The UK’s AI Action Plan: Late to the race, but ready to lead

The UK Government’s recently published AI Action Plan led by Matt Clifford, underscores the need for the UK to adopt AI on a grand scale. The Prime Minister outlined in his speech at the Queen Elizabeth Olympic Park, AI is “the defining opportunity of our generation.” With a £14B investment commitment and goals spanning computing power, data, and talent, the UK’s economic trajectory will hinge on the execution of enhancing overall productivity.

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The plan’s core is based on three pillars—computing power, data, and talent. Plans include increasing public computing capacity twenty-fold, the purchasing of a new supercomputer and the implementation of AI growth zones, to help accelerate planning for much-needed data centres. Real-world data, a must for training advanced AI models, will also take centre stage, with new initiatives set to consolidate high-value public sector datasets.

Retaining and attracting top talent—long considered an issue for the UK’s tech ecosystem, is also another critical focus. Through the expansion of university scholarships, and improving visa pathways for graduates from leading AI institutions, the government is looking to ensure it has the cream of the crop in talent.

But these plans are not without challenges. Several countries are ahead in the race, not just the United States and China, but the likes of South Korea and France as well. If the UK government is serious about addressing these gaps, it must prioritise a speedy adoption, and not fall foul to endless bureaucracy.

Can the UK become a global AI hub?

AI’s potential to transform industries is undeniable. By 2030, the global AI market is forecasted to reach over $1T, with the IMF estimating that AI adoption could boost productivity by as much as 1.5 percentage points annually. For the UK, fully realising these gains could create £47 billion in economic growth per year over the next decade.

However, the UK still faces significant structural obstacles. With just 1.7% of GDP invested in R&D compared to 3.2% in the US, and the highest business rates in Europe, the country’s ability to scale innovation in business is often hampered. The challenge stems from a persistent difficulty in translating early-stage success into globally significant enterprises.

This structural lag is further reflected in AI adoption rates—fewer than one in 20 workers currently use AI daily, demonstrating the need for greater focus on accessibility and practical integration. Professional services, long-heralded as a bastion industry for the UK, should be prioritised, a clear example of where AI can drive intelligent decision-making, rather than simply automate repetitive tasks. Success will hinge on nurturing a business environment that prioritises innovation and attracting great talent, as well as the structure and processes to scale.

Playing catch up

The UK faces an uphill battle in maintaining competitiveness. For instance, the scale of US investment in AI dwarfs the UK’s efforts. Over 2023 and 2024, gen-AI investment in the US hit nearly $48B, more than five times that of the UK, Europe and Israel combined. Meanwhile, France’s government continues to invest in its AI startups while South Korea is establishing a trillion-dollar National AI Computing Centre. While the government’s AI Action Plan is a significant step forward, it must also leverage the UK’s industrial know-how to carve out where it can lead.

By focusing on areas where the UK can outpace its competitors—from robotics to life sciences - there is an opportunity for the UK to carve out its own path instead of simply replicating the US model. One example is applying AI to manufacturing, where the UK’s legacy in industrial innovation positions it well against Silicon Valley.

Another would be focusing on our world-beating universities and the science that comes out of them. For instance, Panda Surgical, a spinout of UCL, based on the Here East campus is harnessing the power of next-generation robotics and AI to make neurosurgery safer and more effective. In addition to funding, this approach requires a strategic and long-term commitment to a vision that integrates government, industry and the UK’s world-leading academia as a cohesive effort.

What’s missing?

While the plan’s ambitions are commendable, there is scope to go even further. For example, the UK’s robotics sector warrants more thought. Steps need to be taken to increase funding for research and development in robotics and AI, tax incentives for companies investing in automation, and grants for SMEs to adopt new technologies. Establishing dedicated robotics innovation hubs alongside the proposed AI growth zones would accelerate the translation of academic breakthroughs into real-world applications- key steps required for the UK to stay ahead.

Above all else, the most critical factor is time. With the global AI landscape evolving rapidly, the risk of falling further behind is too great to ignore. The UK must prioritise delivering on Clifford’s recommendations with precision and urgency. A relentless focus on implementation—from building infrastructure to fostering talent—is the only way to bridge the gap between ambition and achievement. Matt Clifford’s permanent appointment is a positive step to ensure the momentum is kept up.

The AI Action Plan marks a shift from the UK’s previously cautious approach to a more assertive way forward. The UK has the foundation to lead in AI, but leadership requires action. If 2024 was the year of AI exploration, then 2025 must be the year of AI implementation.

Gavin Poole is CEO of Here East.

A decade of collaboration with Gavin Poole, CEO of Here East