Agentic AI is a game changer for productivity and GDP
As global leaders from the tech world gather for London Tech Week and The AI Summit, the impact of new technologies on the economy will be top of mind as they digest the UK government’s Comprehensive Spending Review and await the publication of the Industrial Strategy and Technology Adoption Review.
This wave of updates will show a clearer course of travel as companies strive for growth amidst a challenging environment of market fluctuations, geopolitical shifts, and evolving customer demands.
Companies are looking for every opportunity to stay ahead and one of the keys to success will be widely discussed by leaders this week - AI.
A new study by the IBM Institute for Business Value found two-thirds of UKI CEOs firmly believe their organisations’ competitive edge will hinge on having a robust generative AI strategy. In fact, 64% of UKI leaders see automation’s productivity gains as worth the significant risk to remain competitive. Smart leaders are taking smart risks that involve strategic experimentation, learning, and incremental innovation to pave the way for larger bets in the future.
To help accelerate AI strategies, businesses are shifting gears and rapidly adopting and scaling AI agents with success defined by clear, tangible business results that drive new efficiencies and cost savings.
Agentic AI is revolutionising decision-making, delivering predictive insights that allow businesses to anticipate change before they lift a finger.
So far, interacting with powerful enterprise systems and complex interfaces has required specialised knowledge. What’s interesting is that AI will lower the barrier to accessing the power of AI.
Agents, built and managed in solutions like IBM’s watsonx Orchestrate, can leverage AI to automate complex tasks, gain insights and drive productivity across functions like HR, finance, IT, and customer service. This offers a potential game changer across the economy, and therefore UK GDP.
CEOs are already leading the way in deploying generative and agentic AI in their everyday lives to boost productivity and enhance customer service. Two NHS Trusts, University Hospitals Coventry and Warwickshire, and The East and North Hertfordshire, recently implemented conversational AI platforms, allowing staff to focus on more valuable tasks, leading to better patient care and higher staff satisfaction. In the banking space, NatWest customers using the Cora+ app, an intelligent virtual agent, have experienced more intuitive, conversational customer experiences. These results, where individuals can experience the benefits of AI in daily life, show its true transformational potential.
With the current skills gap, CEOs see strategic leadership and specialised talent as essential to unlocking AI value. The study found that UKI CEOs say roughly one-third of the workforce will require retraining and reskilling over the next three years. On top of this, nearly 70% say their organisation will use automation to address skill gaps.
Leaders must anticipate and redefine roles and skills. One way to address this is through skilling programs to equip teams with digital literacy, strategic skills and ethical guidelines. Understanding the technology and solutions is critical to unlocking AI productivity gains.
A huge boost to national GDP is within our grasp if companies are quick to adopt the responsible use of agentic AI, backed by supportive government policy. This is the engine that will help drive productivity - in every organisation.
Authors
Leon Butler
Leon Butler is the Chief Executive of IBM UK and Ireland
