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UK Prime Minister Keir Starmer has launched a £14 billion initiative to transform Britain into a global hub for artificial intelligence (AI), aiming to drive economic growth, create jobs, and enhance public services.
Announcing the Labour government’s 'AI Opportunities Action Plan' on Monday, Starmer detailed plans to establish AI Growth Zones, expand computing infrastructure, and integrate AI into various sectors. “Artificial Intelligence will drive incredible change in our country... we must move fast and take action to win the global race,” he said.
The plan includes investments by three major tech firms—Vantage Data Centres, Nscale, and Kyndryl—which have committed £14 billion to build AI infrastructure, creating over 13,000 jobs. The first AI Growth Zone will be set up in Culham, Oxfordshire, with work beginning on a new supercomputer to bolster the UK’s processing capabilities.
Key proposals include a National Data Library to unlock public data, an AI Energy Council to address energy demands, and measures to boost AI adoption across public and private sectors. Downing Street emphasized that AI is already transforming healthcare, with faster diagnoses and improved patient care, and its potential to revolutionize planning, education, and infrastructure.
Chancellor Rachel Reeves highlighted AI’s potential to add £47 billion annually to the UK economy over the next decade. “This means better living standards in every part of the United Kingdom,” she said.
The plan draws inspiration from the US and EU approaches to ensure flexibility and long-term stability for businesses. However, industry leaders, including techUK CEO Julian David, stressed the need for immediate action to maintain global competitiveness.
With this bold strategy, Starmer aims to cement the UK’s position as a leader in AI innovation, promising a wave of opportunities for citizens and businesses alike.
