Minister for AI and Online Safety Kanishka Narayan attends the launch of a new government campaign. Photo: Alecsandra Dragoi/DSIT
The UK Government has announced plans to establish a new Fundamental AI Research Laboratory, backed by up to £40 million in funding, aimed at supporting ambitious scientific work that could unlock the next generation of artificial intelligence breakthroughs.
The initiative, announced by the Department for Science, Innovation and Technology (DSIT) alongside UK Research and Innovation (UKRI), will fund high risk, high reward research projects designed to address some of the most persistent challenges in Artificial Intelligence (AI) systems today – including hallucinations, limited memory and unpredictable reasoning.
Ministers say solving these technical barriers could enable AI to deliver transformative improvements across sectors such as healthcare, transport, scientific discovery and public services.
The funding will be available over six years and will be accompanied by access to the UK’s AI Research Resource computing infrastructure, providing researchers with large scale computational power worth tens of millions of pounds.
Tackling the limits of today’s AI
Artificial intelligence has rapidly moved from experimental technology to everyday use in hospitals, schools and workplaces. It is already being deployed to screen patients for cancer, optimise transport systems and accelerate scientific research.
However, experts say current systems remain constrained by fundamental weaknesses such as unreliable reasoning, hallucinations and limited memory.
The new lab will focus on rethinking how AI systems are built, rather than simply scaling up existing models with larger datasets and computing resources. Researchers will be encouraged to pursue new approaches that could make future systems more accurate, transparent and trustworthy.
If successful, these advances could support earlier medical diagnoses, more resilient infrastructure, faster scientific discovery and better digital tools for everyday use.
Government seeks bold ideas from researchers
Applications for the new research laboratory are now open, with the Government inviting AI experts across the UK to put forward ambitious proposals.
The programme will support the kind of foundational research that can take years to bear fruit but has the potential to unlock entirely new capabilities in artificial intelligence.
AI Minister Kanishka Narayan MP said the investment reflects the Government’s ambition for the UK to remain at the forefront of global AI development.
He said:
“AI is already doing things we could never have imagined just a few years ago, like helping to diagnose cancer. It can and will do even more – but if we want this technology to be a force for good, we need to make sure the next big AI breakthroughs are made in Britain.
“This is a long term investment in the brilliant minds who will keep the UK in the AI fast lane. If we are the ones breaking new ground on what AI can do, we can make sure our values are baked in from the outset. This is a critical part of our mission to make AI work for everyone.”
Expert panel to review proposals
Applications will be assessed by a peer review panel chaired by Raia Hadsell, Vice President of Research at Google DeepMind and a government AI ambassador.
Hadsell emphasised the importance of foundational research in unlocking AI’s full potential.
She said: “AI has the ability to solve humanity’s most complex problems, and fundamental research that helps this technology achieve its full potential is key. The UK has the world class talent and academic ecosystem to drive transformational research, and I am excited to see the proposals that emerge from this call.”
Part of a wider national AI strategy
The new laboratory forms an early step in delivering UKRI’s recently published AI Strategy, which aims to strengthen the UK’s research leadership in artificial intelligence.
The strategy commits £1.6 billion over the next four years to support AI research, infrastructure and skills development across mathematics, computer science and engineering.
Dr Kedar Pandya, Executive Director of the Strategy Directorate at the Engineering and Physical Sciences Research Council (EPSRC), said the investment builds on the UK’s existing strengths in foundational research.
He said: “Fundamental research enables long term breakthroughs in AI. The UK’s capability rests on exceptional talent and world leading university excellence, which underpin today’s systems and will power the next generation of technologies. By backing ambitious, ground breaking work, the new Fundamental AI Research Laboratory will unlock fresh capabilities, strengthen trust and reliability, and help the UK remain at the forefront of advancing AI for society and the economy. This investment builds on a global reputation in mathematics, computer science, and engineering, supporting bold, high reward ideas that can shape the future of AI.”
Chief Executive of the UK’s trade association for the AI economy, UKAI, Tim Flagg welcomed the announcement: “This is a welcome investment in the UK’s future capability to lead in AI. The UK consistently punches above its weight in AI research and development, thanks to our world-class universities and exceptional talent.
“The real opportunity now is to ensure those breakthroughs move from the lab into the market, connecting university research with businesses that can scale these innovations, and ensuring government plays its role by adopting and procuring AI solutions across the public sector. If we get that pipeline right, this investment in fundamental research can translate into the next generation of world-class AI companies, positioning the UK as a global innovation leader and ensuring the breakthroughs discovered here are also built, scaled and deployed here.”
AI research already delivering real world impact
UKRI backed AI research is already being deployed across critical infrastructure and healthcare.
Examples include the RADAR AI system, which detects faults on the UK railway network in real time, and the IXI Brain Atlas, a dataset helping researchers analyse brain scans across more than 40 clinical trials investigating degenerative diseases such as Alzheimer’s.
With international competition in artificial intelligence accelerating, the Government hopes the new research lab will help ensure the UK remains a leading centre for cutting edge AI development while supporting economic growth, public sector innovation and scientific discovery.