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UK Unveils £14 Billion AI Strategy to Boost Economy and Jobs

The UK government has launched a bold initiative, the AI Opportunities Action Plan, to integrate artificial intelligence across public and private sectors.

Prime Minister Keir Starmer announced the strategy on January 13, emphasising its potential to drive economic growth, create jobs, and position the UK as a global AI leader.

Backed by £14 billion in commitments from companies like Vantage Data Centres, Nscale, and Kyndryl, the plan is expected to generate 13,250 jobs and significantly enhance AI infrastructure nationwide. The investment builds on the government’s £25 billion pledge announced at last year’s International Investment Summit.

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  1. AI Growth Zones: The plan includes 50 recommendations to foster AI-driven development, starting with a growth zone in Culham, Oxfordshire, and others to follow. These zones will fast-track investment and infrastructure development.
  2. AI in Public Services: AI technologies will be integrated into sectors like education, healthcare, and public administration to improve efficiency and reduce administrative burdens.
  3. Supercomputer and Data Management: The government plans to boost compute capacity twentyfold by 2030 with a new supercomputer. A national data library will also be established to manage public data securely and lay the groundwork for sovereign AI.

Adopting AI under the plan could increase UK productivity by up to 1.5 percentage points annually, generating an estimated £47 billion annually over the next decade.

Prime Minister Starmer highlighted the transformative potential of the strategy, stating it would bring more jobs, investment, and improved public services to the UK. “This plan will transform the lives of working people and make Britain the world leader in AI,” he said.

The initiative, led by government AI advisor and venture capitalist Matt Clifford, underscores the UK’s commitment to becoming a hub for AI innovation while driving economic growth and global competitiveness.

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