within public services, government will not secure the benefits it has identified."

Government Grants

The Government has been providing grants to invest in AI technology over the last few years. Indeed, research conducted by SAS found that 8 HR organisations received such grants between 2020 -23, averaging £363,729.88 each. This meant that the HR sector, which is one of the sectors likely to be transformed most by artificial intelligence (as we highlighted in a recent article), received the 4th highest amount overall. The sector that gained most was agriculture, followed by retail and then manufacturing.

Furthermore, the Government has now launched the Flexible AI Upskilling Fund, a pilot scheme that will invest £7.4 million in funding skills training in artificial intelligence for small and medium-sized enterprises (SME's). Each applicant can apply for 50% of the costs of such training, subject to them being able to fund at least 50% themselves.

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Most Expect AI To Replace Staff In Their Workplace

A new report published by Orgvue has found that 61% of 1000 business leaders surveyed, believed that some staff would be replaced in their own workplace by artificial intelligence. However, 50% of the respondents conceded that they were not entirely clear about how AI would impact there business, despite 82% of business have already invested in it.

The CEO of Orgvue, Oliver Shaw, stated: "Organisations are beginning to realise that the practicalities of embedding AI into core business operations is far from simple. There’s a dichotomy between the need for business leaders to prepare for AI entering the workforce, their desire for change and the organisation’s ability to make this transformation a reality. This gap in thinking perhaps stems from a lack of clarity on exactly how AI will impact both businesses and their workforces – indeed the research indicates spending so far is more of a gold rush than a carefully plotted journey."

Shaw adds: "To achieve their AI ambitions, CEOs should arm themselves with a better understanding of how AI will truly impact the work their people do today and the skills their organisation has as well as how this may change over time."

Last Updated:  Thursday, March 21, 2024

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