Workday, Inc, a leading provider of solutions to help organisations manage their people and money, today published The UK Productivity Gap: How AI can unlock workplace potential, a new report discovering the positive economic impact artificial intelligence (AI) could, and is, having right now. With the study revealing how a potential £119 billion windfall in productive work for UK enterprises may be untapped thanks to AI, the UK could be on the cusp of a seismic shift after struggling to make meaningful productivity growth for a decade and a half, with current productivity levels 24% lower than they would have been had pre-2008 trends continued.

Further findings from the data reveal the current state of UK productivity and how AI can help: 

• AI could be the key to solving the productivity paradox: After years of uncertainty over the impact of digital technology and productivity, individual business leaders could save 1,117 hours through the use of AI if it was used to its full potential, equivalent to 140 working days annually, while individual employees could save 737 hours, the equivalent of 92 working days.
• Team motivation must be prioritised, with low engagement hammering productivity: Unengaged employees are the biggest barrier to productivity. With its potential to take on mundane, repetitive tasks, AI could empower everyone to focus on more meaningful and impactful work.
• Overcoming the trust barrier is essential for effective AI adoption: 93% of both employees and leaders have concerns relating to trust in AI today, according to the report.

“Sizeable productivity growth has eluded UK workplaces for over 15 years – but responsible AI is set to shift the paradigm,” said Daniel Pell, vice president and country manager, UKI, Workday. “However, AI technologies can only achieve these transformative results if they are trustworthy, which is why Workday AI solutions are designed with transparency, explainability, and reliability from the start. We encourage businesses to take a two-pronged approach when it comes to deploying AI: a concrete analysis of the efficiencies AI can drive, alongside a transparent strategy to tackle the material and cultural barriers to its adoption. As this report reveals, for those that get it right, the results can be transformative for growth.”

Quantifying AI’s Productivity Potential

In an 8-hour workday, the study found employees and business leaders report being genuinely productive for 5.8 and 5.9 hours respectively, leaving over a quarter of the day unproductive and not generating financial value. 

With these lost hours in mind, the role of AI becomes clear. When asked about how much time they expect to save if AI was used to its full potential, both employees and business leaders are bullish. Employees claim 2.9 hours could be saved each day with business leaders predicting almost double this at 4.4 hours.

An additional 2.9 hours of work per day is the equivalent of £11,058 a year of added work for each average employee, based on salaries reported. So overall, £119 billion worth of productive work each year could be untapped across UK large enterprises, through the use of AI.

Removing Barriers to AI Adoption to Meet Productivity Desires

While AI’s potential to transform productivity is clear, barriers to adoption remain. According to leaders, the largest concerns they feel delaying their organisation’s progress in AI are: fears over safety/privacy/bias (38%), needing more time to educate teams (34%) and lack of investment (32%). 

These fears and concerns must be overcome in addition to the following obstacles which the data shows are harming organisation’s productivity: unengaged employees (41%), lack of incentives (41%), and inadequate technology (35%).

Of particular concern is the issue of trust in AI, with 93% of both employees and leaders having concerns relating to trust in AI. This underscores the critical need for responsible AI strategies, including comprehensive education and transparent communication initiatives.

For additional information: 

• Download the report, The UK Productivity Gap: How AI can unlock workplace potential here.
• Find out more about Workday AI here.
• Learn about Workday's approach to responsible AI governance here.