The UK Government has announced a bold plan to integrate artificial intelligence (AI) across the public sector, aiming to boost economic growth, create jobs, and enhance living standards.
Prime Minister Keir Starmer unveiled the AI Opportunities Action Plan, committing to all 50 recommendations proposed, signalling a decisive shift from previous policies.
Starmer emphasised AI’s transformative potential: “Artificial Intelligence will drive incredible change in our country. From personalising education to streamlining planning applications, AI can revolutionise the lives of working people. But we need a government that moves fast and wins the global race for AI.”
Key measures include the creation of AI Growth Zones, a twentyfold increase in public compute capacity, and a National Data Library to support AI development.
A new AI Energy Council will also address the technology’s energy demands, aligning with the government’s clean energy goals. The government estimates that fully embracing AI could add £47 billion annually to the UK economy over the next decade.
Private firms have responded with significant investment, pledging £14 billion and creating over 13,000 jobs. Nscale plans to invest £2 billion in the UK data centre industry, including a sovereign AI data centre in Essex by 2026. Vantage Data Centres will contribute £12 billion to infrastructure projects, while Kyndryl is launching a tech hub in Liverpool, creating 1,000 jobs.
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Matt Clifford, who spearheaded the recommendations, hailed the plan as transformative. “This is a plan that puts us all-in on AI’s potential—to grow our economy, improve citizens’ lives, and establish the UK as a global hub for AI innovation.”
Industry leaders welcomed the plan’s vision. Nvidia’s David Hogan called it “a clear-sighted and ambitious policy initiative,” while Salesforce UK CEO Zahra Bahrololoumi praised its emphasis on transparency, safety, and collaboration.
Data sovereignty has emerged as a key theme among providers, ensuring data is stored and processed within UK borders under domestic laws. Mark Boost, CEO of Civo, called it “the most critical step to enabling secure AI innovation.”
He explained: “Data sovereignty guarantees that public and private sector organisations can deploy AI without fear of breaching data protection controls. This commitment positions the UK to leapfrog international competition and become a home for innovators.”
Nscale CCO Karl Havard reinforced this focus: “Our investment will create a secure, GenAI cloud for the UK—ensuring sensitive data stays within the country’s borders while enabling businesses to access cutting-edge AI capabilities.”
