UK government unveils AI-fuelled industrial strategy

The Labour government has revealed a comprehensive 50-point plan to leverage artificial intelligence (AI) in order to enhance efficiency and drive growth throughout the UK economy.

The AI Opportunities Action Plan includes innovative measures to establish designated AI Growth Zones, which aim to expedite planning permission for AI-driven initiatives.

The International Monetary Fund (IMF) projects that embracing AI to its fullest potential could increase productivity by up to 1.5 percentage points annually. If fully implemented, these advancements could potentially add an average of £47bn to the UK economy each year over the course of a decade.

The government views its AI strategy as a transformative approach to enhancing public services and putting more money back into the hands of citizens.

Prime Minister Keir Starmer, announcing the AI Opportunities Action Plan, stated: “Artificial intelligence is poised to bring about remarkable changes in our nation. However, the AI industry requires a supportive government that seizes opportunities rather than letting them slip away. In a competitive global landscape, we must act swiftly and decisively to secure our position as a leader.”

Chancellor Rachel Reeves characterized the action plan as “the government’s contemporary industrial strategy in action.”

Science, Innovation, and Technology Secretary Peter Kyle emphasized: “This government is resolute in ensuring that the UK remains at the forefront of the global AI race. Our commitments are designed to distribute the benefits of AI advancements across the UK, ensuring that all citizens can enjoy the rewards of our investments. This is the commencement of our Plan for Change.”

The inaugural AI Growth Zone is set to be established in Culham, Oxfordshire, hosting a new supercomputer that will significantly enhance public compute capacity to support AI initiatives. The government is also founding a dedicated team to bolster the UK’s sovereign AI capabilities as part of a decade-long plan to bolster computing and AI expertise.

In addition to enhancing sovereign AI capabilities, the government intends to establish a digital government hub within the Department for Science, Innovation, and Technology, with a focus on revolutionizing AI utilization in the public sector.

A National Data Library will be created to facilitate secure access to public data for AI development purposes.

Furthermore, a specialized AI Energy Council, led by the Science and Energy Secretaries, will collaborate with energy firms to address energy demands and challenges fueling AI advancements, aligning with the government’s ambition to become a clean energy powerhouse through technologies like small modular reactors.

Accompanying the plan are discussions on several new private sector AI investments. Companies such as Vantage Data Centres, Nscale, and Kyndryl have committed a total of £14bn towards building essential AI infrastructure in the UK, creating 13,250 jobs nationwide.

Vantage Data Centres plans to invest over £12bn in data centers across the UK, generating 11,500 jobs. Kyndryl aims to establish up to 1,000 AI-related roles in Liverpool over the next three years. Nscale, on the other hand, is investing £2.5bn in constructing the largest UK sovereign AI data center in Loughton, Essex by 2026.