The AI opportunity action plan: a blueprint for innovation, growth and global competitiveness

Date:
Tue, 29 Apr 2025 13:41:43 +0000

Description:
Collaboration between government and industry is key to establishing the UK
as a leader in AI innovation and adoption.

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Earlier this year, the government accepted, almost in its entirety, the proposed AI Opportunities Action Plan. The ambitious plan demonstrates a significant commitment to the development and deployment of Sovereign AI capabilities to deliver an AI vision for Britain.

UK government is bullish about AIs potential for economic growth, and rightly so. Its estimated that AI will contribute up to $15.7 trillion to the global economy by 2030. Today, Britain is the third-largest AI market in the world, behind the US and China. But the race is gaining pace. For the UK to meet its ambition to deliver the highest sustained growth in the G7 and remain a world leader, it needs a thriving domestic AI ecosystem.

The AI Action Plan represents a defining moment in advancing the UKs leadership in AI innovation. It prioritizes secure and sustainable AI infrastructure, high-quality data and a skilled workforce, all wrapped up in safe and trusted AI development and adoption. This is a crucial moment for UK enterprises. Those who seize the opportunities it presents and position the
UK as an AI maker, not an AI taker will succeed. Those who do not risk obsolescence. The business imperative for Sovereign AI

Sovereign AI represents a crucial strategy for establishing the UK as a
global leader in advanced AI capabilities. But the ramifications are broader than that. Sovereign AI also offers UK businesses a pathway to unlock the
full potential of AI while mitigating the risks associated with reliance on foreign technologies. To put that into context; more than 14 billion worth of inward investment and thousands of jobs were confirmed immediately after the AI Opportunities Action Plan was published.

With that in mind, we should view the AI Action Plan as a call to action to the private sector. UK businesses should seize this moment to embed
themselves within the AI ecosystem by forming alliances with technology partners and government stakeholders already championing sovereign AI. And there are more AI-businesses putting their weight behind the UKs AI strategy every day. These relationships are critical for scaling operations and
driving advancements in priority sectors such as healthcare, sustainable energy and education. What Sovereign AI in the UK looks like

Worldwide, we see three approaches to implementing Sovereign AI: government for government, government for industry, and government with industry. Any country or nation can adopt one or more of these models.

Sovereign AI compute is defined in the AI Action Plan as compute owned or allocated by the public sector (what we would class as government for government and government for industry). The AI Action Plan recommends a 10-year investment commitment of Sovereign AI Compute. That includes
expanding the capacity of the AI Research Resource (of which The Dawn supercomputer at the University of Cambridge, is part) twenty-fold by 2030.

This represents a significant expansion of the UKs AI compute capabilities
and will ensure that researchers and startups can access the necessary infrastructure to drive breakthroughs. Clearly the opportunities here are vast. But the UK does not need to own or operate all the compute it will
need. In fact, the AI Action Plan determines that Sovereign AI compute will almost certainly be the smallest component of the UKs overall compute portfolio.

We believe it is the third approach, Government with industry, that arguably presents a greater opportunity for UK enterprises. This collaborative model emphasizes codesigning national strategies with private industry, fostering
an environment where private industries can innovate, modernize and lead in
AI ecosystems.

For example, the Action Plan recommends establishing AI Growth Zones (AIGZs) to lead the accelerated build out of AI data centers. AI developers who
choose to work on shared AI priorities as part of these Growth Zones could benefit from a streamlined planning approvals process. There is even discussion about the possibility of relief schemes that incentivize private sector investment.

The public-private collaboration advocated for in the AI Action Plan will enable business and government to get the most from each other and play to their respective strengths. Government can provide policy frameworks and financial support, while private enterprise can contribute expertise, innovation and speedy execution. Crucially, the model also represents an opportunity for quick wins, with smarter procurement on the table, best practice sharing and even AI Sector Champions on hand to drive through adoption barriers. Targeted innovation for national growth

Sovereign AI provides a framework for developing AI solutions that address critical societal and economic challenges. By aligning their objectives with national priorities, such as those outlined in the AI Action Plan, businesses can create targeted innovations with a meaningful impact. For example, the UK ranks healthcare, sustainable energy and education as priority sectors for AI-driven transformation. By collaborating within these frameworks,
businesses can both contribute to national development and position
themselves as leaders in emerging AI markets.

The dual benefit of this approach lies in its localized impact. Innovations codeveloped with national-level goals in mind are more likely to find
support, funding and widespread adoption, making them less susceptible to external disruptions. This directly supports UK businesses in obtaining a competitive advantage against global counterparts, particularly in industries reliant on cutting-edge technologies. Paving the future with Sovereign AI

Sovereign AI is a defining element of the UKs vision to secure its position
as a global leader in AI. It empowers secure innovation and competitiveness and enables businesses to adapt to the rapidly changing data landscape. And
it provides those who want to start up and scale-up their businesses to play an active role in building a prosperous future for the UK.

UK business leaders must seize the opportunity to embed themselves in this evolving AI ecosystem. By aligning their strategies with national frameworks and taking advantage of government-supported partnerships, they can position themselves at the forefront of this transformational wave.

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