UK unveils ‘AI Action Plan’ to boost economy and create jobs
UK unveils ‘AI Action Plan’ to boost economy and create jobs

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The UK is ramping up its adoption of artificial intelligence, aiming to drive economic growth and create jobs with the launch of its ‘AI Opportunities Action Plan’.
Prime Minister Keir Starmer has agreed to take forward all 50 recommendations set out by AI adviser Matt Clifford in his AI Opportunities Action Plan.
“Artificial Intelligence is the defining opportunity of our generation,” Starmer said in a press release. “It is not a technology that is coming; a future revolution on the horizon. It is already here, materially changing lives – preventing illness in our NHS, creating exciting new companies in our economy, pushing the boundaries of scientific discovery in our universities. It will turbocharge every mission in this government’s plan for change. And the potential for further innovation is vast.”
The plan introduces new measures that will create dedicated ‘AI growth zones’ that speed up planning permission and give them the energy connections they need to power up AI.
“Artificial Intelligence will drive incredible change in our country,” Starmer said. “From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people. But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.”
The plan has three main pillars that will lay the foundations for AI to grow, boost adoption in existing private and public sectors, and keep the UK ahead of the pack internationally.
The first is to lay the foundations for AI to flourish in the UK. The first-ever AI growth zones will be set up. These are areas across the country that will speed up planning approvals for the rapid build-out of data centres, give them better access to the energy grid, and draw in investment from around the world.
The second is boosting adoption across public and private sectors. A new digital centre of government is being set up within DSIT (Department for Science, Innovation and Technology). The centre will scan for new ideas, pilot them in public sector settings, then scale them as far as they can go.
The third pillar will see a new team that will be set up to keep the UK at the forefront of emerging technology. This team will use the heft of the state to make the UK the ‘best place for business’. This could include guaranteeing firms access to data and energy.
“Our plan will make Britain the world leader,” Starmer said. “It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services.”
The plan comes as three tech companies – Vantage Data Centres, Nscale and Kyndryl – have committed to £14 billion investment in the UK to build the AI infrastructure the UK needs to harness the potential of this technology and deliver 13,250 jobs across the UK. That’s on top of the £25 billion in AI investment announced at the International Investment Summit.
Vantage Data Centres, which is working to build one of Europe’s largest data centre campuses in Wales, plans to invest over £12 billion in data centres across the UK, creating over 11,500 jobs in the process.
Kyndryl, an IT infrastructure services provider and a leading IT consultancy, announced plans to create up to 1,000 AI-related jobs in Liverpool over the next three years. This new tech hub will share the government’s ambition to roll AI out across the country to help grow the economy and foster the next generation of talent.
AI company Nscale has announced a USD 2.5 billion investment to support the UK’s data centre infrastructure over the next three years. They have also signed a contract to build the largest UK sovereign AI data centre in Loughton, Essex by 2026.
“This government is determined that the UK is not left behind in the global race for AI, that’s why the actions we commit to will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today. This is how we’re putting our Plan for Change in motion,” Science, Innovation, and Technology Secretary, Peter Kyle said.
“This action plan is the government’s modern industrial strategy in action. Attracting AI businesses to the UK, bringing in new investment, creating new jobs and turbocharging our ‘plan for change’,” Chancellor of the Exchequer Rachel Reeves, MP, said. “This means better living standards in every part of the United Kingdom and working people have more money in their pocket.”
The AI Action Plan comes as a new study (paywall) showed 51% of UK business leaders said they planned to “redirect investment from staff to AI”.
The full AI Opportunity Action Plan can be found here.