UK Government launches new AI growth plan

The UK Government has launched a new plan intended to boost the growth of the artificial intelligence (AI) sector.

The strategy focuses on the potential for investments into UK businesses to transform their ability to compete on the world stage. The government said over £24bn in such investments was committed to the AI sector in the last month alone.

“This government promised to unlock growth and that is exactly what we are doing,” said Chancellor Rachel Reeves. 

The plan outlines how the UK will act as a “first customer” for promising UK start-ups which are building high-quality AI hardware products like chips. This will be backed by an investment of £100m to support start-ups that currently struggle to get off the ground without significant capital investment, the government said.

In addition to this, venture capitalist James Wise will chair the Sovereign AI Unit. Supported with almost £500m, the unit will be tasked with investing in companies that can help build and scale AI capabilities. The government will also support several “AI ambassadors” who will “help maximise the benefits” of the technology.

The plan also includes a new AI Growth Zone in South Wales, which the government said will create more than 5,000 new jobs for local communities over the next decade.

“Today’s confirmation of our fourth AI Growth Zone is our Plan for Change in action – creating thousands of jobs and unlocking new investment for local communities in the industries of the future, cementing our position as Europe’s leading tech sector,” Reeves said.

In February, then-technology secretary Peter Kyle said he was “excited” about Glasgow’s potential to host an AI Growth Zone, reflecting on the city’s “pioneering” work on technologies like quantum computing.

The announcement comes ahead of the government’s budget next week, where Reeves will announce a new strategy for growing the UK economy. The government hopes that this AI plan will play a part in that, helping to “boost jobs and growth” and highlighting the increasing investment from international companies into UK data centres as a sign of things to come.  

“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 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.”

In September, the world’s most valuable company, NVIDIA, committed £2bn to “catalyse” the UK’s AI startup ecosystem and accelerate the creation of new companies, jobs and globally transformative AI businesses. This was joined by a range of other investments from foreign investors like American technology giant Microsoft.

A new strategy is also being unveiled to develop the use of AI in scientific discoveries like the research of new pharmaceutical drugs. The strategy is backed by up to £137m in government funding and will focus on developing and maintaining the UK's position as a global leader in scientific research.