Responding to the newly announced £14 billion investment, Patrick Sullivan, Chairman of the Parliament Street think tank said: “It’s encouraging to see the government put AI at the heart of its growth agenda, but with businesses grappling with stubborn inflation, high interest rates incoming NI rises, much more needs to be done to support adoption, particularly for smaller firms.”

“Against this backdrop, £14 billion is a drop in the ocean, and should serve as an initial foundation marker that is increased when the public finances allow it,” added Sullivan. 

The Prime Minister’s AI Opportunities Action Plan has committed £14 billion in investment into ‘game-changing’ artificial intelligence and creating 13,250 jobs.

The IMF estimates that AI could increase productivity across the UK by as much as 1.5 percentage points each year, if the technology is fully embraced. These gains may be worth an average of £47 billion to the UK economy every year for over a decade.

As part of the action plan, the government is creating new AI Growth Zones to fast-track the building of AI infrastructure, starting in Culham and Oxfordshire. These zones will speed up planning permission and generate energy connections needed to power AI.

Prime Minister Keir Starmer said: “Artificial Intelligence will drive incredible change in our country. 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.

“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.”

The AI Opportunities Action Plan takes forward the 50 recommendations set out by AI expert Matt Clifford, providing the full support of the government.

The plan re-enforces the UK commitment to become a global leader in artificial intelligence, learning from the US and EU’s approach to lead innovation and deliver long-term stability for businesses.

Stuart Harvey, CEO of Datactics, commented: “Putting AI front and centre of the digital agenda is a key step forward for driving economic growth. However, those embracing AI will also find themselves facing much greater responsibilities, particularly around ethical usage as well as ensuring high standards of data quality and accuracy at all times.

“It's important to remember that AI is only as good as the data it relies upon, and with thousands of organisations suffering from information overload, including duplication and outdated, erroneous files, high levels of risk could be incurred.

“Organisations seeking to invest in and reap the benefits of AI need to think carefully about their long-term data strategy, so they can maximise opportunity and avoid the pitfalls which could arise from poorly managed data sets.”

As UK General Manager at AND Digital, Will Sargeant, states: “The government’s commitment to AI investment and skills development is hugely important for the UK’s digital future across both the private and public sectors. By recognising the importance of upskilling at every level, from lifelong learning to apprenticeships, this plan lays the groundwork for a more innovative and inclusive economy. At AND Digital, we’re excited to see these steps forward and to support organisations in harnessing AI’s potential through empowered, skilled teams.”

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