Investors and regulators are being urged to go further and faster to deliver new growth for the UK’s AI sector as part of the Government’s modern industrial strategy, as new figures show backing for British AI firms hit record levels last year.
A total of £2.9 billion in private support and average deals worth £5.9 million have set the stage for further investment and new opportunities for both AI companies and financial backers alike.
It means British AI companies alone now contribute £11.8 billion to the UK economy – double the amount in 2023 – while AI employment tops 86,000 across the country. This record investment, the Government says, is unlocking new growth which will benefit communities, helping fuel further development and putting more money in people’s pockets through AI.
The figures also show at least double the number of AI companies are now based in the Midlands, Yorkshire, Wales and North West compared to just three years ago.
In a speech to city bosses and tech firms at Mansion House on 3 September, the
Technology Secretary called on industry to step up and match the UK government’s ambition when it comes to AI – in a bid to drum up further investment and see more AI companies call Britain home.
He pointed to the Government’s efforts to slash red tape, build infrastructure such as data centres, and attract top talent – with a fresh push to work in partnership with industry to maintain the UK’s position as a world leader.
Addressing the room, the Technology Secretary said: “We have learned the lesson of history: countries can only prosper if they get the big calls right, if they decide to go beyond the expected and embrace the future, to innovate not imitate – refusing to be constrained by the problems of today by taking up the challenges of tomorrow.
“In these uncertain times, I am certain that’s what it takes to get a global competitive edge.
“We want you to keep investing here, keep building here – list here, scale here. If you invest in Britain, you’ll share in that competitive
edge.”
To capitalise on this momentum, the Technology Secretary has set out new plans to expand the UK’s AI offering, bolstering its sovereign AI capabilities by delivering new opportunities for the sector.
Public trust in the technology is key to its uptake, with more sectors of the economy primed to tap into the potential of AI.
It is a vital part of driving both workforce and investor confidence to spark the new jobs and economic growth, which the Government claims are already transforming communities.
A new AI assurance roadmap will look to add billions of pounds to the economy and create scores of new jobs by unlocking the growth of a key industry for the UK’s AI sector.
At its heart, AI assurance centres on ensuring independent experts can run the rule over AI systems – making sure they are trustworthy without leaving developers to “mark their own homework”.
Chancellor of the Exchequer Rachel Reeves said: “This Government is slashing burdensome red tape and making the conditions for record investment in AI, so that once
again the UK can lead the way.
“This country has huge potential, but our economy has been stuck on pause for too long. By giving companies the right environment to innovate, grow and create jobs we are changing that, delivering economic growth to put more money in working people’s pockets.”
The Government will now press ahead with plans to establish a dedicated AI assurance profession, bringing together key stakeholders from across the tech sector who will help strengthen the quality of this new standalone industry.
This will support developers to navigate and understand the regulatory landscape, saving time while also fostering public confidence and trust in the technology for users as its adoption is ramped up across the economy.
Its work will include the development of a professional code of ethics and detail the kind of access to models and systems that AI assurance professionals will need to carry out their work.
This will also give rise to a tailored skills and competencies framework that covers a range of areas from professional training and education to
the establishment of a fully-fledged professional certification scheme.
Kicking off this work, a new AI Assurance Innovation Fund worth £11 million will be launched – with applications due to open in the Spring. This will support the development of new and innovative AI assurance tools to future-proof the market and ensure the UK is ready to respond to rapid developments in AI capabilities.
The announcements made on 3 September also included a new push from the Technology Secretary to slash regulatory burdens and get “game-changing innovations” for key sectors of the economy to market faster than ever before.
A £2.7 million boost will develop regulator capability in AI so that they are better able to streamline the regulatory environment and speed up the commercialisation of transformative technologies that will boost economic growth and improve the lives of the public.
Areas set to benefit from these plans include Ofgem being supported to develop an innovative AI tool to accelerate approvals for clean energy infrastructure, the Civil Aviation Authority using AI to analyse air accident reports and accelerate drone adoption, and the Office for Nuclear Regulation enabling the nuclear industry to use AI to safely and efficiently manage high-risk nuclear waste.