AI Could Unlock £119 Billion Worth of Productivity Annually Across UK Large Enterprises

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.

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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