Unpacking the big announcement

AI to Power national renewal - what does the Government’s big AI announcement actually mean.

Last week the Government announced a huge package of AI investment. But what’s it all about? And what’s in it for your organisation?

You might have spotted the Government announced a significant AI investment last week to "power national renewal" through Artificial Intelligence. The numbers are huge - billions of pounds - and the language is full of phrases like "sovereign capability" and "growth zones". But what does it all mean?

At AIConfident, we take pride in simplifying all things AI for leaders of organisations for whom these headlines can feel a bit distant.

So for those of you not currently trying to build a supercomputer, we’re going to get underneath the jargon and explain exactly what has been announced and, crucially, what it means for you.

Understanding the announcement

A thriving UK AI economy requires both a supply of hoe grown AI capabilities, solutions and companies, as well as a demand from organisations like yours for the use and deployment of these products.

This particular announcement is mostly about growing the supply of UK-grown AI technologies, companies and research. Building the physical data centres, providing access to high powered computing capacity, and training the models.

The government wants to ensure UK companies have the infrastructure they need to build world-leading AI products right here, rather than relying on technology imported from the US or elsewhere.

Much of the ££ in the announcement are private sector investments, rather than Government money, but there are notable commitments for Government to act as a ‘First customer’ for UK AI startups, invest in AI for scientific discovery, and make compute available to researchers and start-ups.

There is less in this particular announcement about growing the demand for AI technologies - helping organisations like yours to actually adopt and use these tools to become more productive or deliver better services.

But it’s not been completely neglected, so read on to find out what to keep an eye out for.

What is an "AI Growth Zone"?

For companies to build and run modern AI systems, they need certain bits of infrastructure, in particular: physical space for data centres, huge computing power, and the electricity to run them.

An “AI Growth Zone" is a specific area where the government is making it easier to access these. They are relaxing planning rules and prioritising energy grid connections to encourage private companies to build their AI infrastructure in the UK.

The latest zone to be announced is in South Wales (from Newport to Bridgend), joining others planned for the North East, Oxfordshire, and North Wales.

The ambition with these is to create local technical jobs and ensure the UK has the physical "engine room" required for AI development.

What is "Sovereign AI"?

"Sovereign AI" is about control. Currently, many of the most powerful AI models and the computers they run on are owned by US tech giants.

The government’s definition of Sovereign AI covers two things:

1. The Infrastructure: Ensuring we have the data centres and supercomputers physically located here in the UK, so we aren't dependent on foreign supply chains.
2. The Models: Funding UK startups and researchers (via a new Sovereign AI Unit backed by £500m) to build their own AI models, ensuring we have domestic ownership of the technology itself.

What about organisations like yours who want to use this AI capability, not build it?

While the billions are going into infrastructure, the government’s AI Action Plan does include actions to stimulate demand, though the details of this are still emerging.

There were, though, two key actions tucked away in this announcement:

• A Focus on productivity: The appointment of economist Simon Johnson as an "AI Ambassador". His specific brief is to help public services and businesses use AI to improve productivity;
• Local support: If you are based in one of the four Growth Zones, there is a £5m fund allocated for local skills and business adoption. This is likely to be distributed through local business hubs, so keep an eye out for "digital adoption" grants or training pilots in your area.

Want to build your own AI confidence? Looking for someone to simplify the AI strategy for your leadership team? [Get in touch: catriona@aiconfident.co.uk].

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