The UK government has announced a plan that aims to harness artificial intelligence (AI) as a driver of economic growth and innovation.
The ‘AI Opportunities Action Plan’, revealed on 13 January 2025 by prime minister Keir Starmer, sets out 50 measures to position the UK as a global leader in AI development and adoption.
These include creating dedicated ‘AI Growth Zones’, increasing computational capacity and establishing a National Data Library.
The prime minister stated that AI has the potential to transform public services and boost living standards.
“Artificial intelligence will drive incredible change in our country,” Starmer said. “Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change.”
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Key elements of the plan include the establishment of AI Growth Zones to expedite planning permissions for data centres and infrastructure. The first zone will be located in Culham, Oxfordshire.
Additionally, the government pledged to expand public compute capacity twentyfold by 2030, starting with the construction of a new supercomputer.
Significant private sector commitments accompanied the announcement. Vantage Data Centres, Nscale and Kyndryl pledged a combined investment of £14bn, with plans to create 13,250 jobs.
Vantage Data Centres alone intends to invest £12bn in data centre projects, including a major campus in Wales. Kyndryl will establish a tech hub in Liverpool, creating up to 1,000 AI-related jobs.
According to the International Monetary Fund, embracing AI fully could increase UK productivity by 1.5% annually, potentially adding £47bn to the economy each year over a decade.
UK science, innovation and technology secretary Peter Kyle highlighted the UK’s potential. “We already have remarkable strengths we can tap into when it comes to AI,” he said.
“This plan ensures that the benefits are spread throughout the UK, so all citizens reap the rewards of the bet we make today.”
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The government also announced the formation of an AI Energy Council to address energy demands and support sustainable AI development.
Matt Clifford, appointed as the prime minister’s advisor on AI, called the plan “all-in”, adding, “AI offers opportunities we can’t let slip through our fingers.”
Industry leaders welcomed the plan. Darren Hardman, CEO of Microsoft UK, described it as “exactly what’s needed to drive economic growth, transform public services, and create new opportunities.”
Mike Beck, global chief information security officer at Darktrace, noted the recommendations could turn AI into “an engine for the UK economy.”
The government’s plan also includes a commitment to ensure AI adoption in the public sector. Departments have been tasked with integrating AI to improve efficiency and outcomes.
The plan forms part of the government’s broader Industrial Strategy and lays the foundation for an upcoming Digital and Technology Sector Plan.
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