• The UK government plans to adopt all 50 recommendations from the "AI Opportunities Action Plan," including accelerated planning permissions for data centres.
  • AI adoption could increase UK productivity by 1.5% annually, generating £47 billion ($57 billion) per year over the next decade.

British Prime Minister Keir Starmer is set to unveil an ambitious plan to position the UK as a global leader in artificial intelligence (AI). Speaking in London on Monday, Starmer will emphasize AI’s transformative potential for the economy, pledging to create special zones for data centres and promoting technology-focused education.

Starmer’s vision places AI at the core of his economic growth strategy. The government estimates that full adoption of AI could boost productivity by 1.5% annually, equating to an additional £47 billion ($57 billion) each year over the next decade.

The Labour government has committed to implementing all 50 recommendations from the "AI Opportunities Action Plan," a report by venture capitalist Matt Clifford. Key measures include expediting planning permissions and energy connections for data centres, with the first centre planned for Culham, Oxfordshire, home to Britain’s Atomic Energy Authority.

"Our plan will make Britain the world leader," Starmer said in a statement issued by the Department for Science, Innovation and Technology. "That means more jobs and investment in the UK, more money in people's pockets."

Currently, Britain ranks as the third-largest AI market globally, following the U.S. and China, based on metrics like investment and patents, according to Stanford University. However, concerns persist regarding the Labour government’s recent high tax budget, which has dented business confidence, coupled with the Bank of England's report that the economy stagnated in the last quarter.

Starmer will highlight AI’s ability to streamline planning consultations, reduce administrative burdens for teachers, and support small businesses.

"And in a world of fierce competition, we cannot stand by," Starmer will assert. "We must move fast and take action."

Edited by Harshajit Sarmah