Industry welcomes UK’s £100m investment in AI innovation and regulation

Industry figures have welcomed UK government plans to invest up to £100 million in artificial intelligence research and regulation as it looks to get to grips with the fast-moving technology.

Downing Street announced £10 million would be put aside to prepare and upskill regulators to address the risks and harness the opportunities offered by AI, with the remaining £90 million to be invested in nine sector-specific research hubs focused on areas including healthcare, chemistry, and mathematics.

The government also revealed a new partnership with the US looking at the responsible use of AI, committing an investment of £9 million through the government’s International Science Partnerships Fund. This aims to bring together researchers and innovators in the UK and the United States to focus on developing safe, responsible, and trustworthy AI.

Secretary of state for science, innovation, and technology, Michelle Donelan said: “The UK’s innovative approach to AI regulation has made us a world leader in both AI safety and AI development. I am personally driven by AI’s potential to transform our public services and the economy for the better – leading to new treatments for cruel diseases like cancer and dementia and opening the door to advanced skills and technology that will power the British economy of the future.

“AI is moving fast, but we have shown that humans can move just as fast. By taking an agile, sector-specific approach, we have begun to grip the risks immediately, which in turn is paving the way for the UK to become one of the first countries in the world to reap the benefits of AI safely.”

Regulation game

The UK has aimed to take a leading role in artificial intelligence in recent years, as the technology has captured the public’s imagination due to the growth of generative AIs such as ChatGPT. Last year, UK Prime Minister Rishi Sunak hosted the first AI Safety Summit at Bletchley Park, the home of Britain’s WW2 hackers.

The new investment was announced alongside the publication of responses to the government’s AI Regulation White Paper consultation. The consultation was launched in March 2023.

In its report, Downing Street revealed that some regulators, such as the Information Commissioner’s Office, have already taken action around AI, including updating regulations and advice for businesses.

However, as part of its pledge to bring clearer regulation to the sector, the government has challenged regulators such as Ofcom and the Competition and Markets Authority to publish their approach to managing AI by April 30. They will be forced to set out AI-related risks in their areas of regulation, outline current skillsets and expertise within their organisations to address them, and unveil how they plan to regulate AI in the coming year.

Regulation is seen as a key component to driving growth in the AI sector, with several high-profile figures including Elon Musk warning of the risks unfettered AI development could pose to jobs and safety.

Industry response

Research from Thoughtworks found that a lack of proactive regulation is shaking up consumer loyalty, with the majority (82%) of consumers favouring businesses who communicate how they are regulating Gen AI.

“Businesses need to sit up and take notice of today’s investment. Without this governmental pressure, businesses risk overlooking the importance of AI safety and in turn, jeopardising their customer base,” said Erin Nicholson, global head of data protection and privacy at Thoughtworks.

“Businesses need to understand that gaining the public’s confidence through ethical AI is not just a regulatory obligation, it is a strategic competitive advantage.

“Companies that prioritise ethical AI demonstrate a commitment to doing the right thing by their customers. By fostering transparency, ensuring fairness, and actively engaging in ethical AI practices, businesses can not only comply with potential regulations but also differentiate themselves in the market. In an era where public perception carries substantial weight, ethical AI becomes a linchpin in shaping a company’s competitive edge.”

The sector-driven approach – including the announcement of the nine innovation hubs – was described as key to boosting adoption and innovation in AI. But collaboration is also vital, explained Arun Kumar, regional director of ManageEngine.

“Ultimately, AI will benefit society, but only a close alliance between technology, government, and industry regulators will enable the safe and responsible use of AI. Today’s investment is a positive step towards building a regulatory framework for AI, facilitating a safer cyber environment for all.

“It’s clear that tethering AI will not be easy. A failure to identify and anticipate AI’s next wave of innovation, risks dangerous outcomes. We need a dual defence, with regulators and businesses joining forces to build the legislation and security practices necessary to keep pace with the level of attack. A sector-driven approach will encourage collaboration between the government bodies, industry regulators and companies, helping organisations to stay one step ahead of the threats.”

However, some in the tech sector have warned that regulation could hamper innovation, adding that the “agile” approach promised by the UK government is a positive sign.

“Until now, AI regulation has been moving too fast, and there’s already too much of it. New rules must be introduced in a way that doesn’t kill innovation. The EU, in particular, is trying to push through regulation more quickly without knowing its capabilities,” said Michal Szymczak, head of tech strategy at Zartis.

“The UK government’s intention to adopt a more agile approach to regulation that drives innovation is a positive sign. While safety considerations are fundamental, we must ensure that new laws don’t stifle innovation. Today’s response from the UK government seems to strike the right balance, addressing the need for regulatory oversight while recognising that we are still very early in adopting AI, and it has the potential to help countries, let alone businesses, grow in a way we can’t imagine. Any regulation must not curtail this.”