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Starmer sets out a new AI action plan to strengthen Britain’s global technological dominance

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Starmer sets out a new AI action plan to strengthen Britain's global technological dominance

Prime Minister Keir Starmer has outlined a far-reaching vision for Britain to become the world leader in artificial intelligence, promising a quintessentially British approach to regulation while unleashing AI’s potential to revive the country’s sluggish economy to blow.

Unveiling the government’s “AI Opportunities Action Plan”, Starmer pledged to break with both US and European regulations. His goal is to create an environment that encourages innovation and investment, including creating dedicated AI growth zones to accelerate approvals for data centers and other key infrastructure.

The 50 policy recommendations include measures to increase the UK’s supercomputing capacity twentyfold by 2030, and to make public services more efficient through AI-driven automation. The government hopes a focus on education and talent development will help transform everything from local councils identifying potholes to schools cutting red tape, freeing people up to deliver more ‘people-centred’ services.

The Labor administration also announced that three tech companies have committed £14 billion in AI-related investment, promising to create more than 13,000 new jobs. Yet criticism remains. The Conservative opposition has questioned Labour’s record on funding after a previous supercomputing project was scrapped, while Shadow Science Minister Alan Mak accused the government of failing to provide sufficient resources to effectively deliver Britain’s AI leadership ambitions to achieve.

In a nod to the risks of the technology, the plan includes a commitment to complete a study on AI’s impact on intellectual property rights. Concerns remain over AI-driven disinformation, deepfake content and potential job losses, although Senior Minister Pat McFadden stressed the importance of seeing the technology’s potential in a positive light.

AI business leaders and HR professionals alike welcomed the action plan. Gordon Baggott of 4most called it a “pivotal moment” for economic growth, while Hayfa Mohdzaini, senior policy and practice adviser for technology at the CIPD, the professional body for HR and people development, said: “We welcome the plans of the government to boost the economy. the use of AI in UK public services, which could deliver significant productivity gains for the UK economy. By letting AI handle repetitive and administrative tasks, employees can deliver more human public services. When used well, AI can improve jobs and make them more satisfying for people.

“However, it will be important for employers to monitor how the technology is used and manage the risks. A CIPD survey of more than 1,500 people in January 2025 found that six in ten respondents would trust AI to inform, but not make, important decisions at work. This underlines the importance of human supervision when introducing this technology.


Paul Jones

Harvard alumni and former New York Times journalist. Editor of Business Matters, Britain’s leading business magazine, for over 15 years. I am also head of the automotive division of Capital Business Media and I work for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.

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