Chancellor to announce £100m investment in Britain’s AI industry

Amid constraints on election-related spending due to fiscal pressures, Hunt is expected to unveil a five-year funding strategy, amounting to £100m, aimed at bolstering the Turing Institute's capabilities in advancing data science and AI. Established in 2015 and named in honour of Alan Turing, a trailblazer in computer science and mathematics who passed away in 1954, the institute is poised to embark on new research frontiers with this financial injection.

The investment will target research in three critical sectors where AI is poised to make substantial impacts: healthcare transformation, environmental protection, and the enhancement of defence and national security. According to the Treasury, these funds are set to directly benefit the public by improving healthcare outcomes and addressing biodiversity issues.

Since assuming office in October 2022, Hunt has voiced his ambition to transform Britain into a global scientific hub, akin to Silicon Valley, leveraging the nation’s pension funds to convert innovations into viable commercial products.

Hunt views AI as a key driver in rectifying the UK's lagging productivity, with studies indicating that the adoption of generative AI could potentially boost the global economy by as much as $4.4tn (£3.5tn) annually.

The chancellor aims to leverage the tech revolution to spur economic growth and empower researchers to make breakthroughs in various domains, including medicine, aerospace, and climate change, thereby benefiting the entire UK. By building on previous initiatives and utilising Britain's unique health data resources, Hunt believes the additional funding will enable the Turing Institute to significantly contribute to the nation’s health and prosperity.

A Treasury spokesperson highlighted the strategic importance of this investment, stating: “With the UK being home to a third of Europe’s AI companies, investing in this critical technology presents an essential opportunity to expand the economy and secure a prosperous future for Britain. Supporting the Turing Institute marks a further step in our commitment to leading the way in how technology enhances our lives.”

Stuart Munton, Chief for Group Delivery at AND Digital said: “With businesses scrambling to implement AI effectively and responsibly, this extra funding will provide a major boost for Britain’s digital capabilities. The seismic changes this technology is bringing to the workplace are still being explored, but in the long term will lead to rapid increases in productivity, which in turn will require a new generation of highly trained specialist staff to unlock its full potential. "The UK placed 4th in the World AI rating last August, however we need the UK's AI investments from government and businesses to accelerate if the gap between us and the leaders is not to widen."

Michael Thornton, Senior Director, Public Sector at Investigo, part of The IN Group, said: “AI is set to shake up traditional working models beyond all recognition, leading to a surge in demand for a digitally adept workforce that is fluent in all aspects of the technology. The problem is that even before the advent of widespread AI adoption, there was a gaping skills crisis engulfing UK PLC and public sector organisations.  

“With this in mind, it’s encouraging to see substantial sums being invested to help drive research and training in such a crucial area of the economy, but much more needs to be done to ensure the next generation gets access to the skills they need to fully capitalise on its benefits and long-term opportunities.”

Simon Ward CEO and Founder of Inspired Thinking Group (ITG) said: “This funding is a major boost for the UK’s rapidly growing technology industry and will play a crucial role in tackling digital skills shortfall which has long hampered the potential of UK PLC. With generative AI, automation and chatbots reshaping traditional working models, getting access to staff with the latest skills and spreading this knowledge across the workforce is vital for organisations seeking to maintain a competitive edge. Economies that embrace and optimise the latest digital capabilities will thrive in the long term, those that fail to do so will inevitably fall behind.”