AI can fix productivity. But there’s a cost
Slow private-sector wage growth in Britain offers a cautionary tale.
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Britain’s policymakers need to think harder about how to get young people and those in AI-exposed professions in on those productivity gains.
PHOTO: REUTERS
Mihir Sharma
Is the British economy doing well or poorly? At first glance, the picture appears muddled, with data pulling in different directions.
On the pro side: The Office for National Statistics says that June growth, at 0.3 per cent, was higher than expected. Business investment, long the UK economy’s weakest link, was up 1.7 per cent. The FTSE 100 has registered gains over six successive quarters. And overall wage growth in the second quarter – driven in part by National Health Service pay raises – was also slightly higher than expected.