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March 4, 2025

IFOW March 2025 Newsletter | The View from IFOW

As we settle into what is already shaping up to be a transformative year, we’re seeing momentum build across the Institute’s projects and policy development work, following launch of the IFOW’s Pissarides Review, supported by the Nuffield Foundation.  

Government departments at all levels and major firms, looking to be leaders in responsible AI adoption, have already shown they are keen to deploy our cutting-edge findings and recommendations, which come at a critical time for the UK. At a local level too, we have a number of projects building out of the Review focused on working with young people, working to better understand motivations and barriers as people approach the labour market. As part of our follow-up work and the development of practical solutions, we’re listening to young people and place-based skills organisations directly, as Associate Director, Kester Brewin did with Spear in Bournemouth last week.  

'The Gen Z Factor: Reinventing Work Together' event in Bournemouth.

This is a key part of IFOW’s work to support the development of local innovation systems and deliver more systematic, human-centred approach to our disjointed skills system, which currently serves neither employers nor job seekers.

Skills England is an opportunity to put this right, with the establishment of an ambitious remit and the introduction of a ‘capabilities’-based approach to skills development. We offer our warm congratulations to Phil Smith OBE, who’s been appointed Skills’ England’s new Chair and a Deep Dive that takes a closer look some new place-based projects,  Last month our newsletter focused on global challenges of AI at the Paris Summit. This time, we’ve gone ‘global to local’ by zooming in to Cornwall, Bournemouth and Grimsby and exploring how technology can also be used to understand and respond to some very pressing needs.  

Anna and IFOW Team

Deep Dive - Bridging the Motivation Gap: Preparing Young People for a Technology-Driven Future

Springing from work in our Pissarides Review, we have begun a partnership with the EY Foundation focused on the critical challenge of helping young people from low-income backgrounds access good jobs through this period of technological transformation. Our research reveals that, as automation and AI transform the workplace, skills like critical thinking and problem-solving are increasingly valued over basic technical knowledge. This shift could risk further disadvantaging young people unless we take deliberate action to prepare them for these changes.

At the heart of this work is the role of intrinsic motivation - being driven by interest and satisfaction rather than external rewards. In this project, we are exploring how intrinsic factors like autonomy, mastery, and purpose can help develop the capabilities young people need to thrive in good jobs that may require more cognitive discretion, creativity and complex problem-solving.

A series of in-person design workshops, our critical analysis and an in-depth literature review will support the development of practical insights to guide interventions for firms, schools and training providers. This project aims to support young people envision and ‘design’ their own work futures, creating new pathways to fulfilling work that leverages their unique perspectives, untapped creativity and entrepreneurial energy.  

As the ringfencing for of skills budgets is lifted, this pilot project should be valuable to help set new agendas, as part of a major reorientation towards the proactive development of human capabilities.

Interesting Reads

Winners and losers of generative AI: Early Evidence of Shifts in Freelancer Demand

This paper examines how ChatGPT has changed the demand for freelancers in jobs where generative AI tools can act as substitutes or complements to human labour. Analysis reveals that labour demand increased after the launch of ChatGPT, but only in skill clusters that were complementary to or unaffected by the AI tool, suggesting a shift toward more specialised expertise for freelancers rather than uniform growth across all complementary areas.

Exploring AI Sandboxes: A New Approach to Innovation and Governance

The Datasphere Initiative has released a comprehensive report titled "Sandboxes for AI: Tools for a New Frontier,"exploring the pivotal role of regulatory sandboxes in AI development and governance. The report offers a structured five-phase approach for implementing AI sandboxes: design, planning, execution, communication and engagement, and closure and evaluation. This framework aims to balance technological advancement with ethical oversight, fostering responsible AI innovation globally.

Algorithmic Management in the Workplace: Navigating Opportunities and Challenges  

The Organisation for Economic Co-operation and Development (OECD) has released a comprehensive working paperthat examines the integration of AI-driven systems in managing workers and its multifaceted impact on labour markets. The paper probes how algorithmic management can enhance efficiency and productivity by automating tasks traditionally handled by human managers, such as performance evaluations and task assignments.  

Designing Public Compute for Societal Benefit  

The Ada Lovelace Institute released a report titled "Computing Commons: Designing Public Compute for People and Society," authored by Matt Davies and Jai Vipra. This report examines 'public compute' initiatives—government-funded programs that provide access to computational resources such as hardware, cloud services, or public supercomputing facilities. The report serves as a guide for policymakers aiming to democratise access to computational power and foster inclusive AI development.  

Building a Roadmap for AI Skills in the UK

As AI continues to transform the world of work, the UK urgently needs a cohesive skills strategy to ensure workers are equipped for the future. The British Academy’s latest report explores how to develop a roadmap for AI skills policies, aligning closely with the vision set out in the Pissarides Review.  

Both reports emphasise the need for a human-centred approach to automation—one that ensures skills development, technological change, and economic policy evolve together to create good jobs for all.  

Tech Policy Conference (Tuesday, 10 March 2025, 8:45 AM –6:00 PM, London)

TechUK will be hosting its annual Policy Conference to bring together senior policymakers from across Westminster, Whitehall and beyond to discuss the biggest challenges facing the sector and the most pressing topics for the industry. This year’s fourth edition will largely focus on growth, with sessions covering topics such as Artificial Intelligence, workplace technologies and digital infrastructure throughout the day.

Register here.

Health and Wellbeing at Work 2024 (Tuesday, 11 – 12 March 2025, 8:30 AM – 5:00 PM, NEC Birmingham)  

The Health and Wellbeing at Work conference is dedicated to workplace health, well-being, and performance. This event will bring together HR professionals, occupational health experts, and business leaders to explore strategies for creating healthier, happier, and more productive workplaces.

With expert-led sessions, panel discussions, and hands-on workshops, the conference will cover key topics such as mental health, employee engagement, hybrid work challenges, and leadership well-being.  

Purchase tickets here.

Big Data and AI World 2025 (Wednesday, 12 -13 March 2025, 9:00 AM – 5:00 PM, London)  

Big Data & AI World will be bringing together industry leaders, innovators, and experts to explore the future of artificial intelligence and data-driven transformation.

This event will feature insights, case studies, and live demos on how AI and big data are reshaping industries, from business and finance to healthcare and beyond. Attendees can expect keynotes from leading voices in AI, panel discussions on ethical AI and data governance, and hands-on workshops showcasing the latest technological advancements.  

Register here.  

Innovation Accelerators – Two Years On (Monday, 17 March 2025, 11:30 AM – 12:30 PM, online)  

Two years after their launch, how have the UK’s Innovation Accelerators driven local economic growth and R&D investment? This event, hosted by Centre for Cities, will assess the progress of these city-led innovation programmes, backed by a £100 million investment in Greater Manchester, the West Midlands, and Glasgow.

Bringing together policymakers, business leaders, and researchers, the discussion will explore the impact on regional economies, the challenges faced, and the next steps for strengthening innovation-driven growth across the UK.  

Register here.  

Week of VocTech (Monday, 17 – 21 March 2025, 12:00 PM into evening, London)

Week of VocTech 2025 is a flagship event hosted by Ufi VocTech Trust, bringing together experts, educators, and innovators to explore the role of technology in vocational education and skills development. The week-long programme features panel discussions, workshops, and networking opportunities focused on making learning more accessible, inclusive, and future-ready.

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