7.2% of the UK’s GDP is contributed by Information and Communication Technology. The contribution is driven by close to 2 million technology workforces, mostly concentrated around London and Edinburgh. Among the growing sub-sectors, Technical Consultancy also covers the projects that a Management Consultant advises on, post-MBA, that contributes to the largest share (~70,000) of all technology jobs.
2022 brought in £29.4 billion – 3 times more in funding than 2021. Among the share of the fund, Venture Capital funding was close to £9 billion – outside London and around the Southeast region of the UK. The robust funding contributed to the rise of 29 unicorns in 2022, and the region is slowly leading among the world’s best entrepreneurial ecosystems, not just for FinTech.
The seeds that the VC ecosystem is sowing in the UK are likely to contribute close to 3% of the GDP – mostly driven by the digital markets by 2030. The strong surveillance and integrated digital experience across the UK’s public spaces and homes have encouraged the consumers to embrace IoT that saw its share increase from 13 million to a projected 150 million in 2024. Among the devices, a surprisingly large contribution is from Consumer Electronics and Consumer Wearables (40% of all IoT).
IMPACT on Technology Industry - Global slowdown
The tech scene in the UK has enjoyed a banner year. Dealroom claims that its companies have raised £29 billion, or 35% of the overall fundraising for European tech, and its VC firms have raised a similarly record-breaking £7 billion in fresh capital. The impact would be around valuation that saw a course correction across top entrepreneurial ecosystems, including London and New York. However, MBA candidates should plan their entry carefully – preferably targeting the 2024 entering class as an economic slowdown is expected in 2024.
IMPACT of AI and Automation
According to estimates, AI could boost the UK economy by an additional £630 billion by 2035, which would result in a 3.9% increase in the Gross Value Added annual growth rate. Although AI and associated technologies shouldn't result in widespread technical unemployment, data indicates that they may well produce significant changes in the UK's employment structure across occupations, industries, and regions. Over the next five years, the consequences might be negligible, but over the following ten to twenty years, they might grow more significant. These technological advancements exacerbate income disparities and favor those with greater skill sets and educational backgrounds. AI could even create a new unemployed demographic from the Technology industry. Business schools in the UK must revise their curriculum to prepare candidates, many of whom are from Technology functions in ICT or the Finance industry, to develop holistic skills that could be relevant for 2030 and beyond.
Read: Top MBA in the UK (2023)
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Reference
impact of AI (UK Govt, PWC)
Impact of tech slow down (Sifted, TechMonitor)
