Press Story

AI could deepen inequality, concentrate power and disrupt jobs without intervention
Ministers urgently need to spread the benefits as industry grows
Think tank calls for sovereign AI fund to share economic gains with the public

The UK government risks being boxed in by AI backlash if they don’t share the benefits of the technology with the public, according to a new report from IPPR.

The report warns that current policy is too narrowly focused on accelerating AI growth, while failing to articulate what it would actually look like for AI to improve most people’s lives.

Public concern about AI is rising sharply, with the technology now seen as one of the biggest global risks. A growing anti-AI coalition is also taking shape, spanning protests over extreme risks, copyright disputes, children’s safety, and movements such as ‘QuitGPT’.

With rapid technical advances meaning AI’s economic and social impacts are no longer theoretical, and with significant labour market disruption expected in the next twelve months, the political stakes are rising fast.

Without decisive intervention, the report argues, AI risks concentrating economic power in a handful of tech firms, widening inequality, and replacing jobs faster than new ones are created.

The authors also warn that risks are becoming harder to manage. As AI systems grow more advanced, safety testing is becoming less reliable, with models increasingly able to evade evaluation processes.

Rather than choosing between uncritical “AI acceleration” and outright resistance, IPPR calls for a new approach: “AI directionism” — where government actively steers the development and deployment of AI towards clear public benefits.

This would include shaping markets, directing investment, and setting clear priorities for how AI should be used in areas such as healthcare, education and public services.

To do this, the government must take a far more active role in shaping it for public benefit. IPPR recommends:

Redistributing windfall gains from Sovereign AI investments, back to the public
Deploying AI engineers to schools, hospitals and local government to experiment with where AI can improve outcomes
Reforming tax and subsidy schemes, so firms are rewarded for raising worker productivity rather than automating roles
Strengthening competition enforcement to prevent excessive concentration of power in the AI economy

Carsten Jung, associate director at IPPR, said:

“We don’t have to be passengers in the AI revolution, we can be drivers. Right now, policy is focused on speeding up AI adoption, but not on where it’s taking us. Without a clearer direction, we risk ending up with more inequality, more concentrated power, and benefits that never reach most people.”

Roa Powell, senior research fellow at IPPR, said:

“People are increasingly worried about AI, and for good reason. If governments can’t show what AI is for and how it will improve lives, that concern could quickly turn into outright opposition. The task now is to make AI work for the public, not just for a handful of companies.”

ENDS

Roa Powell is available for interview

CONTACT

Liam Evans, head of news and media: 07419 365 334 l.evans@ippr.org

David Wastell, director of news and communications: 07921 403651 d.wastell@ippr.org

NOTES TO EDITORS

Advance copies of the report are available under embargo on request
IPPR (the Institute for Public Policy Research) is the UK’s most influential think tank, with alumni in Downing Street, the cabinet and parliament. We are the practical ideas factory behind many of the current government’s flagship policies, including changes to fiscal rules, the creation of a National Wealth Fund, GB Energy, devolution, and reforms to the NHS. As an independent charity working towards a fairer, greener, and more prosperous society, we have spent almost 40 years creating tangible progressive change - turning bold ideas into common sense realities. www.ippr.org