The Government has announced a major package of AI reforms and investment ahead of next week’s Budget, putting artificial intelligence at the heart of Britain’s growth strategy. The plans aim to create thousands of jobs, attract billions in private investment, and cement the UK’s position as a global AI leader.
Over £24.25 billion in private investment has been committed in the past month alone, with tech giants such as Microsoft and Vantage Data Centers partnering with government to deliver a new AI Growth Zone in South Wales. This £10 billion project will unlock at least 5,000 jobs, including in industrial heartlands like the former Ford Bridgend Engine Plant.
AI Growth Zones will transform local economies, backed by £5 million in government funding per zone to boost business adoption and upskill workers.
Key measures announced include:
- Advance Market Commitment: Up to £100 million for UK AI hardware start-ups, with government acting as a “first customer” to help scale British chipmakers.
- Sovereign AI Unit: Chaired by venture capitalist James Wise, backed by £500 million to fund high-potential AI start-ups and scale-ups.
- AI Ambassadors: Nobel laureate Simon Johnson, Monzo co-founder Tom Blomfield, and Google DeepMind VP Raia Hadsell will champion AI adoption and innovation.
- Compute Access: Up to £250 million for free compute resources for UK researchers and start-ups to train AI models and accelerate breakthroughs.
- AI for Science Strategy: Backed by £137 million, with an initial mission to speed up drug discovery and treatment development using AI.
Liz Kendall, Secretary of State for Science, Innovation and Technology, commented:
“We are ambitious for our country and believe Britain’s best days lie ahead. Today we’re announcing a package of measures that ensure we seize the opportunities to get jobs and growth in every part of the country.
“The backing by international investors today is a vote of confidence in the UK – and we’re determined to do even more to ensure we are backing British businesses, workers, and researchers to benefit from the opportunities AI brings. This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change.”
The South Wales AI Growth Zone will span the M4 corridor from Newport to Bridgend, harnessing over 1GW of power by the early 2030s. Partnerships with universities and tech firms will develop a pipeline of AI talent, ensuring long-term growth and innovation.
These initiatives form part of the UK’s Modern Industrial Strategy, designed to spread prosperity across the country and secure Britain’s role as a global hub for AI development.
Image credit: iStock
