One in three UK businesses are planning to invest in automation as a priority in the face of staffing shortages, according to new research by banking firm HSBC.
A survey of 670 British firms found that 33% of businesses are planning to focus capital expenditure on automation, with those most concerned over recruitment likely to have it high up on their agenda.
The report showed that 40% of companies feel negatively about their staffing levels and availability.
The findings could add to fears over the rise of automation and its impact on demand for workers.
Nearly a third of jobs in the UK could become redundant due to automation and changing workforces by 2030, according to a study from Arden University.
Its research found that over half (56%) of jobs are set to become extinct in the transport and storage industry, followed by 45% of roles in manufacturing, 44% across wholesale, retail, and repair of motor vehicles, 37% in administration and support services, and 32% in public administration and defence, social security/financial and insurance services.
Carl Lygo, chief executive and vice chancellor at Arden University said: “The transportation and storage, manufacturing and wholesale and retail sectors account for 28% of the UK workforce – meaning 4.2 million jobs are now at risk of becoming outdated and eradicated in the hands of automation. ”
But HSBC said the push toward automation to offset skills shortages will see firms adapt to survive.
James Cundy, HSBC UK’s managing director and head of mid-market corporate banking and structured finance, said: “Corporates that have shown great agility in recent years have not just survived the multitude of growth challenges in recent years but have also thrived.
“The research shows that infamous entrepreneurial spirit of UK businesses continues to lead them to invest, innovate and re-define their growth ambitions.”
Its survey also suggested that many UK businesses will increase spending and investment despite current cost pressures, with 45% of those polled reporting that they expect to increase capital expenditure by 9% in 2022.
What’s more, a separate study, commissioned by Yell, found that UK businesses could save more than £29,000 per year by adopting AI technology, including chatbots and automated financial reporting.
However, Yell’s report included a potential cause for concern, as it found that 67% of UK business leaders were concerned that an increase in the use of automation would lead to significant job losses.
“It seems we are on the verge of another revolution with AI, with the time-saving and money-making capabilities of the technology being an absolute game-changer,” said Claire Miles, CEO of Yell.
“The responsibility is now on business leaders of the world to ensure that any form of artificial intelligence is implemented properly, with the right security measures to alleviate trust and privacy concerns, as well as using it effectively and sensitively to create more specialised jobs, as the way we all work changes.’’
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