Prime Minister sets out blueprint to turbocharge AI
Source: gov.uk (2025-01-13)

Artificial intelligence will deliver a decade of national renewal, as part of a new plan announced today (13 January 2025).

- AI to drive the Plan for Change, helping turbocharge growth and boost living standards
- public sector to spend less time doing admin and more time delivering the services working people rely on
- dedicated AI Growth Zones to speed up planning for AI infrastructure
- £14 billion and 13,250 jobs committed by private leading tech firms following AI Action Plan
Artificial intelligence will be unleashed across the UK to deliver a decade of national renewal, under a new plan announced today (13 January 2025).

In a marked move from the previous government’s approach, the Prime Minister is throwing the full weight of Whitehall behind this industry by agreeing to take forward all 50 recommendations (https://www.gov.uk/government/publications/ai-opportunities-action-plan-government-response/ai-opportunities-action-plan-government-response) set out by Matt Clifford in his game-changing AI Opportunities Action Plan (https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan).

AI is already being used across the UK. It is being used in hospitals up and down the country to deliver better, faster, and smarter care: spotting pain levels for people who can’t speak, diagnosing breast cancer quicker, and getting people discharged quicker. This is already helping deliver the government’s mission to build an NHS fit for the future.

Unveiling details of the government’s AI Opportunities Action Plan today, the Prime Minister will say AI can transform the lives of working people – it has the potential to speed up planning consultations to get Britain building, help drive down admin for teachers so they can get on with teaching our children, and feed AI through cameras to spot potholes and help improve roads.

Backing AI to the hilt can also lead to more money in the pockets of working people. The IMF estimates that – if AI is fully embraced – it can boost productivity by as much as 1.5 percentage points a year. If fully realised, these gains could be worth up to an average £47 billion to the UK each year over a decade.

Today’s plan mainlines AI into the veins of this enterprising nation – revolutionising our public services and putting more money in people’s back pockets. Because for too long we have allowed blockers to control the public discourse and get in the way of growth in this sector.

The plan puts an end to that by introducing new measures that will create dedicated AI Growth Zones that speed up planning permission and give them the energy connections they need to power up AI.

The UK occupies a unique place in the world. 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 Prime Minister, Keir Starmer, said:

Artificial Intelligence will drive incredible change in our country. From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.

But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.

Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services.

That’s the change this government is delivering.

It comes as three major tech companies – Vantage Data Centres, Nscale and Kyndryl – have committed to £14 billion investment in the UK to build the AI infrastructure the UK needs to harness the potential of this technology and deliver 13,250 jobs across the UK. That’s on top of the £25 billion in AI investment announced at the International Investment Summit.

Vantage Data Centres – which is working to build one of Europe’s largest data centre campuses in Wales – plans to invest over £12 billion in data centres across the UK – creating over 11,500 jobs in the process.

Kyndryl – the world’s largest IT infrastructure services provider and a leading IT consultancy – announces plans to create up to 1,000 AI-related jobs in Liverpool over the next three years. This new tech hub will share the government’s ambition to roll AI out across the country to help grow the economy and foster the next generation of talent.

Nscale – one of the UK’s leading AI companies – has announced a $2.5 billion investment to support the UK’s data centre infrastructure over the next three years. They have also signed a contract to build the largest UK sovereign AI data centre in Loughton, Essex by 2026.

The plan includes initiatives that will help make the UK the number one place for AI firms to invest, which is vital if Britain is to be at the forefront of this industry and be a changemaker rather than a change-taker. The key changes include:
- forging new AI Growth Zones to speed up planning proposals and build more AI infrastructure. The first of these will be in Culham, Oxfordshire
- increasing the public compute capacity by twentyfold to give us the processing power we need to fully embrace this new technology - this starts immediately with work starting on a brand new supercomputer
- Matt Clifford has been appointed as advisor to the PM on AI opportunities, bringing together a team across No10 and DSIT to seize the opportunities of AI and build the UK’s sovereign capabilities. Nobel Prize-winner, Sir Demis Hassabis will also provide expertise to the government to help the UK seize the opportunities of AI.
- creating a new National Data Library to safely and securely unlock the value of public data and support AI development
- a dedicated AI Energy Council chaired by the Science and Energy Secretaries will also be established, working with energy companies to understand the energy demands and challenges which will fuel the technology’s development - this will directly support the government’s mission to become a clean energy superpower by tapping into technologies like small modular reactors.
Taken together, the 50 measures will make the UK irresistible to AI firms looking to start, scale, or grow their business. It builds on recent progress in AI that saw £25 billion of new investment in data centres announced since the government took office last July.

This Action Plan is also at the heart of the government’s Industrial Strategy and the first plank of the upcoming Digital and Technology Sector Plan, to be published in the coming months.

Science, Innovation, and Technology Secretary, Peter Kyle said:

AI has the potential to change all of our lives but for too long, we have been curious and often cautious bystanders to the change unfolding around us. With this plan, we become agents of that change.

We already have remarkable strengths we can tap into when it comes to AI – building our status as the cradle of computer science and intelligent machines and establishing ourselves as the third largest AI market in the world.

This government is determined that the UK is not left behind in the global race for AI, that’s why the actions we commit to will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today. This is how we’re putting our Plan for Change in motion.

The Chancellor of the Exchequer Rachel Reeves MP said:

AI is a powerful tool that will help grow our economy, make our public services more efficient and open up new opportunities to help improve living standards.

This action plan is the government’s modern industrial strategy in action. Attracting AI businesses to the UK, bringing in new investment, creating new jobs and turbocharging our Plan for Change. This means better living standards in every part of the United Kingdom and working people have more money in their pocket.

Matt Clifford CBE said:

This is a plan which puts us all-in - backing the potential of AI to grow our economy, improve lives for citizens, and make us a global hub for AI investment and innovation.

AI offers opportunities we can’t let slip through our fingers, and these steps put us on the strongest possible footing to ensure AI delivers in all corners of the country, from building skills and talent to revolutionising our infrastructure and compute power.

Sir Demis Hassabis said:

The AI Opportunities Action Plan will help the UK unleash AI’s potential to drive growth, accelerate scientific discovery and tackle important, real-world problems.

It’s great that Matt Clifford will be leading this important initiative, which will help the UK continue to be a world leader in AI.

Notes to editors

The plan has 3 main pillars that will lay the foundations for AI to grow, boost adoption in existing private and public sectors, and keep the UK ahead of the pack internationally.

First – laying the foundations for AI to flourish in the UK.

The first ever AI Growth Zones will be set up. These are areas across the country that will speed up planning approvals for the rapid build-out of data centres, give them better access to the energy grid, and draw in investment from around the world.

The first of these will be in Culham, Oxfordshire – home to the UK’s Atomic Energy Authority and some of the brightest scientific minds in the world.

This will also serve a testing ground to drive forward research on how sustainable energy like fusion can power our AI ambitions.

More will be announced in the Summer, with a particular focus on de-industrialised areas of the country with access to power and strong support from local government.

That means local jobs, improved communities, and a growing economy – all of which puts more money in people’s pockets.

Build a brand new supercomputer with enough AI power to play itself at chess half a million times a second. This is part of the plan to increase compute capacity by twenty-fold by 2030 – supercharging our capacity to power AI products.

Our ten-year compute plan also includes a commitment to rapidly develop and implement a long-term compute strategy that will bring together the key ingredients for AI – compute, data, and skills – to keep us at the forefront of the technology and attract the best brains in the world.

That gives the industry the long-term stability it needs to choose the UK as the place to invest – helping drive up growth and deliver our plan for change.

Second – boosting adoption across public and private sectors

A new digital centre of government is being set up within DSIT. This will revolutionise how AI is used in the public sector to improve citizens lives and make government more efficient. It will scan for new ideas, pilot them in public sector settings, then scale them as far as they can go.

Driving adoption across all sectors in the UK. The Prime Minister has personally written to his entire Cabinet, tasking them with driving AI adoption and growth in their sectors, and making that a top priority for their Departments.

Third – keeping us ahead of the pack

A new team will be set up to keep us at the forefront of emerging technology. This team will use the heft of the state to make the UK the best place for business. This could include guaranteeing firms access to data and energy.

Taken together, this package will set us on course to full embrace the potential of AI – making it work for Britain.

Industry reaction to the AI Opportunities Action Plan

Darren Hardman, CEO, Microsoft UK, said:

The scale of this government’s ambition for AI development and adoption in the UK is exactly what’s needed to drive economic growth, transform public services and create new opportunities for all.

Maintaining the UK’s position as a global leader in AI demands innovation and investment across the public and private sectors and Microsoft is fully committed to helping make this vision a reality.

Mike Beck, Global Chief Information Security Officer at Darktrace, said:

The ambitious and wide-ranging recommendations in the AI Opportunities Action Plan have the potential to turn AI into an engine for the UK economy.

As a home-grown AI company, we know that the UK has world-class research talent, brilliant institutions and a strong tech ecosystem. Governments can and should move at a faster pace to help realise the benefits of rapid technological change, and we look forward to the government swiftly implementing this Plan. This will help to turn AI from abstract opportunity to real-world benefit in offices and shop floors across the country.

Companies and consumers also need to be confident that AI innovation is safe and secure. The upcoming Cyber Security and Resilience Bill offers the opportunity to better safeguard data and AI infrastructure, and it will be important to ensure a more digitised and AI-enabled public sector is secure and trusted.

Dario Amodei, Co-Founder and CEO of Anthropic, said:

The UK’s AI Opportunities Action Plan is a bold approach that could help unlock AI’s potential to solve real problems. By combining infrastructure investment with strategic planning, the UK could be among the first and fastest governments in the world to transform how services are delivered to its citizens.

We look forward to working with them to turn this vision into a reality.

Alex Kendall OBE, Co-Founder and CEO, Wayve, said:

Embodied AI in highly regulated sectors, like automated vehicles, will require international regulatory collaboration.

I’m excited to see the government use the levers at its disposal to help make the UK’s leading AI startups winners on the global stage. We now welcome the new targeted support for international expansion for AI scale-ups, and will pursue our global growth goals with the confidence that we have the UK government’s full support.

Chris Lehane, Chief Global Affairs Officer at OpenAI, said:

From the locomotive to the Colossus computer, the UK has a rich history of leadership in tech innovation and the research and development of AI.

The government’s AI action plan - led by the Prime Minister and Secretary Peter Kyle - recognises where AI development is headed and sets the UK on the right path to benefit from its growth. The UK has an enormous national resource in the talent of its people, institutions and businesses which together, can leverage AI to advance the country’s national interest.

Aidan Gomez, Co-Founder and CEO of Cohere, said:

With AI unlocking productivity gains and boosting business growth, we welcome the government’s focus and attention to foster this generational economic transformation.

Cohere has long viewed the UK as a hotbed of industry talent and a market highly supportive of technology innovation, which is why we were among the earliest foundational model companies to build a major presence in the country, and why we have doubled down here over the last year.

Tim Bestwick, Deputy CEO, UK Atomic Energy Authority (UKAEA), said:

AI and High-Performance Computing are central to UKAEA’s mission to lead the delivery of sustainable fusion energy.

UKAEA welcomes the AI Opportunities Action Plan and its vision for building cutting-edge AI infrastructure to drive innovation and develop the ‘industries of the future’. As highlighted in the Action Plan, Culham Campus’ high-capacity and connection to the UK’s national electricity grid, coupled with its available land on the Campus, positions it as a prime location for deploying substantial computing facilities.

Julian David OBE, CEO of techUK, said:

Through this announcement the Prime Minister has set out how the Government sees AI as central to their plan for change.

These well thought out initiatives will boost the UK’s AI capabilities with positive effects across our society and economy.

Now that the government has set out its Plan, it is time to act, and at pace. To drive new investment, Industry will want to see more detail on how this plan will be actioned within the next six months, particularly as we face growing competition from other countries.

Alison Kay, Vice President, UK and Ireland at Amazon Web Services (AWS), said:

The UK government’s AI Opportunities Action Plan will play an important role in helping the UK to unlock the full potential of AI, and in doing so, boost productivity, enhance economic growth, and improve public services. At AWS, we’ve seen first-hand the benefits that digital technologies like AI can bring, and that’s why we’ve announced plans to invest £8 billion over the next five years building, operating, and maintaining data centres in the UK.

By putting close industry collaboration and public-private partnership at the heart of the government’s agenda, every citizen, community and business in every region of the UK will have the opportunity to realise the benefits of AI, and thrive and grow.

Mike Mattacola, Chief Business Officer at CoreWeave, said:

We welcome the AI Opportunities Action Plan as a crucial step in supporting and scaling the UK’s thriving AI sector, helping the country to compete on an international stage.

CoreWeave’s commitment to the UK is reflected in our significant investments throughout 2024, including the establishment of our European headquarters in London. Having delivered on our commitment to have two large-scale operational data centres by the end of 2024, CoreWeave is delivering critical compute infrastructure needed to boost AI progress in the UK and adding high value jobs across the country.

Vishal Marria, Founder and CEO, Quantexa, said:

At Quantexa, we’ve seen first-hand how AI can drive transformative outcomes with industry leading organizations and through our work with government. I’m pleased to see the UK government’s commitment to unlocking the full potential of AI through its AI Opportunities Action Plan.

This plan demonstrates visionary leadership in fostering innovation, enhancing public sector productivity, and enabling growth across the economy, ensuring the UK remains a global leader in AI for years to come. I am confident in our government’s approach of building an AI ecosystem that balances opportunity with responsibility. This will set the stage to deliver sustainable growth and long-term societal impact. I fully support this plan and look forward to working with the government in this exciting phase of the UK’s AI journey.

Zahra Bahrololoumi CBE, CEO, Salesforce UK and Ireland, said:

Businesses in the UK are in a prime position to fully unlock the opportunities of AI, thanks to a strong innovation culture and risk-based laws. That is why Salesforce chose the UK as the location of its first-ever AI Centre, building on our commitment to invest $4BN in our UK operations to harness the transformational power of AI.

In the coming year we will see more and more businesses embrace innovative solutions such as agentic AI to tackle everyday tasks, but they need investment and expert guidance to unleash long-term value and productivity gains.

The AI Action Plan is a forward-thinking strategy to boost AI adoption and drive growth in the UK. We’re encouraged by the UK’s bold vision for AI and emphasis on transparency, safety, and collaboration, which aligns with our commitment to build trusted AI solutions that empower organisations while safeguarding privacy and equity.

We look forward to working closely with the UK government and other stakeholders to continue to build digital resilience, and ensure AI benefits everyone in society.

Siobhan Wilson, Senior Vice President and UK Country Leader, Oracle, said:

AI is helping revolutionise the way businesses and the public sector operate. It enables new ways of working that can help drive innovation and success. The publication of the Action Plan is an important step to help continue AI adoption across the UK. At Oracle we are providing a full set of solutions to help organisations use AI securely and efficiently, which we expect will accelerate economic prosperity and growth for our customers and the nation.

Dom Hallas, Executive Director of Startup Coalition, said:

The AI Opportunities Action Plan provides a bold vision for the future of the UK economy. There’s now a clear roadmap for the government to harness the UK’s AI potential. Following it will unlock huge opportunities not just for British tech startups to succeed, but for the British public to benefit from better public services and tech-enabled economic growth.

Séamus Dunne, Managing Director at Digital Realty in the UK and Ireland, said:

We’re excited to support CoreWeave and the UK government’s ambitious plans to position the UK as a global AI powerhouse. With its exceptional talent, robust business ecosystem, and forward-thinking government, the UK is uniquely positioned to lead in this transformative field. We’re proud to contribute to this vision by providing the cutting-edge infrastructure that will help unlock the full potential of AI and cement the UK’s leadership on the global stage.

Naomi Weir, Director, Technology and Innovation, CBI, said:

Given the scale of the growth opportunity and the coordinated action needed to deliver on it across public and private sectors, it is great to see the Prime Minister personally taking a lead on this agenda.

This plan rightly sets out the size of the prize for people and the economy. The government are to be credited for committing wholesale to delivering on its wide-ranging recommendations. Now is the time for bold leadership and strong partnership to deliver at the scale and pace needed for the opportunities to be realised.

Dr Jean Innes, CEO of the Alan Turing Institute, said:

This plan offers an exciting route map, and we welcome its focus on adoption of safe and responsible AI, AI skills and an ambition to sustain the UK’s global leadership, putting AI to work driving growth, and delivering benefits for society. We share these ambitions and look forward to working with the government, universities, industry and civil society to shape the future of these technologies to support the UK’s success and improve people’s lives

Nicholas Beale, Chair of the Investor Council on Responsible AI, said:

Global Investors will welcome the UK government’s urgency and determination to work in partnership with innovators and investors in the responsible development and deployment of AI.

Sir Edward Braham, Chairman of asset management business M&G PLC, said:

I welcome today’s report and the government’s scale of ambition and commitment to move at pace. The plan will help ensure that the UK is at the forefront of AI innovation and enable access to crucial infrastructure, capital and talent. It will also promote partnerships across the public and private sector and drive safe, trusted and widespread adoption of AI to boost productivity and economic growth.

Dr Tim Bradshaw, Chief Executive of the Russell Group, said:

We are pleased to see today’s AI Opportunities Action Plan includes a focus on building the UK’s compute capacity – including a welcome boost to the UK’s processing power via a new supercomputer – and removing barriers to AI infrastructure planning.

Through multi-disciplinary expertise, a pipeline of academic talent and well-established industry partnerships, research-intensive universities are already harnessing AI technologies for public good and attracting significant external investment.

However, for some time the UK has been lacking a clear strategy on AI, leaving us vulnerable to falling further behind our global competitors. We therefore welcome this new, ambitious plan to maximise the potential benefits of AI that could boost productivity, improve public services and drive economic growth.

Alexander Iosad, Director of Government Innovation at TBI, said:

As the Prime Minister has made clear, AI is no longer an if, or even a when; it is here, and it is urgent. The opportunities for Britain’s economy and our public services are too great for us to ignore. This has to be the government’s priority.

Public sector workers are overwhelmed and overworked, with many choosing to leave rather than try to make a broken system work. The result is a doom loop of growing backlogs, worsening outcomes and rising failure demand. The real impact of this is felt not just by those workers, but by the British public who can’t get doctors’ appointments, the benefits they are entitled to, and the high-quality education they and their children deserve.

AI can help take care of drudgery in the public sector, freeing people up to focus on high-value tasks that require the human touch. TBI research shows that we can generate up to £40 billion a year in productivity gains and savings, all while delivering better, faster and further.

Alongside this, we can be home to new companies that become global household names and lead the way in AI-enabled scientific research. We have the advantages we need. But we can only maintain this lead if we don’t let up, and implementing the recommendations in the Action Plan is key to this.

It is imperative that the government gets this right and gives the Action Plan the focus it deserves. We must be relentless in its delivery, and its delivery must be urgent.

Sikander Rashid, Head of Europe for Brookfield, said:

By facilitating large-scale investment in AI infrastructure—spanning computer processors, data centers, and renewable energy—the UK is laying the foundation for a new era of business productivity and economic growth.

This initiative not only fosters innovation and efficiency across industries, but also helps to position the UK as a leader in the AI economy. With Brookfield’s global leadership in data centers and renewable power, we see significant opportunities for AI infrastructure investment in the UK.

We are excited to contribute to the UK’s ambitious vision as we look to grow our presence in the country from over £60 billion in assets to a much larger number.

Further Information:
- the £47 billion estimate is based on IMF figures but derived from separate calculations and assumptions, and as such, is not an official IMF estimate
- estimates from the International Monetary Fund (IMF) show that while the exact economic impact hinges on the wider development and adoption of AI, and realisation could be gradual, the UK could ultimately see productivity gains of up to 1.5% annually
- if fully realised, these gains could be worth up to an average £47 billion to the UK each year over a decade
- the Vantage Data Centres anticipated investment, some of which is subject to planning permission and agreed connection timelines, is expected to support over 10,000 local construction jobs over the next decade, and create over 1,500 operational roles at its data centres
Read:
- AI Opportunities Action Plan (https://www.gov.uk/government/publications/ai-opportunities-action-plan/)
- Government response to the AI Opportunities Action Plan (https://www.gov.uk/government/publications/ai-opportunities-action-plan-government-response/)
DSIT media enquiries

Email xxx@xxx.xx (mailto:xxx@xxx.xx)

Monday to Friday, 8:30am to 6pm xx-xxxx-xxxx