Unlocking Prosperity

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Unlocking Prosperity: How AI Apprenticeships Can Reshape the UK Economic Landscape!

Dear friend,

The UK's economic landscape has faced a prolonged period of stagnation, spanning a significant 15-year timeframe. This stagnation can be attributed to multiple factors, with one pivotal element being the lack of substantial productivity growth within companies. 

In the past, the UK's labor productivity, measured by Gross Value Added (GVA) per hour worked, experienced an average annual growth rate of 2.2% from 1971 to 2007. Contrarily, spanning from 2011 to 2022, the average growth rate dwindled to 0.6% per year according to ONS.

Did you know that 61% of employment in the UK is generated by small and medium enterprises (SMEs)? This means that they are the engine of the economy, and we need to assist them in becoming more productive. The question arises: How can we propel these enterprises into transformative growth without imposing exorbitant financial burdens? Moreover, how can we simultaneously harness the full potential of emerging technologies?

To answer these questions we should combine artificial intelligence (AI) with apprenticeships. I propose a new solution — the inception of an initiative called the 'automation apprenticeship.' This program is designed to equip apprentices with the knowledge and skills required to leverage generative AI tools to automate SMEs. 

Picture this: David Jones from Aberdeen has just turned 18 and joined the Apprenticeship Automation Program. In the initial three months, before being placed in a company, he learned how to connect tools, utilize APIs, and create advanced prompts. Once assigned to a company, he spent the first month comprehending the company's operations. By the second month, he had already implemented several tools. In the third month, David took the initiative to educate other members of the company about the benefits of his implementations.

David has access to a learning community where everyone shares new implementation techniques, tools, and challenges related to automating processes in their respective companies. David is not alone; he is in contact with the other apprentices in Britain.

Traditional apprenticeships span for many years in one company. In our case, each apprentice gains sector-specific experience by rotating every 3 months to a new company. They will learn the ins and outs of automating processes for a specific sector. From manufacturing to professional services, we could transform the economy.

The overarching goal of the 'automation apprenticeship' is to bolster productivity within SMEs. It endeavors to offer companies a dual advantage — access to cutting-edge tools and a pool of talented apprentices dedicated to facilitating their transformative journey.

Currently, there are 5.5 million SMEs in the UK and they are known to be significant job creators in the economy. By assisting four SMEs in the same sector with one apprentice, we can amplify the impact, which is the core objective of the program. Instead of an apprentice working in a single company, having them contribute to various companies in the same sector while implementing automation tools will yield greater benefits for the economy.

You might ask, why an apprenticeship program? Well, this is one of the key advantages of Britain. It has successfully assisted young people aged 18 to 25 in entering the job market through apprenticeships. However, in recent years, these numbers have declined. In 2022, only 280,000 people were part of the apprenticeship program. That's why we need to take what is already available in the country and boost it. This will be an additional apprenticeship program, not intended to change the way other apprenticeships are conducted. But to create a new model of apprenticeship. It needs a specific goal for the next 10 years: increasing productivity for all small and medium enterprises in Britain. 

I discovered the program when I pursued my master's degree in Lifelong Learning Policy and Management at University College London. One of the most surprising aspects I encountered was how companies were capitalizing on the apprenticeship program. Now, let's take this a step further. Let's elevate what already exists so that every company in Britain can transform with a modest investment. 

On average, an apprentice earns £22,000 per year. What if half of this amount is funded by the government and the other half by companies? This way, companies are aware that they only need to invest for a brief period to transform. This is the key essence of the program. These apprentices serve as a new breed of consultants, more cost-effective than hiring individuals from McKinsey.

Envision a program capable of transforming 10% of SMEs in the UK every year. The blueprint for achieving this ambitious target involves the meticulous training of over 140,000 apprentices annually, requiring a financial commitment of £3 billion per year. 

To serve 140,000 people without incurring another billion in training costs, a new tool, the 'AI Apprentices tool,' needs to be created. This tool, which uses a Large Language Model (LLM), acts as a learning guide for apprentices, picturing an AI girlfriend but for learning about automation, helping them understand their learning patterns and identify optimal learning resources.

Upon launching the Apprenticeship Learning Companion, users enter into an interaction with the AI. This dialogue functions as a dynamic assessment tool, gathering information about the apprentice's educational background, professional experience, personal interests, and career aspirations. 

Based on this interaction, the Companion constructs a personalized learning profile. Subsequently, it suggests customized learning pathways, ranging from online courses, videos, and podcasts publicly available to be tailored to align with the user's specific goals and requirements. 

Imagine the transformative impact of increasing at least 30% per year the productivity of each participating company. The excitement generated by such enhancements has the potential to spark a paradigm shift, ultimately influencing 100% of the country's economic output within ten years. I believe in Britain we need to be bold in our goals, executing with very concrete steps.

This program holds the potential for greater impact than even a supercomputer. It could surpass the impact of merely attracting foreign companies because it will assist companies that typically lack budgets for research and development. This initiative targets companies that usually focus solely on addressing immediate challenges, those that might not be considering the next five to ten years. We aim to provide them with the tools and talent necessary to turn future aspirations into reality. That's what truly excites me about this program.

In essence, the initiative aims to achieve two interlinked goals: augment productivity and create employment opportunities. The fundamental premise is centered on empowering companies to adeptly automate their operations, fostering a future where the symbiosis between human ingenuity and technological advancement propels the nation into a realm of unparalleled growth.

Just imagine the feeling among thousands of young people, knowing that they are changing the country—a new sense of hope that inspires transformation in other areas.

The great thing about the Automation Apprenticeship is that it could be implemented this same year to start reaping the benefits. What are you waiting for? Are you expecting AGI to arrive before transforming UK productivity? Let’s unstuck Britain together.

This essay is part of the TxP Progress prize created between Civic Future and New Statesman Spotlight to spark discussions on how to get Britain moving again. You can find all the info here.

I'd love to hear your feedback on today's newsletter! Is there a specific type of content you'd like to see more of in the future? Since I'll be releasing a new edition each week, I welcome any suggestions or requests you may have. Looking forward to hearing your thoughts!

The Menu Magic is written by Francisco Cordoba Otalora, an entrepreneur living in London.

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