UK Government Unveils AI Action Plan to Boost Growth and Public Services

UK Prime Minister Sir Keir Starmer on Monday (January 13th, 2025) outlined the government’s ambitious plan to leverage artificial intelligence (AI) to rejuvenate public services and drive economic growth.

The “AI Opportunities Action Plan” aims to position the UK as an AI superpower, mirroring the ambitions of previous administrations.

The plan, backed by £14 billion in private sector investment and creating 13,250 jobs, will see the establishment of AI Growth Zones across the country. These zones will focus on AI development and deployment, with applications ranging from AI-powered pothole detection to streamlining administrative tasks for public sector workers.   

“AI will drive incredible change in our country,” said Sir Keir, emphasizing the government’s commitment to ensuring AI “works for working people.”  

Key aspects of the plan include:

Investing in a new supercomputer. Reversing a previous decision to scrap a supercomputer at Edinburgh University, the government will invest in a new supercomputer to enhance AI research and development capabilities.

AI-powered public services: AI will be integrated into public services to improve efficiency and service delivery, such as faster cancer diagnoses and streamlined administrative processes for businesses.

Focus on AI Growth Zones: These designated areas will foster AI innovation and create new job opportunities.

However, the plan has drawn criticism. Shadow science secretary Alan Mak accused Labour of undermining its own economic goals, while some industry experts argued that the plan overemphasizes the role of large tech companies and neglects the contributions of smaller AI businesses. 

Some also believe the announcement fails to address the safety concerns of many consumers.  Says Rocio Concha, Which? Director of Policy and Advocacy:

“Artificial Intelligence (AI) holds immense potential for transforming businesses and benefiting consumers by enhancing their experiences and choices. However, the government’s blueprint does not mention consumers and many remain sceptical about using AI technologies. Which? research has also uncovered examples of AI chatbots putting consumers at risk, for example by recommending unsafe products to shoppers and enabling more sophisticated scams. 

“The government must put robust regulatory mechanisms in place to monitor, evaluate and control AI systems, alongside best practice guidelines and access to clear and accessible redress schemes, as these will be essential for protecting consumers and empowering them to use these technologies with confidence.” 

However, Rachid Hourizi MBE, Director of the Institute of Coding was more optimistic about the announcement and the potential for unlocking the UK economy: 

“This marks an encouraging step forward for the economy. It’s great to see the Government continuing to grow their support for AI and the focus as a key driver of growth, and the next vital step is to ensure upskilling across all roles becomes a national priority.

“With 21.7 million working-age adults currently lacking the essential digital skills needed in today’s workplaces, including AI, a government-led focus on developing these skills could unlock incredible potential for the UK economy.”