Government unveils new plan to make UK a global AI leader

Sir Keir Starmer will today present the government's AI Opportunity action plan, with the aim of making the UK a world leader in AI.

The plan includes £14 billion of investment supported by leading tech companies that will help create 13,250 jobs across the UK, the government said.

The prime minister also announced the development of AI growth zones, with the aim of accelerating the construction of AI infrastructure and providing it with the energy needed to power it, starting with Culham and Oxfordshire.

Additionally, the government is also creating a National Data Library to securely unlock the value of public data and support the development of AI, with a view to positioning the UK as a global leader.

“Artificial Intelligence will drive incredible change in our country,” said prime minister Sir Keir Starmer. “From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.”

He continued: “But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.”

Starmer emphasised the transformative role AI can play in driving public sector efficiency and saving administration time that can be reallocated to improving public services.

Speeding up planning consultations for UK construction, faster and more accurate medical diagnoses, reducing administrative time for teachers, and AI analysis of camera footage to improve roads were some of the examples given by the prime minister on the benefits the plans will offer workers.

The government said that the plan bolsters the UK's commitment to becoming a global leader in artificial intelligence, learning from the US and EU approaches to driving innovation and ensuring long-term stability for businesses.

Science, Innovation, and technology secretary, Peter Kyle said:  “This government is determined that the UK is not left behind in the global race for AI, that’s why the actions we commit to will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today. This is how we’re putting our Plan for Change in motion.”     

The plan takes forward the 50 recommendations set out by British entrepreneur and co-founder and chair of Entrepeneru First (EF) Matt Clifford, and comes as three major companies, Vantage Data Centres, Nscale and Kyndryl have committed to £14 billion investment in the UK to build the AI infrastructure the UK needs to develop AI in the UK. In July 2024, Clifford announced he would lead a review of AI opportunities for the new British Labour Government.

Vantage Data Centres, Nscale and Kyndryl investments come on top of the £25 billion in AI investment announced at the International Investment Summit.

Vantage Data Centres – which is working to build one of Europe’s largest data centre campuses in Wales – plans to invest over £12 billion in data centres across the UK – creating over 11,500 jobs in the process.

Kyndryl has announced plans to create up to 1,000 AI-related jobs in Liverpool over the next three years.

AI specialist Nscale has announced a $2.5 billion investment to support the UK’s data centre infrastructure over the next three years, and signed a contract to build the largest UK sovereign AI data centre in Loughton, Essex by 2026.

The International Monetary Fund (IMF) predicts that AI could increase UK productivity by 1.5 percentage points per year if the technology is fully adopted, with an average gain of £47 billion for the UK economy each year for over a decade.

Matt Clifford said: “This is a plan which puts us all-in - backing the potential of AI to grow our economy, improve lives for citizens, and make us a global hub for AI investment and innovation.”

Chintan Patel, chief technology officer at tech firm Cisco noted that despite the promise of AI, the company’s recent AI readiness report revealed that only 10 per cent of UK organisations are fully ready to harness AI’s potential.

“Advances in AI are changing how we live, work and engage with public services, but there are foundational aspects that we must address now – from the infrastructure these models are built on, to the security that is core in ensuring models work as intended and data remains secure, and the skills required in the workforce to truly benefit from this technology,” said Patel.

Adam Pintol, senior cybersecurity consultant at cybersecurity specialist CyberSmart noted that excitement is not what should lead organisations into making a decision that can put security at risk.

“This means that collaboration with the best minds in the private and public sectors should be utilised,” he said. “If we achieve this, there is a genuine reason to be excited."

Sachin Agrawal, UK managing director for tech firm Zoho added that it is important for the UK to understand how AI regulation and data privacy continue to challenge businesses developing and implementing AI systems.

“As businesses take the next steps of AI adoption, fuelled by this landmark policy, they should be guided by the government, regulators and educators under AI frameworks that promote the safe and ethical development and usage of AI systems,” continued Agrawal. 

Andy Ward, SVP International at security service specialist Absolute Security also called for AI to be deployed following security rules.

“Cyber-attacks have long been a case of when, not just if, and with AI positioned to increase the threat volume, taking a proactive approach to building cyber resilience has never been more important,” he said.

Wayne Cleghorn, data protection, cybersecurity and AI partner at law firm Excello agreed that thehas also urged the government must to ensure that safety is at the heart of the push towards AI adoption.

He said: "When talking about AI, economic growth and innovation, we should not make safety the bogey man,” continued Cleghorn.. “All can - and should - co-exist in a virtuous circle. If we are not saying safety first, are we saying unsafety first or high-risk AI poker playing first?”



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