January 14, 2025
4 mins read

PM plans to ‘unleash AI’ across UK to boost growth

Prime Minister Keir Starmer visits University College London East as part of the AI Opportunities Action Plan. (Picture: No 10 Downing Street/Flickr)

According to IMF estimates, AI can boost productivity by as much as 1.5 percentage points a year, which is estimated to be worth up to an average GBP 47 billion to the UK each year over a decade…reports London Daily Digital

Prime Minister Keir Starmer on Monday laid out his plans to unleash the potential of Artificial Intelligence (AI) with the help of billions of pounds of investment and dedicated AI Growth Zones to speed up infrastructure to make the UK a “world leader” in the sector.

Unveiling details of the government’s ‘AI Opportunities Action Plan’, Starmer said he believes AI can transform the lives of working people and has the potential to speed up planning consultations to get Britain building, help drive down admin for teachers and even help improve roads through cameras to spot potholes.

It comes as three major tech companies – Vantage Data Centres, Nscale and Kyndryl – have committed to GBP 14 billion investment to build the AI infrastructure the UK needs to harness the potential of this technology and deliver 13,250 jobs across the UK.

“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,” said Starmer.

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,” he said.

“Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services,” he added. Downing Street pointed out that AI is already being used in hospitals up and down the UK to deliver “better, faster, and smarter” care – spotting pain levels for people who can’t speak, diagnosing breast cancer quicker, and getting people discharged quicker. This is already helping deliver the government’s mission to build an NHS fit for the future, it noted.

According to IMF estimates, AI can boost productivity by as much as 1.5 percentage points a year, which is estimated to be worth up to an average GBP 47 billion to the UK each year over a decade.

 “AI is a powerful tool that will help grow our economy, make our public services more efficient and open up new opportunities to help improve living standards,” said Chancellor Rachel Reeves.

“This action plan is the government’s modern industrial strategy in action… This means better living standards in every part of the United Kingdom and working people have more money in their pocket,” she said.

According to the government, the aim is to “mainline AI into the veins of this enterprising nation”, introducing a raft of new measures learning from the US and European Union (EU) approach to deliver “dynamism, flexibility and long-term stability” for businesses.

 “This government is determined that the UK is not left behind in the global race for AI, that’s why the actions we commit to will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today,” said Peter Kyle, UK’s Science, Innovation, and Technology Secretary. “This is a plan which puts us all-in – backing the potential of AI to grow our economy, improve lives for citizens, and make us a global hub for AI investment and innovation,” added Matt Clifford, a British entrepreneur who drafted the ‘AI Opportunities Action Plan’ being followed by the government.

Among the new measures, the first of a planned set of AI Growth Zones will come up in Culham, Oxfordshire. The public compute capacity is intended to be increased twenty-fold to give the UK the processing power needed to fully embrace, with work starting on a brand-new supercomputer.

A new National Data Library to unlock the value of public data and a dedicated AI Energy Council to understand the energy demands and challenges which will fuel the development of this technology are among some of the other proposed measures in a three-pronged approach: laying the foundations of AI, boosting adoption across public and private sectors, and keeping the UK “ahead of the pack” in AI.

“Now that the government has set out its plan, it is time to act, and at pace. To drive new investment, Industry will want to see more detail on how this plan will be actioned within the next six months, particularly as we face growing competition from other countries,” said Julian David, CEO of the techUK business association championing the sector. 

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