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Britain unveils its first national AI strategy, pledging £5 billion to drive growth and safety

London – In a landmark speech at the Southbank Centre on Tuesday, Prime Minister Rishi Sunak announced the United Kingdom’s first national artificial‑intelligence strategy. The strategy, titled AI for Britain, is a £5 billion, five‑year programme aimed at boosting the country’s AI research, industry, and regulatory frameworks while positioning Britain as a global leader in responsible AI.

The government has committed the funding through a mix of public investment and private partnership, with the Department for Business, Energy and Industrial Strategy (BEIS) leading the rollout. A central element is the creation of a new UK AI Board, a cross‑ministerial body that will oversee the implementation of the strategy and liaise with industry, academia and civil society. The board will be chaired by the UK’s Chief Scientific Adviser and will sit on the existing UK Space Council and Digital Infrastructure Board to ensure integration across technology sectors.

Three pillars of the strategy

1. Research and development.
The strategy will fund a new national AI research institute, set to launch in 2025 in collaboration with the UK’s leading universities – Cambridge, Oxford, Imperial College London and the University of Edinburgh. The institute will focus on three core research areas: Explainable AI, Robustness and security, and AI for health and the environment. The government will also double its investment in the National AI Centre, an existing hub that currently hosts around 200 researchers. “AI research is the engine of future prosperity,” Sunak said. “We are investing heavily in the people and projects that will bring us a competitive edge.”

2. Talent and skills.
A £700 million programme will be set up to expand AI training across schools, universities and the workplace. This includes scholarships for under‑represented groups, the expansion of the AI Apprenticeship Programme, and partnerships with industry to provide real‑world project experience. A new AI Curriculum Review will be carried out in partnership with the Department for Education to integrate data science, machine learning and ethics into secondary education. The strategy also proposes the establishment of a National AI Ethics Fellowship to support researchers working on the ethical implications of AI.

3. Regulation and trust.
The UK will introduce a new AI Act, modeled on the European Union’s draft but adapted to the UK’s regulatory environment. The act will create an Artificial Intelligence Regulatory Authority (AIRA) responsible for certifying AI systems, setting safety standards, and handling incidents. It will also establish a Consumer AI Protection Fund to support individuals harmed by AI decisions. “Trust is the foundation of any AI ecosystem,” Sunak said. “We are building the rules and the oversight mechanisms that will protect citizens and businesses alike.”

International collaboration and market access

Britain’s strategy emphasises the importance of global cooperation. The UK will seek to extend the Digital Trade Partnership with the EU, which was launched after the 2020 trade talks, to include a new AI Data Exchange Agreement. This agreement will enable secure data sharing across borders while ensuring compliance with data protection laws. In the same vein, the UK will negotiate a bilateral AI agreement with the United States, building on the existing UK‑US Strategic Dialogue on AI that has already produced joint research grants.

The strategy also announces the creation of a UK AI Innovation Hub in the city of Leeds, aimed at supporting start‑ups with access to seed funding, office space and mentorship. The hub will be co‑operated with the Industrial Strategy Council and the Northern Powerhouse Partnership, highlighting the government’s commitment to regional development.

Industry reaction

Tech giants and start‑ups welcomed the announcement. Google’s UK chief technology officer, Alex Murray, said, “This strategy confirms that the UK remains at the forefront of AI research and innovation. We look forward to working with the UK AI Board and the AI Regulatory Authority to shape a future that is both innovative and responsible.” The UK startup Reframe, whose AI‑driven legal platform has already attracted over £20 million in funding, said the new funding would accelerate its expansion into European markets.

Meanwhile, civil society organisations praised the ethics focus but urged a stronger public consultation phase. AI Now UK, a think‑tank specialising in AI ethics, stated, “While the funding is welcome, the government must continue to engage with the public on the societal implications of AI and ensure that the regulatory framework is transparent and inclusive.”

Economic impact

According to a joint report from the BEIS and the National Institute of Economic and Social Research (NIESR), the AI strategy could add up to £60 billion to the UK economy by 2030, create 200,000 new jobs, and raise productivity by up to 5 percent. The report notes that the UK’s AI workforce currently lags behind the EU by 15 percent, a gap that the talent programme aims to close.

Looking ahead

The strategy will be published in full next month and will include a Implementation Roadmap that outlines short‑term milestones for 2024‑25 and a Strategic Impact Assessment to be released in 2026. The government will hold a series of stakeholder workshops in September to gather feedback on the regulatory framework and to refine the investment plan.

With this comprehensive approach, the UK is positioning itself as a global hub for AI research, ethical deployment and cross‑border data collaboration. The success of AI for Britain will depend on sustained investment, transparent governance, and a commitment to ensuring that the benefits of AI are shared widely across society.