Bank Underground is a blog for Bank of England staff to share views that challenge – or support – prevailing policy orthodoxies. Bank Underground argues that the potential for simultaneous and rapid disruption, coupled with the breadth of human functions that AI might replicate, may have profound implications for labor markets. They conclude that economists should seriously consider the possibility that millions of people may be at risk of unemployment, should these technologies be widely adopted.

The rise of the robots [AI and automation] 

Rapid advances in robotics and automation technologies in recent years have coincided with a period of strong growth of lesser-skilled jobs in the UK [Low Pay Commission Report Spring 2016]. There is growing debate in the economics community and academia about whether technological progress threatens to displace a large proportion of these jobs in the longer term. Examples where automation is starting to gain traction internationally include warehousing, haulage, hotels, restaurants and agriculture: all industries which are frequently reported by our Agency colleagues to be heavily dependent on lesser-skilled labour. In the UK, driverless cars are currently being trialled on the roads of Milton Keynes and 'hands off' self-driving cars are expected on the motorways in 2018.