UNIONS should be given new Treasury-backed powers to prevent AI-based automation of jobs increasing regional inequality, a major three-year study said today.

Nobel Prize-winning economist Christopher Pissarides called for unions to get “digital access, collective rights to information and new e-learning roles” in a series of recommendations by the Institute for the Future of Work (IFOW) think tank.

He said: “The value and potential of trade unions in the governance of AI and automation technologies should be recognised to surface and redress difficult issues, counter information imbalances and help deliver improved outcomes through meaningful partnership working.

“The use of co-designed and developed approaches to skills and capabilities development and e-learning programmes may open up a new and important role for unions in transitions, as unions and members are ‘upskilled’ to manage better transitions.”

The report warned that the AI-based automation of millions of jobs will increase inequality in Britain without urgent government intervention to support small businesses and workers through the transition.

It recommended establishing science centres in regional cities and devolving strategic decision-making to the regions as well.

Ministers were also urged to act in the interest of those who will be made unemployed by the AI transition, in order to prevent skills shortages and declining in worker job satisfaction and wellbeing.

The study criticised the government’s recently published AI Opportunities Action Plan for not considering the “potential of technological transformation to exacerbate national and regional inequalities” across Britain.

“Nor does it address the way in which a package of complementary policy interventions within each region will be needed as part of a co-ordinated plan,” it said, calling on ministers to prioritise “integrated, placed-based growth and capabilities strategie in a more systematic way.”

TUC general secretary Paul Nowak said: “The recommendations in this timely IFOW report demonstrate the vital role of unions in ensuring that everyone benefits equally from the use of AI at work, and they set out how government can ensure this happens.

“It’s crucial that workers are brought to the table and have the opportunity to inform the ways in which AI can support and enhance their roles. 

“Workers and unions need to be actively involved in the development of technology, as well its application and use, because they best understand the requirements of their roles.

“Active consultation and worker participation in the AI-powered transformation of work are essential for sustainable increases in productivity.”