Government announces billions worth of AI investment and thousands of new jobs across UK

The Department for Science, Innovation and Technology (DSIT) has announced billions worth of additional AI investment which it says will drive thousands of new jobs across the UK.

As part of the new package of AI reforms and investment, Vantage Data Centers and Microsoft are working with the government to develop another 'AI Growth Zone'.

These regional zones are designed to drive innovation, create high-skilled jobs, and strengthen the UK's position as an "AI leader".

The new South Wales AI Growth Zone will receive £10 billion of investment, which the technology department said would unlock "at least 5,000 jobs", including in industrial heartlands like the former Ford Bridgend Engine Plant.

Additionally, each AI Growth Zone across the UK will receive £5 million government funding to boost business adoption and support the development of AI skills for local workers.

These zones will include data centres housing billions of pounds of hardware, with the government's goal to see British chips deployed alongside established vendors.

As part of the new measures, venture capitalist James Wise will chair the Sovereign AI Unit, backed by almost £500 million in investment to help build and scale AI capabilities in Britain.

The unit, which brings together government, industry and investors, aims to become the "go-to fund" for high potential UK start-ups and scale-ups.

The government said that it will also act as a “first customer” for promising UK start-ups which are building high-quality AI hardware products but currently struggle to get off the ground without investment. This commitment is being backed by up to £100 million of funding.

A set of new AI ambassadors will include Nobel prize winning British Massachusetts Institute of Technology (MIT) economist and former chief economist of the International Monetary Fund (IMF) Simon Johnson,

The government added that Monzo co-founder and Y Combinator general partner Tom Blomfield will play a role championing British start-ups to scale up and attract talent and investment, while Google DeepMind VP of research Raia Hadsell will "champion the UK’s place at the forefront of AI innovation and security."

More free compute will be offered to British researchers and start-ups so they can train new AI models and deliver scientific breakthroughs, with a process to spend up to £250 million on compute being launched.

A new strategy is also being unveiled to make sure AI "supercharges scientific discovery", backed by up to £137 million in government funding.

Its first goal will be focused focus on harnessing AI to speed up the research of new drugs and treatments.

The DSIT said international companies are also hosting new centres in the UK, whilst British companies are increasing investment – with £24.25 billion in private investment committed in the past month.

"The backing by international investors today is a vote of confidence in the UK – and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings," said secretary of state for science, innovation and technology, Liz Kendall. "This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change."



Share Story:

Recent Stories


The future-ready CFO: Driving strategic growth and innovation
This National Technology News webinar sponsored by Sage will explore how CFOs can leverage their unique blend of financial acumen, technological savvy, and strategic mindset to foster cross-functional collaboration and shape overall company direction. Attendees will gain insights into breaking down operational silos, aligning goals across departments like IT, operations, HR, and marketing, and utilising technology to enable real-time data sharing and visibility.

The corporate roadmap to payment excellence: Keeping pace with emerging trends to maximise growth opportunities
In today's rapidly evolving finance and accounting landscape, one of the biggest challenges organisations face is attracting and retaining top talent. As automation and AI revolutionise the profession, finance teams require new skillsets centred on analysis, collaboration, and strategic thinking to drive sustainable competitive advantage.