Investments in cutting-edge technologies such as artificial intelligence (AI) exhibit a significant bias towards the “golden triangle” encompassing Oxford, Cambridge, and London in England, potentially exacerbating existing regional disparities, as per research findings.
While government officials have committed to bridging the gap between the best and worst-performing regions to promote national equality, the Institute for the Future of Work (IFOW) suggests that advancements in generative AI and automation could play a pivotal role in achieving this objective.
A recent study by the think tank introduces a novel “disruption index” revealing a concentration of funds for high-tech advancements in England within a limited geographical area primarily situated in the southern and eastern parts of the country.
The report highlights the repercussions of directing attention and resources towards a few select regions on the economic prospects of the larger, overlooked areas in England.
Notably, both public and private sector investments have displayed a similar trend of favoring geographically concentrated businesses, leading to a tightening effect on the overall distribution of resources.
Bertha Rohenkohl, the lead author of the study, emphasized the disparity in hi-tech investments, noting the disproportionate focus on specific regions such as inner London, the home counties of Berkshire, Buckinghamshire, and Oxfordshire, and East Anglia, which hosts the tech hub of the University of Cambridge.
The landscape of employment is rapidly evolving with the integration of automation and advanced language models like ChatGPT, reshaping various roles from autonomous delivery services to AI-powered tools assisting legal professionals in navigating complex regulations.
Economists speculate that these technological advancements, akin to “general function technologies,” have the potential to revolutionize the economy, akin to historical milestones like the advent of electricity or railway systems.
Professor Philip McCann from the Productivity Institute at Manchester University stressed the imperative for governmental intervention to ensure an equitable distribution of the benefits arising from these transformative technologies.
McCann attributed the skewed investment patterns in the UK to centralized political power dynamics, advocating for decentralization of employment and skill policies to empower regional economies in adapting to the technological revolution.
The researchers meticulously compiled data on investment locations, encompassing venture capital, research and development activities, and new patents. While the data is primarily up to 2020, recent trends suggest a persistent skew towards certain regions, fueling concerns of escalating inequalities in the future.
Moreover, the report introduces a “readiness index” to evaluate regions based on their preparedness, encompassing factors such as skill availability and infrastructure to support high-tech investments, hinting at the potential to mitigate existing regional disparities.
In response to these challenges, the Labour party has pledged to harness AI for the collective benefit of society, emphasizing the need for a strategic approach to leverage technological advancements in addressing regional inequalities if they assume power after the general election.
