Charting the Gig Economy - The Impact of AGI on UK Investment and Sectoral Growth
- hello25051
- Jan 14
- 9 min read
Recent reports on the gig economy and artificial general intelligence (AGI) have sparked renewed interest in AI development in the United Kingdom. The rapid pace of AI development implies a future significant impact on the labour market, particularly within the gig economy and workers economic future.
AGI and the gig economy
The UK gig workers contribute £20 billion to its economy making the UK one of the largest gig economies globally. Wage Indicator content (above) illustrates some statistics for popular employee UK job platforms such as Uber, Deliveroo, People per hour, Fiverr, Upwork, Taskrabbit and Amazon flex for finding staff to complete tasks*1. The COVID-19 pandemic has further accelerated the growth of the gig economy, particularly in sectors like food delivery and online services. While the gig economy offers flexibility and opportunities for many workers, we can recognise that it also faces challenges with international salary competition and labour workforce. The UK gig economy employment sector has been significantly impacted post-Brexit, with several factors.
The impact of AGI on UK work force highlights significant future changes in employment practices and conditions which can affect job security. When discussing the gig economy and AI, we can look at the subject of data centres and UK traditional work structures.
Gig economy - Data Centres
Post-COVID areas in the UK have seen significant growth in data centres, driven by increased demand for digital infrastructure. Key developments include an investment surge; the UK data centre market is projected to grow from approximately £15 billion to £26 billion by 2032, reflecting a robust expansion. Notable investments include a £3.75 billion data centre in Hertfordshire, which is set to be Europe's largest and aims to support the growing economy.*2 With major projects includes increased capacity; major cities like London are expected to see data centre power exceed 1,000 megawatts in the coming years, with investments from big tech companies.
Over 500 operational data centres operate across the UK, including London, Slough, Manchester, and the South East. These facilities, including the planned centre in Hertfordshire, primarily utilize specialized AI and machine learning algorithms for various functions. While Artificial General Intelligence (AGI) is viewed as a potential job creator in data centres, enhancing efficiency and requiring skilled operational roles, very little UK studies researched indicated job losses due to increased AGI use. Many benefits related to efficiency and productivity were noted.
With AGI increasing automation and efficiency, we can see a essential introduction to a continuous professional development environment (CPD) across all job sectors and newer skilling and training for understanding AGI needed to combat job precarity and income disparities. AGI facilitated by employers at work through intelligent platforms can note future risks concentrating power with employers via surveillance and automation.*3
AGI can also be seen as create new opportunities in high skill sectors emphasing the need for CPD and a need for an upskilled workforce.
AI-driven job creation in the gig economy
Between 2022 and 2024 the UK AI sector Total AI related Gross Value Added (GVA)*4 ( an economic metric that quantifies the value added to goods and services produced by a specific producer, industry, or sector within an economy) increased by 57% contributing £2.1 billion to the economy. AI related revenues grew by 34% and the number of AI companies grew by 17%.*5
AI agent intermediaries are on the rise, with many articles highlighting how AI algorithms enhance the matching of workers to tasks, boosting efficiency for platforms like Uber, Deliveroo, and TaskRabbit. Advanced AI could automate tasks currently performed by gig workers, potentially lowering consumer costs but also reducing job opportunities in some sectors. It is essential to monitor feedback and evaluations of AI systems that assess worker performance, as these can influence ratings and job prospects on platforms like Fiverr and Upwork. Additionally, AI optimizes pricing for gig work, impacting worker earnings on services like Uber and Amazon Flex.
While flexibility and autonomy have been attractive features of the gig economy, it is noted that successful sectors—including food and beverage, technology, transportation, entertainment, and logistics—are increasingly utilizing AI-enhanced platforms that still require human oversight and interaction.
Bureaucracy in Artificial General Intelligence
The future role of Bureaucracy in Artificial General Intelligence is varied in research.
Grok 2 X AI, suggests 'Bureaucracy in the context of AGI can be viewed from several angles (regulation, resource allocation, policy making, public trust and engagement, ethical and legal frameworks, risk management, balancing innovation with regulation and international coordination). Grok indicates 'Bureaucracy can potentially slow down progress, create overly restrictive regulation and be outpaced by technological advancements.'
An article titled 'AI for Bureaucratic Productivity: Measuring the Potential of AI to Help Automate 143 Million UK Government Transactions,'*6 draws attention to the critical role of AI in public administration. It discusses how Artificial General Intelligence (AGI) can transform repetitive tasks, enhancing efficiency in areas such as eligibility assessments and fraud detection. The article emphasizes the potential for AI to automate a significant portion of government transactions, which could lead to improved service delivery and reduced bureaucratic burdens.
Essential parameters for successful bureaucratic roles implemented in AGI suggest the need for adaptive, forward-looking, and informed approaches to handle the unique challenges of rapidly evolving AGI. There is ongoing debate regarding AGI's impact on bureaucratic discretion, potentially replacing human judgment with algorithmic decisions. This shift raises concerns about accountability, fairness, bias, and transparency in decision-making processes.
AI-powered tools are therefore being used to streamline administrative tasks, potentially allowing gig workers (and government administration alike) to focus more on their core competencies and ideally increasing platform efficiency.
The Tony Blair Institute for Global Change*7 discusses that AI may prompt more workers to leave existing jobs and start new ones. The growing digital nature of gig work suggests potential future opportunities in virtual environments for disabled workers as well as abled bodied. The UK Government document 'A pro-innovation approach to AI regulation: government response'*8 illustrates the vast UK consultancy sectors involved in the gig economy:
Left Table: AI regulation white paper consultation respondents by sector
Right Table : AI regulation white paper consultation respondents by organisation type
Image Source courtesy: 'A pro-innovation approach to AI regulation: government response' *9
Concerns about AGI and data training arise when we read articles discussing civilian data sharing, consent for data use, and the potential for exploitation.
Meta has updated its privacy policy*9 ( next update due 15th of January 2025) to allow the use of user data from platforms like Facebook and Instagram to train AGI models. On several websites in 2023*10, Automattic, the parent company of Wordpress and Tumblr, planned to sell user data to AI companies such as OpenAI and Midjourney. Users were given the option to opt out of this data sharing, ensuring some control over their content's use in AI training. Reddit Inc. also found itself in a scrap*11 with Open AI last year. Tumblr and WordPress are now following in the footsteps of Reddit by making deals with AI companies rather than battling it out in courts over how their content is used.
We are also witnessing AGI's progress towards superintelligence, evolving into agentic, reason-driven, and self-aware intelligence. With the increasing scarcity of global data sources for developing learning algorithms worldwide, tech and quantum companies are now utilizing synthetic data and implementing self-learning algorithms.*12
Quantum Computers and AI
The UK government has also invested £160 million*13 in a state-of-the-art National Quantum Computing Centre (NQCC). The 12 quantum computers officially opened by Science Minister Lord Vallance on Friday 25 October has a market estimated on the website to be worth $1.3 trillion by 2035. The website mentions :
'Quantum technologies like quantum computers and quantum sensors have the potential to revolutionise many industries, from healthcare to energy. For example, at UKRI’s Quantum Hubs,*14 researchers are already using quantum computers to build ‘neural networks’ (which process data in a similar fashion to the human brain) that could be used to detect fraud, and are building the foundations of a ‘quantum internet’ that will pool the colossal power of quantum computers from across the globe.' Quantum Hubs include University of Glasgow, University of Oxford, Heriot-Watt University, University of Birmingham, University of Cambridge with applications listed on the UKRI Quantum hubs website including:
- the transformation of early disease diagnosis
- seeing the invisible such as gas leaks and hidden objects
- the creation of a ‘quantum internet’
- realising the potential of quantum computing
- resilient position, navigation and timing systems*15
*15 note: ( The UK Government press release dated 2nd of January 2025 mentions a launch for a new high-tech atomic clock for Military personnel that will use ground breaking quantum technology.)
We also note more discussions on AI developed for plant grow; The C words podcast Cannabis series episode 3 and 4 *16 cannabis geneticist and grower Breeder Steve mentions projects utilising AI-powered software that can accurately predict a crop's future growth, health, and yields in agriculture. Additionally, the Royal Horticultural Society (RHS) is planning to use AI to create a knowledge bank of cultivated plants for specific environmental benefits, such as pollination, pollution capture, and water management.*17
Divergence in UK regulations
Post Brexit, The UK has the opportunity to develop its regulatory divergence: an opportunity to develop its framework for the gig economy, potentially adding value with its investment in future AGI and Quantum technology to global and EU standards. This could lead to a unique development path for the UK regulation framework. The Centre for Regulatory Strategy EMEA, Deloitte published a roadmap highlighting the UK's gap analysis on AI regulation from 2024 well into the 2nd quarter of 2025 projecting key regulators to publish more details and guidance around April 2025.*18
Conclusion
As we enter the first quarter, we observe the expansion of AI and AGI's progress toward superintelligence, evolving into agentic, reason-driven, and self-aware intelligence. With AGI's growth in the gig sector and related technologies, ongoing supervision will be essential to balance consumer protection, cybersecurity, and the continuous professional development of workers' skills, alongside advancements in quantum computing, data learning, and data sharing.
AI in 2025 is projected to experience exponential growth across various sectors and technologies. The UKRI, designated as the Quantum Hub for AI technology, has been tasked by the government to 'leverage future investments in AI research to support regulatory skills and expertise'*8. This raises the issue of the same legal framework governing Meta and its privacy policy, where AI used, for example, in neural networks data sharing and consent can possibly be subject to data share or exploitation sans a robust body of AI regulation across all UK sectors of quantum projects.
The role of AGI in education, particularly through the sharing of official textbooks and humanities documents, can support educational laws and regulations in developed countries. For instance, Germany has observed a decline in native language learning and the availability of traditional books in schools. Enhancing access to learning resources globally could prove beneficial in addressing these challenges.
The UK Government document 'A pro-innovation approach to AI regulation: government response'*8 mentions 'AI regulation will only work within a wider ecosystem that champions the industry. In 2023, the government committed over £1.5 billion to build public sector supercomputers, including the AI Research Resource and an exascale computer. We [the UK] are also working closely with the private sector to support investment, such as Microsoft’s announcement of £2.5 billion for AI-related data centres in November 2023. The £80 million investment in AI hubs that we are announcing [February 2024] will enable AI to evolve and tackle complex problems across applications from healthcare treatments to power-efficient electronics. The government is also conducting a wider review of the UK AI supply chain to ensure we maintain our strategic advantage as a world leader in these technologies.'*8
Monitoring key developments, such as surges in UK investment and the activities of its regulatory bodies alongside the EU AI framework, remains ongoing. With the global depletion of data, we are advancing toward superintelligence by utilizing synthetic data and implementing self-learning algorithms. This evolution of AGI creates agentic, reason-driven, and self-aware intelligence. Additionally, we are examining the growth of the UK's healthcare, agriculture, and education sectors and their associated technologies.
We encourage prioritizing the enhancement of the UK's gap analysis on AI regulation and developments that will affect the rapidly growing AGI sector within the gig economy. Additionally, we should leverage AGI to source the key regulations across all sectors and continue to remain adaptive, forward-looking, and well-informed in the expanding UK technology sector.
Appendix:
wage indicator diagram
Data Centre
Birmingham University 'Artificial intelligence, gig economy and precarity'
Gross Value Added (GVA) Definition
Gov UK- Artificial intelligence sector study 2023 (published 23 Oct 2024)
'AI for Bureaucratic productivity; measuring the potential of AI to help automate 143 million UK government transactions.'
Tony Blair Institute for Global Change
Gov UK - 'A pro-innovation approach to AI regulation: government response' ( published 6th February 2024)
Supplemental Meta Platforms Technologies Privacy Policy
Automattic Article Links
Reddit Article link
Research - Gov UK, 'Artificial Intelligence sector study 2023'
UKRI- Five hubs launched to ensure the UK benefits from quantum future
UKRI Quantum Hubs
Gov UK Press Release - secret lab develops atomic clock using quantum technology
The C Word Podcasts (also available on youtube and spotify)
RHS and AI
EMEA Deloitte, 'The UK’s framework for AI regulation'
Comments