13 Jan 2025

The UK's AI moment: An ambitious new plan for innovation and growth

The UK Government has today unveiled an ambitious new approach to artificial intelligence that aims to strengthen the UK's global competitiveness in AI development and adoption. Further details on funding and implementation will be set out through a number of upcoming announcements, including the Spending Review.

Matt Clifford's AI Opportunities Action Plan makes 50 recommendations across key areas: improving data capabilities and access, developing AI talent, reforming regulation, and driving adoption across both public and private sectors. The Plan includes significant commitments like a 20-fold increase in public compute capacity by 2030, new AI Growth Zones, and a dedicated function to support sovereign AI capabilities.

The Government's response broadly accepts these recommendations, acting as a clear statement of intent to put AI at the heart of the UK's vision for public service reform and future economic growth. The Prime Minister emphasised this commitment, noting that not taking action would reduce the UK to a mere, "technology taker."

Expected impacts

The announcement is comprehensive in scope and, if executed effectively, could spark a 'quiet AI revolution' in how government and businesses operate. techUK strongly welcomes the announcement and the government's acceptance of Matt Clifford's recommendations, many of which reflect priorities we have long championed in our engagement with industry, policymakers, and regulators.

However, while the Government's ambitions are clear, the details are mixed – particularly around compute timelines and visa reforms. Notable gaps include semiconductor supply planning, which remains critical for large-scale AI, and no commitment to an exascale computer. Broader challenges, such as hesitancy in AI adoption and the need for dedicated programmes and resources, also persist.

Given the rapid pace of technological change, the success of this Plan depends on swift and coordinated action. Without this, the UK risks missing this crucial opportunity to lead in AI innovation. With implementation steps planned between Spring 2025 and 2027, the upcoming Spending Review will be a crucial milestone. It must provide further detail on funding and actionable next steps, alongside further information through initiatives like the Cross-Government Review of Technology Adoption and the SME Digital Adoption Taskforce, where techUK is actively involved as a member.

Key initiatives

Below, we outline key announcements:

Compute

The Plan commits to expand the UK's public compute capacity 20-fold by 2030, underpinned by a 10-year funding commitment. While plans include the expansion of the existing Archer 2 system, no commitment has been made to invest in exascale compute. techUK has previously called for UK Government to invest in an exascale machine. To ensure strategic use of these expanded resources, mission-focused program directors will oversee how it is used. The investment is expected to significantly increase availability for researchers and SMEs, providing critical boost to innovation.

This announcement comes after nearly a year of uncertainty regarding compute funding in the UK, which has been challenging for the industry. As such, it is a welcome step toward providing much-needed clarity and rebuilding confidence. However, given the past uncertainty, it is vital that the government delivers clear, actionable plans without further delays.

Furthermore, while the Plan’s focus is on AI compute, it is important to recognise that high-performance compute offers significant benefits for scientific research and innovation beyond AI. To ensure the UK remains competitive in this critical area, a comprehensive compute roadmap is essential. This should include a strategy for achieving exascale capabilities, an underpinned by investments into improving skills and access to publicly owned compute.

AI Growth Zones

The Plan outlines the establishment of AI Growth Zones (AIGZs) to support AI development. These zones aim to combine local rejuvenation with leveraging existing UK sites to create hubs for innovation that deliver both regional and national benefits. Further details are expected in Spring 2025.

techUK welcomes this initiative, noting that its success will heavily depend on the clarity and execution of the Government’s plans.

Data infrastructure

The Plan introduces a more strategic approach to data, aiming to improve data quality and accessibility – key drivers for AI development. A National Data Library will be established, featuring five high-impact datasets, guidelines for AI training, and incentives for collecting clean, well-structured data. Other initiatives include identifying high-value datasets and aligning public data collection with strategic goals to drive innovation.

Additionally, the government plans to couple compute access with proprietary data to attract researchers and will explore the feasibility of establishing a copyright-cleared British media asset training set using resources like the BBC and National Archives.

AI talent

The Plan seeks to address the AI skills gap through several key actions. For example, a skills assessment on workforce needs will be carried out. The government also plans to increase the number of AI graduates and create new pathways into AI beyond universities. To strengthen the talent pipeline, a flagship scholarship program and a head-hunting initiative will be launched and a review of gaps in the visa system is planned.

While these are welcome steps, specific funding details remain unconfirmed. Robust investment and action on visa reforms will be essential to achieving these ambitions.

Public sector adoption

The announcement aims to accelerate AI-powered public services through reformed procurement and delivery processes. A new "scan, pilot, scale" approach will be used for identifying, testing, and deploying AI solutions. The Government identified initial projects include: scaling and open sourcing public sector AI pilots; scaling public-facing tools, such as the GOV.UK chatbot; organising hackathons aligned with government missions; and piloting an AI knowledge hub. Other measures include appointing departmental AI leads and introducing mission-specific tenders to drive innovation and improve public service delivery.

Regulatory focus

The Plan outlines a number of measures to enhance regulatory landscape for AI, including increased funding for regulators' to strengthen AI capabilities; mandated annual reporting from regulators on AI innovation; and work with regulators to drive AI adoption in high-potential sectors. Departments will guide regulators to prioritise responsible AI adoption.

Matt Clifford’s report recommends introducing a new central body with statutory powers and higher risk tolerance to drive innovation if existing regulators fail to meet expectations. The Government agrees in principle but has not committed to this, with further details expected between spring and autumn 2025. The Plan also commits to enhancing AI assurance capabilities.

Additionally, the Government will also set out its approach to AI regulation, and seek to develop a copyright regime that supports both AI and creative sectors.

techUK strongly welcomes these measures, which align with our previous calls for greater regulatory resourcing, accountability, and direction.

Sovereign AI function

The Government will launch a new sovereign AI function to strengthen the UK's position in frontier AI development. The unit will have the power to partner with national AI companies to to offer strategic support through access to AI Growth Zones and compute, provide high-potential datasets via the National Data Library, assist with talent relocation, and facilitate relationships between partnered companies and the UK's national security community. Further details are expected by Spring 2025.

Private sector adoption

The Plan outlines measures to boost private sector AI adoption across the economy. The Industrial Strategy will identify sector-specific AI opportunities through a cross-government digital technology review. The Government will appoint AI champions in key sectors like life sciences and financial services, while a targeted SME program will leverage trade bodies, delivery partners, and local business support networks to drive adoption. This work will be integrated with local growth plans. Further details on these initiatives are expected between Spring and Summer 2025.

Other recommendations of note

Leadership appointments: The government has appointed Matt Clifford CBE as the Prime Minister's AI opportunities advisor, leading work across No10 and DSIT, and Sir Demis Hassabis as an expert advisor to government on AI.

Mitigate sustainability and security concerns in AI compute: The Plan emphasises improving energy efficiency and secure infrastructure for sensitive programs through an AI Energy Council and partnerships with national security agencies. Further updates are expected in Spring 2025.

International compute partnerships with like-minded countries: The Government has committed to building partnerships with like-minded countries, with further details expected in Spring 2025.

Next steps

With recommendations scheduled between Spring 2025 and 2027, swift action will be crucial - the next couple of years will determine whether the UK can fully seize the opportunities presented by AI.

We look forward to seeing concrete action to advance the ambitions of the AI Opportunities Plan, and to support the government in this.

techUK’s take on the announcement

Julian David OBE, CEO of techUK, said:

“Through this announcement the Prime Minister has set out how the Government sees AI as central to their plan for change.

“These are well thought out initiatives to boost the UK’s AI capabilities that will have positive effects across our society and economy. For example, by increasing the UK’s AI compute capacity, establishing AI Growth Zones in areas that need rejuvenation, improving our public services, and better resourcing our regulatory system to enable AI innovation.

“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.

“techUK and our members stand ready to work with the Government to deliver this plan and ensure the UK seizes the opportunities presented by AI technology.”