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Up to 70 per cent of ‘knowledge economy’ tasks at risk of being transformed by generative AI, finds IPPR

However, AI’s influence extends beyond work, with one million people in the UK now using digital AI companions

‘Seismic’ changes in artificial intelligence require more democratic direction, urges think tank

A new report by the Institute for Public Policy Research (IPPR) reveals the significant impact generative AI is having on UK society, both professionally and personally. The findings highlight an urgent need for government intervention to set a clear direction for AI’s role in daily life.

The think tank highlights that merely accelerating AI adoption could end up failing citizens and could have unintended consequences. Instead, AI deployment should be steered towards tackling big societal changes, such as preventative healthcare.

On the eve of the international AI summit — attended by world leaders and the CEOs of major technology companies — AI progress continues to accelerate at an unprecedented pace and is poised to have a seismic impact on society. This transformation, including the development of sophisticated AI agents, calls for greater democratic oversight and direction.

The report notes that:

Generative AI is reshaping the workplace, particularly within the knowledge economy — jobs reliant on computer-based tasks like project management, marketing, and administrative support.

IPPR’s analysis of 22,000 tasks commonly performed by workers found that up to 70 per cent of tasks in these types of roles could be significantly transformed or replaced by AI.

AI has the greatest impact on “organisational and strategic tasks” as well as “repetitive and non-repetitive cognitive and analytical tasks,” raising questions about the future of work and how businesses adapt to this rapid transformation.

Beyond the economy, society is already being changed by AI. Approximately 930,000 people in the UK have AI digital companions on the app ‘Character.AI’, while a similar number may also have companions on ‘Replika’. Many users have had romantic relationships with these chatbots.

While these companions can provide emotional support, they also carry risks of addiction and potential long-term psychological impacts, especially for young people, are yet unknown.

IPPR argues that current AI policy is too narrowly focused on either accelerating AI adoption or ensuring its safety, while neglecting the critical need for setting a clear and purposeful direction for AI adoption. The report advocates for a "new politics of AI", where politicians, citizens, and businesses collaborate to define specific missions and targets for AI deployment to achieve. For instance, the report highlights that there are ‘deployment gaps’ in preventative health, where AI could have huge benefits but it might not automatically be deployed there without more policy action.

The upcoming Paris AI Action Summit presents an opportunity for policymakers to shift the focus toward mission based AI policies that deliver public value. This means leveraging AI innovation to address pressing societal challenges, such as improving healthcare, combating climate change, and enhancing education.

IPPR advocates for a mission-based approach, where governments:

Set clear policies, including tax policy and regulatory frameworks

Establish measurable targets and funding mechanisms alongside timelines

Partner with private sector and civil society to guide AI development

Ensure robust oversight to keep AI advancements aligned with public interest

Carsten Jung, head of AI at IPPR, said:

“AI capabilities are advancing at breath-taking speed. The launch of ‘AI agents’ shows AI is different from past technologies. It is not merely a tool – it is an actor. AI technology could have a seismic impact on economy and society: it will transform jobs, destroy old ones, create new ones, trigger the development of new products and services and allow us to do things we could not do before. But given its immense potential for change, it is important to steer it towards helping us solve big societal problems.

“Politics needs to catch up with the implications of powerful AI. Beyond just ensuring AI models are safe, we need to determine what goals we want to achieve. This demands democratic debate and close scrutiny of how AI is deployed. The public will want to be involved in setting clear missions and boundaries. The promise of AI to tackle some of humanity’s biggest problems is tantalising – we all have a stake in directing and achieving it.”

ENDS

Carsten Jung, the report’s author, is available for interview.

CONTACT

Liam Evans, Senior Digital and Media Officer: 07419 365334 l.evans@ippr.org

NOTES TO EDITORS

The IPPR paper will be published here: https://www.ippr.org/articles/...;
Advance copies of the report are available under embargo on request
IPPR (the Institute for Public Policy Research) is an independent charity working towards a fairer, greener, and more prosperous society. We are researchers, communicators, and policy experts creating tangible progressive change, and turning bold ideas into common sense realities. Working across the UK, IPPR, IPPR North, and IPPR Scotland are deeply connected to the people of our nations and regions, and the issues our communities face. We have helped shape national conversations and progressive policy change for more than 30 years. From making the early case for the minimum wage and tackling regional inequality, to proposing a windfall tax on energy companies, IPPR’s research and policy work has put forward practical solutions for the crises facing society. www.ippr.org