Pearson Strategy VP Talks Gen AI's Role in Productivity

As organisations grapple with the demands of a modern economy, low productivity and an ageing workforce are significant concerns, particularly in developed nations such as the UK, where economic growth has been hindered by stagnant productivity rates since the 2008 financial crisis. 

The slow productivity growth has placed companies under increasing pressure to adapt and innovate. Here, AI, particularly Gen AI, has many excited and curious to see if this could break the productivity problem. 

One of the central promises of Gen AI lies in its capacity to alleviate labour shortages and increase productivity by taking on repetitive tasks or doing tasks quicker. 

But where exactly will we see, if any, productivity bubbles start to percolate? To find out more, we spoke with Oli Latham, VP of Strategy and Growth at Pearson Workforce Skills.

The potential of Gen AI 

According to Oli, Gen AI could be the key to addressing the UK’s productivity challenges. 

"By using AI to perform more administrative or repetitive tasks, this will give employees valuable time back to dedicate to higher-value, human-led work," he says. 

This is critical, particularly as the UK has seen limited productivity growth over the past decade, with output per hour rising by just 0.5% per year between 2010 and 2022.

Oli emphasises that the UK stands to benefit greatly from embracing Gen AI, particularly through reducing the burden of mundane tasks and allowing workers to focus on tasks that require creativity, strategy, and collaboration.

The potential of Gen AI 

According to Oli, Gen AI could be the key to addressing the UK’s productivity challenges. 

"By using AI to perform more administrative or repetitive tasks, this will give employees valuable time back to dedicate to higher-value, human-led work," he says. 

This is critical, particularly as the UK has seen limited productivity growth over the past decade, with output per hour rising by just 0.5% per year between 2010 and 2022.

Oli emphasises that the UK stands to benefit greatly from embracing Gen AI, particularly through reducing the burden of mundane tasks and allowing workers to focus on tasks that require creativity, strategy, and collaboration.

He notes that, by 2026, AI could save UK workers 19 million hours per week. These saved hours can be reallocated to areas that drive greater value for organisations, such as innovation, leadership, and customer engagement. 

By removing time-consuming tasks, companies enable employees to focus on areas where human skills remain unmatched, providing a much-needed boost to productivity levels.

Target sectors for skills boost

While the applications of AI are broad, Oli highlights specific sectors where generative AI could bring the most immediate benefits. 

"Sectors like education and healthcare stand to benefit the most from generative AI in terms of time saved," he explains. 

In education, where teachers spend countless hours on lesson planning and administrative duties, AI could save up to 665,000 hours per week, giving educators more time to engage with students and enhance learning outcomes.

Similarly, in healthcare, AI has the potential to reduce administrative workloads, allowing healthcare professionals to devote more time to patient care. 

Oli points out that this could free up to 406,000 hours per week, a change that would directly impact patient experiences and improve healthcare delivery. 

The adoption of AI in these sectors not only addresses efficiency but also helps to tackle the underlying workforce shortages, as professionals are empowered to focus on essential, human-centred tasks that cannot be easily automated.

Integrating AI to empower, ethically

For organisations aiming to integrate Gen AI effectively, Oli advises a careful, responsible approach. 

"Companies should think about how they design work and roles to incorporate AI into workflows," he advises, underscoring the importance of empowering and guiding employees through this transition. 

To do this successfully, companies need to implement training programmes that build employees’ confidence in using AI and upskilling them to make the most of AI tools.

Moreover, Oli suggests fostering a culture of continuous learning and innovation. By introducing digital badges, certifications, and training sessions, companies can ensure that employees feel supported in adopting new technologies. 

Encouraging a test-and-learn approach allows organisations to adapt AI applications to their unique needs while respecting employees' autonomy and creativity. 

"It’s already clear that any organisations that aren’t exploring generative AI’s potential are falling behind their competition," he notes. 

Ensuring responsible use of AI, such as safeguarding data privacy and intellectual property, is also essential to maintain employee morale and trust in these tools.

Preparing for the future

As AI increasingly supports repetitive tasks, Oli believes that hiring practices must also evolve. 

"Employers should focus their efforts on candidates with a growth mindset and adaptable qualities," he asserts. 

In a technology-driven workplace, attributes such as curiosity, problem-solving skills, and collaboration are essential. With AI shouldering routine tasks, these "power skills" become critical in a competitive job market.

The ideal future candidate will not only possess technical skills but also be adept at working alongside AI, continually learning and integrating new technologies into their roles. 

"As AI takes over repetitive tasks, the ‘power skills’ that require a human touch – such as collaboration and social intelligence – will come to the fore," Oli concludes. 

******

Make sure you check out the latest edition of AI Magazine and also sign up to our global conference series - Tech & AI LIVE 2024

******

AI Magazine is a BizClik brand