The Labour government just rolled out a bold 50-point plan to harness artificial intelligence (AI) for boosting efficiency and growth across the UK economy.
This new AI Opportunities Action Plan kicks off the creation of “dedicated AI Growth Zones.” These zones will speed up planning permissions for AI initiatives, ensuring that projects can launch quickly. The International Monetary Fund (IMF) projects that fully embracing AI could increase productivity by 1.5 percentage points a year. Over a decade, that could translate into a staggering £47 billion average annual gain for the UK.
Prime Minister Keir Starmer emphasized the transformative nature of AI, iterating the need for a government that actively supports the industry. “This is a race,” he remarked. “We can’t afford to sit back. Our plan will make Britain a world leader in AI, driving job creation, boosting investment, and improving public services.”
Chancellor Rachel Reeves called this action plan a reflection of the government’s modern industrial strategy. Peter Kyle, the Secretary for Science, Innovation, and Technology, reinforced the commitment to ensuring that the UK won’t lag in the global AI race. He stressed that the benefits of this initiative should reach all citizens, signaling that today’s investments matter for tomorrow.
The first AI Growth Zone will launch in Culham, Oxfordshire, featuring a new supercomputer aimed at increasing public computing capacity by twentyfold. This aligns with a long-term vision for enhancing the UK’s computing capabilities. The government will also set up a digital center focused on revolutionizing public sector AI usage, alongside a National Data Library for secure public data access to fuel AI development.
A newly formed AI Energy Council will address the energy needs tied to this technology’s growth. This council, led by the Secretaries of Science and Energy, aims to support the government’s ambition of becoming a clean energy superpower, exploring innovations like small modular reactors.
On the private sector front, several companies have taken significant steps. Vantage Data Centres, Kyndryl, and Nscale together are pledging £14 billion to build essential AI infrastructure in the UK, promising to create over 13,250 jobs. Vantage plans to invest more than £12 billion in data centers, potentially generating over 11,500 jobs. Kyndryl aims to bring up to 1,000 AI-related jobs to Liverpool in just three years. Meanwhile, Nscale is investing £2.5 billion to establish the largest UK sovereign AI data center in Loughton by 2026.