Starmer sets out new AI action plan to cement Britain’s global tech dominance

Prime Minister Keir Starmer has outlined a sweeping vision for the UK to become the world leader in artificial intelligence, pledging a distinctively British approach to regulation while unleashing AI’s potential to revive the country’s sluggish economy.

Unveiling the government’s “AI Opportunities Action Plan”, Starmer vowed to break from both the US and EU regulatory paths. His aim is to create an environment that encourages innovation and investment, including the creation of dedicated AI growth zones to fast-track approvals for data centres and other key infrastructure.

Among the 50 policy recommendations are measures to expand the UK’s supercomputing capacity twentyfold by 2030, as well as enabling public services to become more efficient through AI-led automation. The government hopes a focus on education and talent development will help transform everything from local councils detecting potholes to schools reducing bureaucracy, freeing people to deliver more “human-centred” services.

The Labour administration also announced that three tech firms have committed £14 billion in AI-related investments, pledging to create over 13,000 new jobs. Yet criticisms remain. The Conservative opposition has questioned Labour’s record on funding after a previous supercomputer project was scrapped, while Shadow Science Secretary Alan Mak accused the government of failing to provide enough resources to genuinely power the UK’s AI leadership ambitions.

In a nod to the technology’s risks, the plan includes a commitment to complete a review of AI’s impact on intellectual property rights. Concerns persist regarding AI-driven misinformation, deepfake content and possible job losses, although senior minister Pat McFadden emphasised the importance of viewing the technology’s potential in a positive light.

Business leaders in AI and HR professionals alike welcomed the action plan. Gordon Baggott of 4most hailed it as a “pivotal moment” for economic growth, while Hayfa Mohdzaini, senior policy and practice adviser for technology for the CIPD, the professional body for HR and people development, said: “We welcome the government’s plans to boost the use of AI across the UK’s public services, which could bring significant productivity gains to the UK economy. Letting AI handle repetitive and administrative tasks can help workers deliver more human public services. Used well, AI can enhance jobs to make them more fulfilling for people.

“However, it will be important for employers to monitor how the technology is used and manage risk. A CIPD poll of over 1,500 people in January 2025 found that six in 10 respondents would trust AI to inform, but not make, important decisions at work. This highlights the importance of human oversight when introducing this technology.

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Starmer sets out new AI action plan to cement Britain’s global tech dominance