The government has announced a raft of new reforms to its AI policy, backed by major investments, to shore up the UK’s place in the sector ahead of the Autumn Budget.
First customer
Among these is a “first customer” policy wherein the government will act as a first customer for promising British startups developing AI hardware that have not been able to get off the ground without substantial investment.
This “advance market commitment” has been backed by £100m of government funding that will go towards domestic startups.
Alongside this, Balderton Capital partner James Wise has been selected to chair the Sovereign AI Unit, backed by almost £500m, that will fund the scaling of British AI capabilities and act as a go between for government, industry and investors.
The government hopes for the Sovereign AI Unit to become the “go-to fund” for startups and scaleups in AI.
“The backing by international investors today is a vote of confidence in the UK – and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings,” said Secretary of State for Science, Innovation, and Technology, Liz Kendall.
“This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change.”
AI Growth Zones
The AI Growth Zone scheme, which grants special allowances for certain regions to be able to rapidly build digital infrastructure, has been expanded with a new zone selected in South Wales.
The government projected the zone to create more than 5,000 jobs locally and will sit alongside existing growth zones in North Wales, Oxfordshire and the North East.
“Wales will now have 2 brand-new AI Growth Zones bringing thousands of jobs to both North and South Wales and driving economic growth across the country,” said Secretary of State for Wales Jo Stevens .
“South Wales is already the home of a growing tech industry and this major investment in the region will help cement the UK’s place as a global leader in AI.”
AI ambassadors
Top industry and research figures have been called on to help “maximise the benefits of AI for Britain”.
Among them is Mozo co-founder and Y Combinator general partner Tom Blomfield, Google DeepMind VP Raia Hadsell and economist Simon Johnson.
Also listed in the reforms are plans to offer more free compute to British researchers and businesses, with plans to spend up to £250m on the scheme, and a new strategy to ensure AI improves scientific discovery, backed by £137m.
“This government promised to unlock growth and that is exactly what we are doing,” said Chancellor Rachel Reeves.
“Today’s confirmation of our fourth AI Growth Zone is our Plan for Change in action – creating thousands of jobs and unlocking new investment for local communities in the industries of the future, cementing our position as Europe’s leading tech sector.”
