The Labour government has introduced a comprehensive 50-point plan aimed at leveraging artificial intelligence (AI) to enhance efficiency and drive growth throughout the UK economy.
The AI Opportunities Action Plan includes innovative measures to establish designated AI Growth Zones, which streamline the process for obtaining planning permission for AI-driven initiatives.
According to the International Monetary Fund (IMF), embracing AI to its fullest potential could potentially increase productivity by up to 1.5 percentage points annually. If fully realized, these advancements could generate an estimated average of £47bn in annual benefits for the UK over the course of a decade.
The government views its AI plan as a transformative approach to improving public services and putting more money back into the pockets of citizens.
Prime Minister Keir Starmer, in announcing the AI Opportunities Action Plan, emphasized the significant impact that artificial intelligence will have on the country. He stated, “Artificial intelligence will bring about incredible changes in our nation. However, the AI industry requires a supportive government that is proactive and determined not to miss out on valuable opportunities. In a competitive global landscape, we must not remain passive. It is imperative that we act swiftly and decisively to secure our position as a global leader.”
Chancellor Rachel Reeves hailed the action plan as a reflection of the government’s modern industrial strategy in practice.
Peter Kyle, Secretary for Science, Innovation, and Technology, affirmed the government’s commitment to ensuring that the UK remains competitive in the global AI race. He stated, “Our government is resolute in its determination to prevent the UK from falling behind in the global AI race. The actions outlined in our plan are designed to ensure that the benefits of AI are accessible to all citizens across the UK. By making strategic investments today, we are paving the way for a prosperous future for all.”
The first AI Growth Zone will be established in Culham, Oxfordshire, featuring a new supercomputer that will increase public computing capacity twentyfold to support AI-related tasks. The government also announced the formation of a new team dedicated to enhancing the UK’s sovereign AI capabilities as part of a 10-year plan to develop the country’s computing and AI infrastructure.
Furthermore, plans are in place to establish a digital center within the Department for Science, Innovation, and Technology that will focus on revolutionizing the use of AI within the public sector. A National Data Library is also being created to facilitate secure access to public data for AI development purposes.
The government is set to establish a dedicated AI Energy Council chaired by the Science and Energy Secretaries, collaborating with energy companies to address the energy demands and challenges that will drive AI technology advancements. This initiative aligns with the government’s objective of becoming a clean energy superpower by leveraging technologies like small modular reactors.
Additionally, the government highlighted several new private sector AI investments, including commitments from Vantage Data Centres, Nscale, and Kyndryl to invest £14bn in the UK to build essential AI infrastructure and create 13,250 jobs nationwide.
Vantage Data Centres plans to invest over £12bn in data centers across the UK, generating over 11,500 jobs in the process. Kyndryl aims to create up to 1,000 AI-related jobs in Liverpool over the next three years, while Nscale has committed £2.5bn to building the largest UK sovereign AI data center in Loughton, Essex by 2026.
