A new report has found that a potential £119 billion windfall in productivity for UK enterprises may be unlocked thanks to AI, showing that the UK could be on the cusp of a seismic shift after struggling to make meaningful productivity growth for a decade and a half.

This is from Workday, Inc, a management solutions provider, which released their report The UK Productivity Gap: How AI can unlock workplace, a new report discovering the positive economic impact AI is having as well as its future potential.

The report revealed that current productivity levels 24% lower than they would have been had pre-2008 trends continued, but AI could help this shortfall.

According to the report, AI could be the key to solving the UK’s productivity paradox. After years of uncertainty over the impact of digital technology and productivity, large businesses in the UK could save up to 7.9 billion employee hours through the use of AI.

Individual business leaders could save 1,117 hours per year through the use of AI if it was used to its full potential, equivalent to 140 working days annually, while individual employees could save 737 hours each year, the equivalent of 92 working days.

The study also found that team motivation must be prioritised, with low enagement hammering productivity even if AI is adopted. Unengaged employees are the biggest barrier to productivity, the study claims. With its potential to take on mundane, repetitive tasks, AI could empower everyone to focus on more meaningful and impactful work.

Further, overcoming barriers in trust is going to be essential for AI adoption. 93% of both employees and leaders have concerns relating to trust in AI today, according to the report.

“Sizeable productivity growth has eluded UK workplaces for over 15 years – but responsible AI has the potential to shift the paradigm,” said Daniel Pell, vice president and country manager, UKI, Workday.

“However, AI can only reach its full potential if it is trusted and aligned to business outcomes, which is why Workday AI solutions are designed with transparency, explainability, and reliability from the start.

“We encourage businesses to take a two-pronged approach when it comes to deploying AI: a concrete analysis of the efficiencies AI can drive, alongside a transparent strategy to tackle the material and cultural barriers to its adoption. As this report reveals, for those that get it right, the results can be transformative for growth.”

Quantifying AI’s Productivity Potential 

In an 8-hour workday, the study found employees and business leaders being genuinely productive for 5.8 and 5.9 hours respectively, leaving over a quarter of the day unproductive and not generating business value.

With these lost hours in mind, the role of AI becomes clear. When asked about how much time they expect to save if AI was used to its full potential, both employees and business leaders are bullish. Employees claim 2.9 hours could be saved each day with business leaders predicting almost double this at 4.4 hours.

An additional 2.9 hours of work per day is the equivalent of £11,058 a year of added work for each average employee, based on salaries reported. With over 10 million employees in large businesses across the UK, £119 billion worth of productive work each year could be untapped across UK large enterprises through the use of AI.

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Removing Barriers to AI Adoption to Meet Productivity Desires

While AI’s potential to transform productivity is clear, barriers to adoption remain. According to leaders, the largest concerns they feel delaying their organisation’s progress in AI are: fears over safety/privacy/bias (38%), needing more time to educate teams (34%) and lack of investment (32%).

These fears and concerns must be overcome in addition to the following obstacles which the data shows are harming organisation’s productivity: unengaged employees (41%), lack of incentives (41%), and inadequate technology (35%).

Of particular concern is the issue of trust in AI, with 93% of both employees and leaders having concerns relating to trust in AI. This underscores the critical need for responsible AI strategies, including comprehensive education and transparent communication initiatives.