It’s early days, but there’s a lot of buzz around Keir Starmer’s recent AI action report. Promising to supercharge the UK’s AI ecosystem and create a ‘Silicon Valley‘ for Europe in the Oxford/Cambridge ‘brain belt’, it’s a great vision. But with only 50 pages and light on detail, I’m left wondering: where’s the concrete plan?
This could be a once-in-a-generation opportunity to generate jobs, boost the UK’s GDP by £31billion, and cement the UK as the number one location for AI investment and job creation.
Leading tech companies are also supporting the AI Opportunities Action Plan, with some pledging £14billon for different projects, which is expected to help create 13,250 jobs.
“We can learn from the US’s and EU’s approach – delivering the dynamism, flexibility and long-term stability that we know businesses want,” the government stated.
The question is, are we ready to make that leap?
I still feel there’s a disconnect between politics and commerce. To move forward, this needs more than just vision – it needs actionable strategies.
After speaking to CEOs and investors there seems to be four common themes that are required for this to really turn into reality and create a new hiring boom.
1 Build an AI ‘Megafund’
This initiative could mirror successful models seen in the US and China where substantial government and private sector funding boosts have led to accelerated research and development, and more rapid commercialisation of AI technologies.
2 Offer big tax incentives for companies coming to the UK
These incentives could be designed to attract startups and established tech companies to the UK, reducing their operational costs and encouraging them to invest in local talent and research initiatives.
3 Strengthen ties with the US to become the European gateway for US tech
This could involve creating joint ventures, fostering startup accelerators, or even setting up research hubs that work closely with US tech giants, leveraging their technology and expertise to boost the UK’s AI capabilities.
4 Develop strategies to tackle the UK’s AI ‘brain drain’ and keep the best talent
To retain top AI talent, the UK could increase funding for AI research at universities, create competitive job opportunities, and enhance quality of life and career prospects for AI professionals.
My personal view is that decreasing the tax burden for UK AI companies is something the current government can control and could implement quickly. I conducted a poll across our clients, who indicated that a tax reduction is much needed and would be a strong lever to increase growth and hiring.
A possible approach could be to align corporate tax rates with those of tech-friendly nations — such as nine per cent in Dubai, 12.5 per cent in Ireland, and 17 per cent in Singapore — for specific early-stage technology sectors, while maintaining the current corporate rate for large international companies that can afford it.
Alternatively, the government might consider launching ‘Low Tax Zones’ as previously mooted, choosing specific locations like Oxford or Cambridge for targeted AI investment.
Yes, the AI action report carries bold ambitions, but transforming vision into reality will take more than just enthusiasm. It’s time for the UK to roll up its sleeves and turn these promising ideas into solid strategies that can drive real growth.
