UK revises AI strategy to accommodate budgetary constraints

The UK government is developing an AI strategy prioritizing public sector adoption. The new approach includes scrapping £1.3 billion worth of AI investments, including a supercomputer project.
September 5, 2024

The new UK Government is developing an AI strategy that will prioritize public sector adoption over direct industry investment, the latest in a series of cost-cutting measures ahead of the autumn budget.

Since coming into power, the government has been reviewing spending related to AI and cancelled £1.3 billion worth of investments in related technologies proposed by the previous administration, including an £800million investment for a supercomputer at the University of Edinburgh.

Though £1.3 billion is a modest sum considering the grand landscape of AI, some industry leaders have still criticized that decision as sending a message that the country is less interested in supporting innovation. The French government has just committed €2.5 billion (£2.1 billion) to the development of AI technology domestically.

There are also unconfirmed reports that the French government scrapped plans for its AI Safety Institute in its San Francisco office, which would have opened this summer offering staff salaries of more than $100,000 (£76,245).

A source close to the Department for Science, Innovation, and Technology says that this name change might be an attempt to distance this new government's policy from that of the previous government.

Tech minister Peter Kyle has also removed one of the co-founders of AI Safety Institute, Nitarshan Rajkumar, from his post as a senior policy adviser. That's not especially uncommon when new governments arrive, but some in the industry have certainly raised their eyebrows at it happening this time out.

To write a new strategy, the government has enlisted the help of Matt Clifford, a tech entrepreneur who organized last year's AI Safety Summit. The plan is due to be presented in September, ahead of the government's autumn budget.

A government spokesperson insisted that it continues to seethe transformative potential of AI, while remaining committed to finding ways to ensure that the technology can be harnessed to boost growth and create opportunities across the UK.

According to Tech Minister Kyle, the government will be focusing on promoting the increased adoption of the processing method in the public sector in order to cut costs. This is apparently coming at the expense of scaling back its direct investments in industry.

Last November, Britain hosted the world's first AI Safety Summit, attended by global leaders and figures from the tech industry. The event served as a wake-up call to re balance the approach to both the risks and benefits of AI. DSIT has started recruiting economists to model the impact of AI applications throughout the UK.

The meeting at Number 10 included many major venture capitalists and technology firms to discuss the government's strategy for AI. Sources said it was dominated by how AI can help improve public services, how it could be used to support university spinout companies, and how it can facilitate hiring for startups overseas.

The government says it has to make tough choices in order to plug a £22 billion gap in public finances left by the previous administration.

The minister for tech, Kyle, has spoken of a "bold approach" to AI. But some in the sector believe there is a scaling-back ambition for the area.