The Impact of Artificial
Intelligence
on the UK
office market
Artificial Intelligence (AI) has the power to harness data in a way far beyond human capability and is having an increasing impact on the way we work. It is shaping the skills required of the workforce, with employment shifting away from routine tasks to high-tech, creative and managerial roles.
Investment funding received by AI companies was 151.7% higher in 2021 than in 2017 (26.0% annualised growth). With huge capital injections into the sector, there is no doubt that the adoption of AI technologies will gather pace in the near-term.
Yet, history suggests that the pivotal technological advances of the last 50 years have not caused an overall drop in employment and the consequent need for office space. Indeed, as the chart illustrates, the employment rate has actually trended upwards.
However, the impact of AI will be geographically disproportionate. While there will be both job losses and gains in all regions, some will be net beneficiaries and others may see a net loss.
Our report examines the growth of AI, its potential impact on employment and office demand, and the extent to which this may vary across different parts of the UK.
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80%
75%
70%
65%
60%
The immense growth in AI inevitably raises concerns of significant job losses in office-based sectors and ignites conversation about the future of the office.
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
Key Technological Advancements and Rate of Employment in the UK
Source: Carter Jonas, ONS, Weber State University, Computer History Museum
The imagery used throughout this research report is created by Artificial Intelligence via Midjourney. /Imagine.Prompt: (robot, data processing, modern office, hyperrealistic, neon, futuristic)
Read our full report to find out more.
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First
pocket-sized electronic
calculator
Learn more
First word processing program
The
Sinclair ZX80 introduced
IBM Personal Computer (PC) is bought to market
First ‘public’ mobile phone call in the UK
World Wide Web available
to the public
IBM’s Deep
Blue defeats
the world chess champion
USB flash
drive comes
to market
Facebook founded
YouTube founded & Google Earth released
First bitcoin transaction
Siri
announced
5G available
to the public
Employment rate (aged 16 to 64, seasonally adjusted): %