AI to power national renewal as government announces billions of additional investment

AI to power national renewal as government announces billions of additional investment and new plans to boost UK businesses, jobs and innovation.

A major package of new reforms and investment will put AI at heart of government’s mission to drive growth, create jobs and spread prosperity across the country.

  • Thousands of new jobs and billions of pounds of investment in AI announced across the UK as driver of growth – including in Wales, Bristol and London
  • A new AI Growth Zone in South Wales will create more than 5,000 new jobs for local communities over the next decade, including at former Ford Bridgend Engine Plant
  • New opportunities for British AI firms to grow and AI innovation to flourish, expanding free access to compute for British researchers and scientists 
  • Brilliant scientists also backed to use AI, with up to £137 million to drive breakthroughs and develop new drugs, cures and treatments

Ahead of the Budget next week, these plans will ensure new investment boosts jobs and growth – giving British businesses the opportunity to scale and compete internationally as part of our Modern Industrial Strategy. International companies are also hosting new centres in the UK and British companies are increasing investment – with £24.25 billion in private investment committed in this last month alone.

Companies like Vantage Data Centers and Microsoft are also joining forces with the government to deliver another AI Growth Zone. Set in South Wales, £10 billion of investment will unlock at least 5,000 jobs, including in industrial heartlands like the former Ford Bridgend Engine Plant. 

AI Growth Zones will help transform local economies and ensure no community is left behind, with £5 million of government funding for each Growth Zone to boost business adoption and invest in the skills of local workers.

To ensure British businesses and researchers stay at the forefront of AI, new plans will back firms and scientists with the right tools to succeed and to seize the opportunity for British workers and growth.

  • The government will act as a “first customer” for promising UK start-ups who are building high-quality AI hardware products but currently struggle to get off the ground without investment. The new “advance market commitment” is backed up by up to £100 million of government support to give British startups the opportunity for a competitive edge and to win customers in a multibillion-dollar global market. AI Growth Zone data centres will house billions of pounds of hardware. Our goal is to see British chips deployed alongside established vendors.
  • Alongside this, venture capitalist James Wise will chair the Sovereign AI Unit, backed by almost £500 million in investment to help build and scale AI capabilities on British shores. The unit will bring together government, industry and investors, to become the go-to fund for high potential start-ups and scale-ups in the UK. 
  • New AI ambassadors will help maximise the benefits of AI for Britain. Nobel prize winning British Massachusetts Institute of Technology (MIT) economist and former Chief Economist of the International Monetary Fund (IMF) Simon Johnson will act as a standard bearer with public services and businesses to help them take up this brilliant technology to boost productivity. Monzo Co-founder and Y Combinator General Partner Tom Blomfield will champion British start-ups to scale up and attracting talent and investment. And Google DeepMind VP of Research Raia Hadsell will champion the UK’s place at the forefront of AI innovation and security. 
  • The government will offer more free compute to British researchers and British startups so they can train new AI models and deliver scientific breakthroughs. The process to spend up to £250 million on compute is being launched today. 
  • A new strategy is also being unveiled to make sure AI supercharges scientific discovery backed by up to £137 million in government funding. Its first mission will be focused on harnessing AI to speed up the research of new drugs and treatments - giving patients a new lease of life and fresh hope that their conditions can be better managed.

Secretary of State for Science, Innovation, and Technology, Liz Kendall said: 

"We are ambitious for our country and believe Britain’s best days lie ahead. Today we’re announcing a package of measures that ensure we seize the opportunities to get jobs and growth in every part of the country.

"The backing by international investors today is a vote of confidence in the UK – and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings. This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change."

Chancellor of the Exchequer Rachel Reeves said: 

"This government promised to unlock growth and that is exactly what we are doing.

"Today’s confirmation of our fourth AI Growth Zone is our Plan for Change in action - creating thousands of jobs and unlocking new investment for local communities in the industries of the future, cementing our position as Europe’s leading tech sector."

Secretary of State for Wales Jo Stevens said: 

"Wales will now have 2 brand-new AI Growth Zones bringing thousands of jobs to both North and South Wales and driving economic growth across the country.

"South Wales is already the home of a growing tech industry and this major investment in the region will help cement the UK’s place as a global leader in AI."

Several sites will make up a new AI Growth Zone in South Wales – dedicated areas of AI development – stretching along the M4 corridor from Newport to Bridgend and has the potential to harness over 1GW by early 2030s.  

At least 5,000 jobs are set to be delivered as a result, spanning construction roles which will now spring up as a result of building work, to long-term careers in AI research and development. South Wales will also benefit from up to £5 million in government support to boost business adoption and skills in AI Growth Zones, while tech firms behind the site, like Vantage Data Centers, are committing today to working with universities across South Wales to boost skills in AI. This will develop the next generation of AI leaders at source and switch on the taps that will deliver a pipeline of talent for years to come. Building on these partnerships, NVIDIA’s continued investments and collaborations are helping strengthen the UK’s role as a global hub for AI development.

From: HM Treasury, Department for Science, Innovation and Technology, Wales Office, The Rt Hon Liz Kendall MP, The Rt Hon Rachel Reeves MP and The Rt Hon Jo Stevens MP

 

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