Britain must move decisively to secure its place in the new technological era, Technology Secretary Liz Kendall said today, warning that countries which fail to master artificial intelligence risk losing control over their economic and security futures.
Speaking at the Royal United Services Institute (RUSI), the Technology Secretary argued that AI, computing power and advanced chips are now the defining “currency” of global power, shaping economic strength, national security and defence capability.
Drawing on historical comparisons, Liz Kendall said nations that pull ahead are those that master the technologies of their age, from naval power and railways to electricity grids.
Today, she said, that role is played by artificial intelligence, semiconductors and compute, which increasingly underpin both economic competitiveness and “hard power”.
She warned that the concentration of power in the global AI market poses a strategic risk, noting that around 70% of global AI compute is controlled by just five companies.
Control over where AI systems are built, how they operate and who ultimately governs them, she said, is now fundamental to economic security, energy security and defence security.
The Technology Secretary said Britain must take a more assertive approach to backing its own strengths, warning that failing to act would amount to surrendering influence over the technologies that will define the future.
As part of this shift, the government will focus on building British leverage in areas of the AI “stack” where the UK can be indispensable – from frontier research and high‑growth companies to skills, compute and digital infrastructure.
Rather than trying to do everything alone, she said the goal is to ensure Britain is a keystone in the global AI architecture, working closely with international allies while securing capabilities that cannot be easily bypassed.
To strengthen Britain’s position, Liz Kendall announced the development of a UK AI hardware plan, aimed at securing sovereign capability in chips and semiconductor technologies that underpin the full AI ecosystem.
She stressed that the plan is not about technological isolation, but about making sure the UK remains essential to the global AI supply chain, able to influence standards, security and innovation rather than being dependent on decisions taken elsewhere.
The Technology Secretary said the UK is uniquely well placed to succeed if it acts with confidence.
She highlighted the strength of the UK’s $1 trillion technology sector, world‑leading universities and research institutions, and internationally influential bodies such as the AI Security Institute, which is shaping global approaches to AI safety and governance.
She also pointed to Britain’s deep international alliances as a critical asset in shaping a shared global AI ecosystem whilst rejecting calls to halt or pause AI development, describing such a move as a “double betrayal” of British talent and national interest.
She warned that retreating from technological progress would mean retreating from the world, arguing that the real choice facing the UK is not between a world with AI and a world without it, but between:
- A Britain that actively shapes its AI future, or
- One that is left at the mercy of decisions made by others
As part of her speech, the Technology Secretary said:
“This government believes AI Sovereignty is not about isolationism or attempting to pull up the drawbridge and go it alone.
“We will continue to use the best technology and welcome inward investment because that’s what our public services and economy demand.
“For Britain, AI sovereignty is about reducing over dependencies and increasing resilience in key national strategic priorities, as the Prime Minister has rightly argued.
“So we secure greater control and greater leverage over the issues that matter most.
“And if you want leverage for your country, you need to be a keystone in the global tech architecture – an indispensable partner. This requires 2 key shifts in our approach.
“First, a decisive move towards backing more British AI companies, especially in areas where we have real strengths.
“And second, by working more closely with our international partners, particularly other so-called middle power nations, including on setting the standards for how AI is deployed.”
She cited initiatives such as the AI Security Institute and Sovereign AI as examples of this new approach in action.
Image credit: iStock
