When Keir Starmer announced the UK’s AI Action Plan, the message was clear – the adoption of this technology, and the preservation of Britain’s leading role in developing it, is a top priority for his Government. What he didn’t say was that it may also be its only hope when it comes to achieving the growth and efficiency the UK economy badly needs. Artificial intelligence is no longer just a technological frontier, instead the AI sector offers a potential lifeline for economic growth and national competitiveness.
Written by widely respected entrepreneur Matt Clifford, the action plan had its genesis under Rishi Sunak and the Bletchley Park AI Safety Summit. It was no coincidence that the event was held at a place that had a crucial role in saving Western civilisation from an existential threat.
AI gone wrong, it was said at the time, could have similar or even greater impacts. Today, while safety remains key, AI is seen more as a huge opportunity for growth and a tool to be utilised. The global narrative has evolved from fear to potential, with nations racing to position themselves at the forefront of this technological watershed. The speed of that shift leaves some regretting that safety has allegedly been downgraded in pursuit of growth.
Either way, with Clifford staying on under Labour, and all 50 of his recommendations being adopted, AI has been relatively safe from political point-scoring. Any government would want to use the capabilities it offers for greater efficiency. As the new trade body for AI businesses large and small, UKAI welcomed the action plan but highlighted that it gave a very narrow definition of the AI sector and, therefore, its requirements. Greater AI literacy is essential to building public trust and developing the workforce and the customers that AI businesses across the country need.
The recent Paris Global AI Summit highlighted the emerging geopolitical dynamics of AI sector development. The sense was that Europe had some catching up to do following huge investment announcements in America.
Major data centre announcements were choreographed to ensure domestic audiences could see President Macron delivering. In the end, this was entirely eclipsed by US Vice President JD Vance declaring that “America wants to partner with all of you,” so long as countries are prepared to make changes to domestic policies previously of no relevance to broader cooperation. On the one hand, AI poses a huge opportunity for businesses and public services – large and small – but on the other, it risks being just another frontier in both a trade war and a culture war.
So, what should leaders, local and national, do about this conundrum? In many ways, as UKAI’s members assert time and again, the answers are simple to say but hard to do. As with previous industrial revolutions, they come down to preparing with training and investment, and recognising that adoption brings huge challenges and opportunities for employers and employees.
The aim of setting up a dedicated trade body for the AI sector in Britain was to bring together AI businesses from across the UK to understand what they need to grow. On behalf of its members, UKAI makes the case for the policy changes needed to see the AI sector thrive – which means investing in the skills but also in the infrastructure that is required. Moves by Labour to ease planning restrictions to get data centres built and powered are hugely welcome, but the suggestion that no new small nuclear power plants will be online before 2032 raises questions about how the UK will deliver the computing power to support the AI sector in the near future.
Likewise, the case for making government data easier to access, and for prioritising the maths and relevant other skills for AI, is an obvious and relatively easy win. However, the hardest challenge is likely to remain how best to identify, and then support, workers who are most affected by changing labour markets and to ensure that the benefits of AI reach all parts of the UK
In that sense, the main task of any organisation like UKAI is to make the case for its industry to the public and to the Government. The policies that will produce maximum benefit domestically should also be those that international investors will find compelling. As the nascent AI sector matures and develops, it should aim to be both ethical and responsible to earn public trust and drive greater adoption. Threading that needle will require both political and economic dexterity.
Indeed, addressing these challenges will require a coordinated effort from the Government, industry, and academia to foster innovation, improve infrastructure and promote sustainable development in the AI sector. UKAI brings businesses together to share best practice and amplify examples of AI businesses that are delivering results – a rising tide lifts all boats. For the UK to thrive requires this knowledge sharing, both within and across industries.
The UK Action Plan and the Paris Summit both acknowledged the scale of all these challenges; just at this moment, the AI sector is reaching a tipping point in the minds of employers and employees. Whatever the future holds, businesses and government will need to come to terms with the fact that AI is universally available and, even in highly regulated professions such as medicine and law, already being used more than most suspect. However, whilst AI tools are universally available, they are not being universally used by everyday consumers. We must address the digital divide between communities and between regions across the UK.
With all this in mind, UKAI will continue to provide feedback to the Government and policymakers on the specific and evolving needs of the industry, while also bringing together the industry to support and deliver the Prime Minister’s ambitions. AI innovation spans industries, from small enterprises to non-tech sectors, all driving the new industrial revolution right across the UK.
The AI sector is at the coalface of the new industrial revolution; no one knows these issues better or is more driven to solve them. From education to investment and from energy to skills, that means offering constructive criticism on behalf of members to champion the needs of the AI sector. UKAI calls on the Government to recognise that the AI sector is broader than just tech-based companies and, as a result, requires policies that drive public trust and adoption.
The UK’s AI potential can only be unlocked through true partnership between government and industry. By working together, we can drive innovation, fuel economic growth and secure global leadership. Now is the time to collaborate and shape the future.
Tim Flagg
DesignationUKAI CEO
Matt Warman
DesignationUKAI Advisor and former AI Minister
