New Report Uncovers Large Businesses in the UK
Could Save 7.9 Billion Employee Hours Per Year Through the Use of
AI
LONDON, July 16, 2024 /PRNewswire/ -- Workday, Inc
(NASDAQ: WDAY), 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) is having as well as its future potential. With
the study revealing how a potential £119 billion windfall in
productivity for UK enterprises may be unlocked thanks to
AI1, 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.2
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, large businesses in the UK could save up to 7.9
billion employee hours through the use of AI. Individual business
leaders could save 1,117 hours per year 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 each
year, 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 has the potential to shift the
paradigm," said Daniel Pell, vice
president and country manager, UKI, Workday. "However, AI can only
reach its full potential if it is trusted and aligned to business
outcomes, 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 being genuinely productive for 5.8 and 5.9 hours
respectively, leaving over a quarter of the day unproductive and
not generating business 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. With over 10 million employees in large
businesses across the UK, £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.
Methodology:
The survey was commissioned by Workday and conducted among 750
employees and 500 business decision makers in the UK from large
enterprises with 250+ employees. The interviews were conducted
online by Sapio Research in March and April
2024 using an email invitation and an online survey.
Results of any sample are subject to sampling variation. The
magnitude of the variation is measurable and is affected by the
number of interviews and the level of the percentages expressing
the results.
For the study of employees, the chances are 95 in 100 that a
survey result does not vary, plus or minus, by more than 3.6%
percentage points from the result that would be obtained if
interviews had been conducted with all persons in the universe
represented by the sample. For the study of business decision
makers, the chances are 95 in 100 that a survey result does not
vary, plus or minus, by more than 4.4 percentage points from the
result that would be obtained if interviews had been conducted with
all persons in the universe represented by the sample.
About Workday
Workday is a leading enterprise platform that helps
organisations manage their most important assets – their people and
money. The Workday platform is built with AI at the core to help
customers elevate people, supercharge work, and move their business
forever forward. Workday is used by more than 10,500 organisations
around the world and across industries – from medium-sized
businesses to more than 60% of the Fortune 500. For more
information about Workday, visit www.workday.com.
Forward-Looking Statements
This press release contains forward-looking statements
including, among other things, statements regarding Workday's
plans, beliefs, and expectations. These forward-looking statements
are based only on currently available information and our current
beliefs, expectations, and assumptions. Because forward-looking
statements relate to the future, they are subject to inherent
risks, uncertainties, assumptions, and changes in circumstances
that are difficult to predict and many of which are outside of our
control. If the risks materialise, assumptions prove incorrect, or
we experience unexpected changes in circumstances, actual results
could differ materially from the results implied by these
forward-looking statements, and therefore you should not rely on
any forward-looking statements. Risks include, but are not limited
to, risks described in our filings with the Securities and Exchange
Commission ("SEC"), including our most recent report on Form 10-Q
or Form 10-K and other reports that we have filed and will file
with the SEC from time to time, which could cause actual results to
vary from expectations. Workday assumes no obligation to, and does
not currently intend to, update any such forward-looking statements
after the date of this release, except as required by law.
Any unreleased services, features, or functions referenced in
this document, our website, or other press releases or public
statements that are not currently available are subject to change
at Workday's discretion and may not be delivered as planned or at
all. Customers who purchase Workday services should make their
purchase decisions based upon services, features, and functions
that are currently available.
1 Calculated using median respondent
salaries, expected time savings achieved with AI and UK government
estimates of total workers at businesses with 250+ employees
2 How can the UK revive its ailing
productivity?, Economics Observatory, 2024
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