In a step following the previous government’s approach, UK Prime Minister Kier Starmer is putting further trust in AI as a productivity tool, by greenlighting all 50 recommendations set out by entrepreneur and founder Matt Clifford in his AI Opportunities Action Plan.
Confirming details of the government’s AI Action Plan today, the Prime Minister voiced his belief that AI can transform the lives of working people – from the potential to speed up planning consultations to get Britain building to helping drive down admin for teachers so they can focus on teaching and feeding AI through cameras to spot potholes.
UK Prime Minister, Keir Starmer, expressed hopes that AI can drive significant change in the country: “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.
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“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.”
Darren Hardman, CEO of Microsoft UK, praised the scale of this government’s ambition for AI development and adoption saying it is “exactly what’s needed to drive economic growth, transform public services and create new opportunities for all.”
“Maintaining the UK’s position as a global leader in AI demands innovation and investment across the public and private sectors and Microsoft is fully committed to helping make this vision a reality.”
Siobhan Wilson, SVP and UK country leader of Oracle, also said that “AI is helping revolutionize the way businesses and the public sector operate” while “it enables new ways of working that can help drive innovation and success.”
The UK’s £14bn AI Investment Plan to create jobs and boost tech
The government has unveiled a significant boost to its AI sector, with three leading tech companies – Vantage Data Centres, Nscale and Kyndryl – committing a combined £14bn to enhance the nation’s AI infrastructure and create 13,250 jobs. This follows the £25bn in AI investment announced at the International Investment Summit.
Major Commitments:
- Vantage Data Centres: Plans to invest over £12bn in data centers across the UK, including developing one of Europe’s largest data campuses in Wales. This initiative is set to generate over 11,500 jobs.
- Kyndryl: The world’s largest IT infrastructure services provider will establish a tech hub in Liverpool, aiming to create up to 1,000 AI-related jobs over three years, supporting the government’s vision to integrate AI into the economy.
- Nscale: A leading UK AI firm has announced a $2.5bn investment to bolster the country’s data centre infrastructure. By 2026, they plan to build the largest UK sovereign AI data centre in Essex.
Shaheen Sayed, head of Accenture UKI and Africa, said: “The Government’s AI Action Plan rightly focuses on investing in AI foundations and pushing hard on AI adoption across the economy. In our work, we see a formula for success in scaling AI.
“As the plan recognizes, this formula is about more than the technology. To deliver growth, we need to reimagine work and workforces on the front line and start reskilling the 20 million people who will be affected by AI in their roles over the coming years.”
With the UK priding itself as being at the forefront of technological revolutions, Sayed added that “the decisions and investments we make at this crossroads will determine the UK’s growth over the next decade. The AI Action Plan lays out a pathway for how the UK captures the extraordinary opportunity ahead and we fully support it.”
The government’s ambitious plan aims to position the UK as a global leader in AI by introducing:
- AI Growth Zones: Streamlined planning processes to accelerate AI infrastructure development, starting in Culham, Oxfordshire.
- Increased Computing Power: A twentyfold increase in public computing capacity, with immediate work on a new supercomputer.
- National Data Library: A secure platform to unlock public data’s value for AI innovation.
- AI Energy Council: Chaired by Science and Energy Secretaries, this body will address the energy needs of AI technologies, supporting the UK’s clean energy goals.
- Sovereign Capabilities Team: A dedicated team to harness AI’s opportunities and strengthen the UK’s independent technological capabilities.
Long-Term Vision
The 50 measures outlined in the Action Plan aim to make the UK the premier destination for AI businesses to launch, grow, and innovate. As part of the government’s Industrial Strategy, this initiative underscores a commitment to digital transformation, with further details to be revealed in the upcoming Digital and Technology Sector Plan.
This comprehensive strategy underscores the UK’s ambition to lead AI innovation globally, fostering economic growth and securing its place as a change-maker in the industry.
Leanne Allen, head of AI at KPMG in the UK, commented: “These steps signal a strong commitment by the government to not just support but actively enhance the AI ecosystem. Enabling the expansion of data centre capabilities represents a unique opportunity for the UK to differentiate itself and drive growth, positioning us as a hub for AI development and application.
At the same time, Allen warned that while it is important the UK retains its global leadership role in AI, “the government will need to balance the expansion of these capabilities with their net-zero commitments.”
Alison Kay, VP UKI at Amazon Web Services (AWS), also acknowledged the UK Government’s AI Opportunities Action Plan will play an important role in helping the UK to unlock the full potential of AI.
“At AWS, we’ve seen first-hand the benefits that digital technologies like AI can bring and that’s why we’ve announced plans to invest £8bn over the next five years building, operating and maintaining data centers in the UK.
“By putting close industry collaboration and public-private partnership at the heart of the Government’s agenda, every citizen, community and business in every region of the UK will have the opportunity to realize the benefits of AI, and thrive and grow.”
Zahra Bahrololoumi, CEO of Salesforce UKI, said: “In the coming year we will see more and more businesses embrace innovative solutions such as agentic AI to tackle everyday tasks, but they need investment and expert guidance to unleash long-term value and productivity gains.
“Businesses in the UK are in a prime position to fully unlock the opportunities of AI, thanks to a strong innovation culture and risk-based laws. That is why Salesforce chose the UK as the location of its first-ever AI Centre, building on our commitment to invest $4bn in our UK operations to harness the transformational power of AI.”
What it means for ERP insiders?
The UK government has launched a bold initiative to position the nation as a global leader in AI. Prime Minister Keir Starmer’s endorsement of all 50 recommendations in the AI Opportunities Action Plan reflects a commitment to harnessing AI for productivity, economic growth and public service transformation.
Key AI Development Pillars:
- AI Growth Zones: Streamlined planning for AI infrastructure, beginning in Culham, Oxfordshire.
- National Data Library: A secure platform to leverage public data for innovation.
- AI Energy Council: Addressing the energy needs of AI technologies while supporting clean energy goals.
- Increased Public Computing Capacity: Plans to expand computing power twentyfold, with immediate work on a new supercomputer.
- Sovereign Capabilities Team: A dedicated group to strengthen the UK’s independent AI capabilities.
- Economic and Societal Benefits:
- The plan emphasizes job creation, reduced administrative burdens for public servants, and better public services.
- The reskilling of 20 million workers to adapt to AI-driven roles underscores a forward-looking approach to workforce transformation.
- Industry Collaboration:
- Significant private-sector partnerships, such as AWS’s £8 billion investment over five years, signal the critical role of public-private cooperation in achieving AI leadership.
The UK’s strategy aims to combine robust AI infrastructure development, workforce upskilling and sustainable innovation to drive a decade of national renewal. While challenges, such as balancing AI advancements with net-zero commitments, remain, the government’s proactive approach has set the stage for transformative growth.
