Despite financial constraints limiting pre-election spending, Hunt is anticipated to unveil a five-year funding plan valued at £100 million.

The Treasury has stated that this investment will enable the Turing Institute, established in 2015 and named in honour of Alan Turing, a trailblazing computer scientist and mathematician who passed away in 1954, to achieve new breakthroughs in data science and AI. The additional funds are earmarked for research in three key areas where AI has a critical role: enhancing healthcare, environmental protection, and bolstering defence and national security. According to Treasury officials, this investment will directly benefit the public by improving healthcare services and addressing biodiversity issues.

Cybersecurity expert Oseloka Obiora, CTO, RiverSafe said: “Whilst this extra funding is very welcome, the cyber risks associated with weaponised AI require urgent attention. It’s already crystal clear that accessing and manipulating AI in the form of deepfakes and ransomware attacks is a top priority for hackers who are constantly on the lookout to steal personal data and create havoc. The government needs to work with businesses to develop a robust action plan to meet these challenges head-on, protecting companies from the tidal wave of incoming AI-enabled attacks and getting ahead of the game.”

Since becoming chancellor in October 2022, Hunt has repeatedly stated his desire to turn Britain into a science superpower and for the country to become the next Silicon Valley. He has announced plans to harness the power of Britain’s pension funds to emulate America’s success in turning inventions into commercial propositions.

Hunt believes AI offers a way of improving Britain’s poor productivity record. Recent research has suggested the adoption of generative AI could add up to $4.4tn (£3.5tn) to the global economy each year.

Sources said the chancellor wanted to use the technological revolution to unlock economic growth and enable researchers to make new discoveries in a range of areas including medicine, aerospace and climate change – and benefit every corner of the UK. Building on past projects and using the UK’s unique health data sources, Hunt thinks the new funding will allow the Turing Institute to make an important contribution to the UK’s health and wellbeing.

A Treasury source said: “With the UK home to a third of Europe’s AI companies, investing in this pivotal technology is a vital opportunity to grow the economy and deliver a brighter future for Britain.

“By backing the Turing Institute, we’re taking a further step in our plan to ensure that we are at the forefront of shaping how technology transforms our lives for the better.”