BoE chief Andrew Bailey warns AI might wipe out jobs like the economic revolution and squeeze alternatives for younger folks

AI could wipe out jobs like the industrial revolution even though it is likely to be beneficial in the long-term, according to the Bank of England governor.

Andrew Bailey played down fears of mass unemployment as the technology takes a greater hold on society and the economy.

But he acknowledged there was likely to be widespread ‘displacement’ and huge numbers of people might need new skills.

In an interview with the BBC, Mr Bailey also warned there is a risk that opportunities for younger workers will be crushed. 

Andrew Bailey played down fears of mass unemployment as AI takes a greater hold on society and the economy

‘As you saw in the industrial revolution, now over time, I think we can now sort of look back and say it didn’t cause mass unemployment, but it did displace people from jobs and this is important,’ he told Radio 4’s Today programme.

‘My guess would be that it’s most likely that AI may well have a similar effect. So we need to be prepared for that, in a sense.’

Mr Bailey said it would likely be ‘a lot easier’ for people looking for employment to secure a job if they had ‘training, education, (and) skills’ around AI in place.

‘We do have to think about, what is it doing to the pipeline of people? Is it changing it or not?’ he said.

‘I think if it’s people working with AI, I’m not sure it will change the pipeline, but I think we’re right to have a have an eye on that point.’

He added AI’s potential to improve the nation’s economy was ‘pretty substantial’, but stressed: ‘How quickly it comes through is another question, history would suggest that it does take some time.’