The UK Government shifts AI strategy to focus on public sector efficiency amid industry concerns.
The UK government, led by Prime Minister Keir Starmer, is developing a new artificial intelligence (AI) strategy aimed at cutting costs ahead of the upcoming autumn budget. The strategy shifts focus from direct investment in AI technology towards prioritising public sector adoption, aiming to use AI to improve efficiency and reduce costs within government services. As the UK government shifts AI strategy, cutting costs and changing its focus, it has come under pressure from critics who compare its approach to that of other governments.
The UK government cancelled a £1.3 billion AI investment, sparking criticism and comparisons to France which boosted its AI funding to €2.5 billion.
Since taking office in July 2023, Starmer’s government has been reassessing the financial commitment to AI development. One of its first actions was to cancel a planned £1.3 billion investment in AI-related technologies, which was initiated by the previous government. This included an £800 million investment in building a supercomputer at the University of Edinburgh. Though £1.3 billion is a relatively modest sum in the global AI sector, the decision has triggered criticism from industry leaders who view it as a sign that the UK is stepping back from supporting innovation. In contrast, France has recently committed €2.5 billion towards developing its AI capabilities, positioning itself as a European hub for generative AI.
The UK government may scrap plans for a San Francisco AI Safety Institute office as part of cost-cutting and policy shifts.
In another move that signals a shift in AI policy, the UK government is considering scrapping plans for a San Francisco office for the UK’s AI Safety Institute. This office would have hired staff at competitive market rates, but may now be cut as part of broader cost-saving efforts. Some government insiders see this decision as a way for the new UK administration to differentiate itself from the previous government, particularly in terms of the approach to AI safety and existential risks posed by advanced technologies.
The UK’s tech minister appointed tech entrepreneur Matt Clifford to lead the development of a new AI strategy.
In July, Peter Kyle, the UK’s tech minister, dismissed Nitarshan Rajkumar, a co-founder of the AI Safety Institute, from his role as a senior policy adviser. While it is not uncommon for a new administration to appoint its own advisers, some in the industry saw this dismissal as a misstep, expressing concern about the loss of expertise. At the same time, the government has recruited Matt Clifford, a tech entrepreneur who played a key role in organising last year’s AI Safety Summit, to craft a new AI strategy. Clifford is expected to present the plan in September, ahead of the government’s Autumn Statement in October.
The UK’s AI strategy prioritises public sector integration to boost efficiency while cutting direct investment to tackle financial challenges.
The UK’s revised strategy will emphasise integrating AI into public services to drive efficiency and lower costs. Although this approach offers new opportunities for businesses providing AI solutions to the public sector, it seems like a significant reduction in government support for direct investment in AI development. The government’s AI strategy also aims to address the country’s broader financial challenges, including a £22 billion hole in public finances. As part of its broader approach, the Department for Science, Innovation, and Technology (DSIT) is fielding applications to model how widespread AI adoption will impact the UK economy. As government officials work on the new AI strategy, businesses in the UK are closely monitoring developments, balancing the potential benefits of public sector adoption with concerns that the UK is scaling back its aspirations in AI innovation.
