AI Could Soon Replace Millions of Bank and Accounting Staff, UK Unions Warn
UK unions to call for action against AI. (Photo by Mario Tama/Getty Images)
Key Takeaways
- UK unions are set to pressure the government to tighten regulations on the protection of jobs against artificial intelligence.
- Up to 54% of banking roles could be at risk of artificial intelligence displacement in the future.
- Prime Minister Sir Kier Starmer previously said his government would depart from the Conservatives’ “pro-innovation“ approach to artificial intelligence.
UK unions warn that artificial intelligence (AI) could soon replace millions of bankers, accountants, and insurers, and companies should be ready to pay for retraining programs.
As the Financial Times reported on Tuesday, Aug. 27, several trade union leaders are now seeking to pressure Labour ministers to implement new legislation regulating the use of AI in the workplace.
AI could affect almost a fifth of jobs at the highest level of exposure, according to 2023 research by leading jobs platform Indeed.
Unions To Push for Stronger AI Regulation
Accord, an independent trade union representing the banking industry, is planning to call for a “major program of reskilling and retraining” to equip employees with new roles that will evolve alongside the growth of AI.
“Congress notes with concern a report from June 2024 stating that up to 54 percent of banking jobs and 48 percent of insurance roles could be displaced by AI in the future,” the accord motion, published on the TUC website, said.
The report, released by global investment firm Citigroup in June, concluded that the banking industry will be the most heavily affected by AI’s rise.
Up to 54% of roles could be at risk of AI displacement, with another 12% of banking jobs potentially augmented by AI.
At the same time, Citigroup said AI could drive global banking industry profits to $2 trillion by 2028, a 9% increase over the next five years.
“UK employment law is simply failing to keep pace with the rapid speed of technological change,” TUC assistant general secretary Kate Bell said in April. “We are losing the race to regulate AI in the workplace.”
Bell added: “AI is already making life-changing calls in the workplace – including how people are hired, performance managed and fired. We urgently need to put new guardrails in place to protect workers from exploitation and discrimination. This should be a national priority.”
Unite, TUC Young Workers’ Conference, and Artists’ Union England will present three more motions at TUC’s conference.
Unite will warn that AI is increasingly being “used to control workers through observation, with the low-paid and outsourced BAEM workers being the most vulnerable to surveillance work.”
Unite said it “believes no worker must be left behind as generative AI reshapes the nature of work.”
The union will urge the government to ensure “trade unions have the right to be consulted and to negotiate on the use of AI and new technologies at work,” including all aspects of the collection, handling and misuse of data.
Artists’ Union England will call for the government to strengthen democratic systems against the possible threats against them by AI.
The TUC Young Workers’ Conference will state that it believes “bad bosses will use AI to increase inequality, replace workers, and drive down working conditions.”
The union will call for targeted “support for young workers to ensure their employment is protected in the short and long term in sectors that are at high risk of automation.”
AI and Job Displacement Beyond the Bank
A 2024 report from automated search engine optimization company SEO.AI highlighted that most businesses foresee computers replacing human tasks within 50 years.
According to the recruitment platform Indeed, AI will affect almost a fifth of jobs with the highest level of exposure.
Indeed Hiring Lab, a team within the company that provides economic research into the global labour market, said that “all jobs face some potential exposure to GenAI-driven change.”
Indeed’s AI at Work report , released in 2023, said that almost a fifth (19.8%) of jobs face the highest level of potential exposure, while over a third (34.6%) face the lowest possible exposure.
UK’s Approach to AI
The new Labour government’s approach to AI in the UK emphasizes regulation, safety, and innovation.
UK Prime Minister Sir Kier Starmer previously said that his government would depart from the Conservatives’ “pro-innovation“ approach.
Starmer’s government is currently developing an AI bill. However, the Financial Times reported, citing people briefed on its contents, that it will likely fall short of the unions’ focus on job protection.
Instead, the AI bill will focus on regulating Big Tech developers like Google and AI.
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