The report states that the rise of OpenAI's ChatGPT and rival solutions such as Google's Bard would mark the “most profound” technology shift in our lifetimes.

It estimates that the economic boost from AI would be equivalent to annual growth of 2.6 per cent, creating £200bn in additional revenues for public services and “turning around the recent growth stagnation”.

The report was produced alongside public policy research agency Public First and estimates that generative AI could save the average UK worker more than 100 hours a year, with this number amounting to 700,000 hours a year in administrative work for UK GPs and teachers.

However, the report did not take into account the loss of some jobs and businesses that could come with the transition to an AI-powered economy. Moreover, the group insisted that the economic benefits and improvements to people’s everyday lives will outweigh the hit on the job market.

Google also backed the need for...