Designed specifically for local authorities, FarrPoint's Local Economy AI Assessment, will help councils understand how AI is going to impact their region. It identifies which local groups and jobs are most at risk and in need of the greatest support, as well as making recommendations on which sectors would benefit from amplified use of AI.
Author: Matthew Izatt-Lowry, Head of Economics at FarrPoint
Artificial Intelligence (AI) is no longer a future issue. The UK’s Spending Review committed £2 billion to the AI Opportunities Action Plan, boosting compute, R&D, and sovereign tools to drive public sector adoption. A substantial amount of national research has already been conducted on the impact of AI. For example, one (this will open in a new window)study suggested that AI could add £550bn to the UK economy by 2035. However, there is also (this will open in a new window)evidence that up to 8 million jobs across the UK are at risk of being lost to full automation, disproportionately affecting lower-paid, routine work.
As AI continues to evolve, local authorities face an urgent question: How will it affect jobs in our area, and what should we do about it? The current available data on jobs impacted and strategies to deal with AI are national and broad, so they don’t take into account local economic characteristics. The real impacts of AI will vary widely by regions, especially in areas where certain sectors and occupations dominate the local labour market.
FarrPoint’s new Local Economy AI Assessment creates an evidence base to support decision-makers to prioritise actions and aids to secure buy-in from other stakeholders.
It offers an understanding of what the key opportunities are for attracting AI investment in the region. As in previous industrial revolutions, there are always winners and losers. This assessment will highlight any vulnerable groups within your areas that need support in areas such as skills development. It addresses a gap in the understanding of how AI affects a local economy and what the associated opportunities and risks are. This allows local authorities to make evidence-based decisions on prioritising action at a local level to maximise the benefits of AI.
The local analysis is based upon a range of research into occupational and task-based impacts of AI - including a recent (this will open in a new window)study on its impact on the UK labour market - alongside local economic characteristic data, and shows that AI’s impact will be wide-reaching, fast-moving and uneven.
From this point, a series of targeted and actionable recommendations will be developed to guide how local authorities can both maximise the benefits of AI for businesses and provide support to groups most at risk of being displaced by it.
While AI presents opportunities for higher productivity and new forms of work, it also risks deepening inequality and displacing vulnerable workers. Proactive investment in skills, targeted local interventions, and inclusive policy frameworks will be essential to ensuring that AI delivers widespread economic and social benefits.
To learn what FarrPoint’s Local Economy AI Assessment would look like for your region, and how it can help you identify the right challenges and develop solutions that deliver long-term value, get in touch.
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