The Impact of AI on the Labour Market

This report uses novel analysis to explore how AI could affect the labour market, with specific reference to the United Kingdom. Although much discussion of AI is currently based around large language models (LLMs), this is part of a broader story about automation, which takes in physical tasks as well as cognitive ones. Our study therefore aims to take a wider view that incorporates a broader definition of AI, including AI-enabled hardware, and that examines three key ways that AI could affect the labour market: through demand, supply and by changing the workplace experience.