February WorkerTech Roundup

This month we continue our explorations into AI adoption in the workforce, this time looking at a study from Anthropic, the company behind the large language model Claude. Before you ask, this is not a study simply asking the likelihood of job replacements, but instead dives deeper, and reports on the depth and scale of AI usage across a range of sectors.

We’re also bringing you insights from two new publications by the Resolution Foundation, the first looking at the shifting economics of low-paid work and the second looking at how low-income households will cope with the net zero transition.

Lastly, dear readers, we’d like to hear from you. If you have any thoughts on the kind of topics you would like this newsletter to cover, please use the link at the bottom of this newsletter to get in touch!

Until next month,
Aish Moothan
Ventures Manager

AI in the Workforce: Cognitive Overhaul, Physical Lag

A new paper from Anthropic, Which Economic Tasks are Performed with AI? is looking at AI adoption in the US labour market. The key difference between this paper and the (many) that have preceded it is that instead of relying on self-reporting surveys or predictions from experts, it looks at anonymised data from Claude conversations across industries.

It finds that while AI is not yet replacing jobs at large, it is being used in approximately 36% of occupations to enhance at least a quarter of their tasks. AI usage peaks in industries like software development and marketing and shows minimal presence in skilled trades. The study implies that the future holds a growing demand for AI-proficiency in a growing number of jobs, changes in wage patterns where skilled trades experience wage growth over time and the need for policy to ensure AI proliferation benefits working people.

Interestingly, a different paper with a much narrower focus – looking at AI usage within a large R&D lab in the US – found that adoption of the technology resulted in a 44% reduction in scientists’ job satisfaction. Reasons cited by participants were underutilisation of skills and creativity. Despite productivity gains, 82% of respondents reported an overall decline in well-being.

It comes as no surprise that the nature of work is changing, rapidly; it has been since the first demo of Chat-GPT was released at the end of 2022. Several organisations are already looking at how workers can benefit from this change, most notably the Institute for the Future of Work, who recently released results from their inquiry into the impact of AI and automation on the UK labour market (discussed here our January newsletter).

The Government is taking notice as well, having released its AI Opportunities Action Plan last month. It sees UK startups as crucial players in the AI-led transition and pushes for the public sector to pilot AI products and services.

A number companies from the Resolution Ventures portfolio have integrated AI into their products and services for workers, with the goal of harnessing the technology to improve working lives. For example, Valla uses AI to help those experiencing a workplace issue get legal assistance. EarlyBird uses AI voice technology to help those looking to find a job work more effectively with employability providers. If you’d like to get in touch with us or with our portfolio companies, you can contact us here.

Latest insights from the Resolution Foundation 

The shifting economics of low-paid work – The latest report in our Unsung Britain series, Money, Money, Money, highlights a major shift in how lower-income households make ends meet. Over the past 30 years, wages have become a bigger share of income for the poorest households, while social security support has declined significantly. Lone parents and ethnic minority families, in particular, are increasingly reliant on earnings. At the same time, rising costs are taking a bigger bite out of household budgets. As investors, we’re seeing an increasing volume of startups building fintech solutions for the low-paid sector, focused on income volatility, building savings and access to credit.

Net Zero’s costly shift – Our new report The Grass is Greener on the Net Zero Side, explores how the UK’s transition to net zero will reshape household finances. The big picture? By 2050, lower energy costs, cheaper EVs and cleaner heating could save households over £1,000 each year — but only if they can afford the upfront costs to make the switch. So while the transition will bring new jobs and investment opportunities across the green sector, access and affordability will be the key to unlocking scale. Our portfolio company Greenworkx is looking at the skills requirements that will be part of the path to net zero, their platform equips job seekers for green jobs and connects them with employers committed to well-paid, sustainable careers.

Get involved

Week of VocTech 2025 – March 17th – 25th 
Ufi VocTech Trust is bringing back is bringing back its programme of events and activities focused on the adoption of digital technology in vocational education. This is an opportunity to gain insights from industry experts and be inspired by founders changemakers driving a real impact in the UK skills sector.

Our Director of Ventures, Louise Marston will be there, talking about innovation adoption in workforce development (see more below). Further details of the Week of VocTech can be found at www.weekofvoctech.co.uk.

Cracking the Code: Selling innovation and driving adoption in workforce development
Join our Director of Ventures, Louise Marston and the expert panel of investors, founders and buyers she’s chairing to discuss perspectives on the complexities of selling innovation to help workplaces enable skill development. On the panel are:

• Greg Freeman, Founder and CEO at Data Literacy Academy,
• Alexandros Anousis, Global Head of Digital Learning, Ocado Group
• Helen Gironi, Director of Ufi Ventures.

You can register for a spot here.

NoBa Connect Q1 2025
NoBa Capital’s flagship networking event is back next month, with its Q1 edition focusing on changes in people management being driven by AI. It’s free to attend, and tickets are available here.

nvestment from Resolution Ventures 

Apply for direct investment from Resolution Ventures. We accept applications from WorkerTech ventures on a rolling basis. Or you can book a slot in our office hours for an initial conversation.