The UK government’s blueprint to turbocharge the country’s AI capabilities, announced today (13 Jan), forms a cornerstone of its mission to increase the country’s growth and productivity.
The three-pronged plan comprises strengthening the UK’s business environment and technology infrastructure, boosting AI adoption across public and private sectors and keeping ahead of emerging technology.
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Designated AI Growth Zones across the country will have access to expedited planning approvals for rapid data centre construction which the government hopes will attract foreign investment and create technology ecosystems built on improved compute power.
The first of these will be in Culham, Oxfordshire, close to the UK’s Atomic Energy Authority, and will serve a testing ground for sustainable energy research to accommodate the power requirements of rapid AI development.
The plan to boost AI adoption across public and private sectors includes a digital centre of government established within the Department of Science, Innovation and Technology (DSIT).
The government says it will “revolutionise how AI is used in the public sector to improve citizens lives and make government more efficient. It will scan for new ideas, pilot them in public sector settings, then scale them as far as they can go.”
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By GlobalDataPrime Minister Starmer has personally written to his entire Cabinet, tasking them with driving AI adoption and growth in their sectors, and making that a top priority for their departments, according to the announcement.
According to GlobalData principal analyst Gavin Sneddon, there are significant opportunities for increased productivity outlined in the blueprint which appear to be a lot more than just AI lip-service.
“However practical delivery will depend on wider considerations such as the general culture, processes and skill set of the relevant public sector organisations responsible,” said Sneddon who noted that the initiative’s specific recommendations for AI adoption across the public sector have both the breadth of vision and policy detail necessary to deliver real results if successfully implemented.
“There are many well established use-cases within the UK public sector where AI has delivered clear value, including for example quickly identifying vulnerable people from scanning letters to the Department of Work and Pensions, and reducing time producing documentation in health and local government,” said Sneddon.
“In order to deliver AI adoption successfully the Prime Minster will need more than simply political leadership from the top (although this is certainly necessary),” he said.
Other critical success factors include effective regulatory frameworks and guidance, governance best practice, and training public sector staff. “A culture of collaboration and innovation is also necessary and cultural change, where required, is not something which happens overnight,” said Sneddon.
In addition to AI adoption across the public sector, the plan also includes the creation of a new team tasked with staying ahead of emerging technology. According to GlobalData principal analyst Isabel Al-Dhahir, embracing emerging technology is crucial for national agendas, and the announcement is a positive development for the UK’s struggling economy.
“With a rich history in quantum computing and AI research, the UK is in a favourable position to make significant advancements. However, it should be noted that the Labour government shelved £1.3bn in funding for AI and supercomputing technologies in mid-2024. Therefore, the announcement alone may not be enough to instill trust. Tangible progress must be demonstrated to gain credibility,” she said.
Indeed, despite pulling funding for The University of Edinburgh’s $800m exascale supercomputer as incoming government in August 2024, the Labour government’s AI blueprint includes building a brand-new supercomputer to increase compute capacity by twenty-fold by 2030.
Wide acknowledgement that AI will be increasingly linked to national growth and productivity has meant more focus on technology policy. Robert Lacher, founding partner of the UK’s Visionaries Club firmly believes that future GDP will be shaped by technology, defining Europe’s competitiveness and global standing in a shifting world order.
“AI offers Europe a vital opportunity to close the productivity gap with other regions and take the lead in transformative sectors like manufacturing and defence. It’s encouraging to see Starmer’s government doubling down on AI infrastructure to drive growth and efficiency, with a focus on the application layer where Europe can excel. Let’s hope this ambition translates into action—and sparks the rise of a new generation of AI category leaders in the UK,” said Lacher.
But Imran Ghory, General Partner at the UK’s Blossom Capital cautions: “There’s no doubt Europe’s next tech giants will be built on AI but too much of what we’re seeing right now is AI theatre. If the UK’s leading AI clusters – London, Oxford and Cambridge – are to keep up with Paris and Zurich, never mind Silicon Valley, then we need to give entrepreneurs the support to take their research into the real-world.”
