A new report by the Institute for Public Policy Research (IPPR) looks at the impact generative AI is having on the UK workforce, and calls for clearer government direction on AI’s role in everyday life.

Analysis of 22,000 tasks performed by workers suggests that up to 70 percent of white-collar tasks could be significantly altered or replaced by AI. The greatest impact is on organisational and strategic responsibilities, as well as cognitive and analytical tasks. This raises concerns about how businesses will adapt to these transformations and the broader implications for employment.

The report, released ahead of the international AI summit attended by world leaders and technology executives, warns that AI’s rapid development requires greater democratic oversight. It identifies the knowledge economy, including roles in project management, marketing, and administration, as being particularly affected by AI-driven changes.

Beyond professional settings, AI is also influencing personal interactions. Approximately 930,000 people in the UK use AI digital companions through platforms such as Character.AI and Replika. Many users engage in romantic relationships with these AI systems, which can provide emotional support but also present risks of addiction and long-term psychological effects, particularly for younger individuals.

Calls for a Clear AI Strategy

IPPR argues that current AI policies focus too narrowly on accelerating adoption or mitigating risks, without establishing clear objectives for its societal role. The organisation is calling for a “new politics of AI,” where policymakers, businesses, and the public collaborate to define specific goals for AI deployment.

The upcoming Paris AI Action Summit presents an opportunity for governments to shift towards mission-based AI policies. IPPR suggests that AI innovation should be directed towards solving critical challenges, such as improving healthcare, addressing climate change, and enhancing education.

A mission-based approach, according to IPPR, would involve setting clear policies, defining tax and regulatory frameworks, establishing measurable targets and funding mechanisms, and ensuring effective oversight.

Carsten Jung, head of AI at IPPR, said, “AI capabilities are advancing at breath-taking speed. The launch of ‘AI agents’ shows AI is different from past technologies. It is not merely a tool – it is an actor. AI technology could have a seismic impact on economy and society: it will transform jobs, destroy old ones, create new ones, trigger the development of new products and services and allow us to do things we could not do before.”

He added that while AI presents significant opportunities, its potential must be harnessed to serve wider societal needs.

“Politics needs to catch up with the implications of powerful AI. Beyond just ensuring AI models are safe, we need to determine what goals we want to achieve. This demands democratic debate and close scrutiny of how AI is deployed. The public will want to be involved in setting clear missions and boundaries. The promise of AI to tackle some of humanity’s biggest problems is tantalising – we all have a stake in directing and achieving it.”