Chancellor Jeremy Hunt is preparing to provide a budget boost to Britain’s growing artificial intelligence sector through a doubling of funding, for the Alan Turing Institute, the UK’s national body for data science and artificial intelligence.
Despite being restricted in his scope for pre-election giveaways by the weakness of the public finances, the chancellor is expected to announce a five-year package of funding worth £100m.
The Treasury said the money would allow the Turing Institute – set up in 2015 and named after the pioneering computer scientist and mathematician who died in 1954 – to make fresh advances in data science and AI.
The extra funding will be allocated to research in three areas where AI is seen as having an important role to play: transforming healthcare, protecting the environment, and strengthening defence and national security. Treasury sources said the money would have a direct impact on the public through better healthcare and tackling biodiversity challenges.
Since becoming chancellor in October 2022, Hunt has repeatedly stated his desire to turn Britain into a science superpower and for the country to become the next Silicon Valley. He has announced plans to harness the power of Britain’s pension funds to emulate America’s success in turning inventions into commercial propositions.
Hunt believes AI offers a way of improving Britain’s poor productivity record. Recent research has suggested the adoption of generative AI could add up to $4.4tn (£3.5tn) to the global economy each year.
Sources said the chancellor wanted to use the technological revolution to unlock economic growth and enable researchers to make new discoveries in a range of areas including medicine, aerospace and climate change – and benefit every corner of the UK. Building on past projects and using the UK’s unique health data sources, Hunt thinks the new funding will allow the Turing Institute to make an important contribution to the UK’s health and wellbeing.
A Treasury source said: “With the UK home to a third of Europe’s AI companies, investing in this pivotal technology is a vital opportunity to grow the economy and deliver a brighter future for Britain.
“By backing the Turing Institute, we’re taking a further step in our plan to ensure that we are at the forefront of shaping how technology transforms our lives for the better.”
Stuart Munton, Chief for Group Delivery at AND Digital said: “With businesses scrambling to implement AI effectively and responsibly, this extra funding will provide a major boost for Britain’s digital capabilities. The seismic changes this technology is bringing to the workplace are still being explored, but in the long term will lead to rapid increases in productivity, which in turn will require a new generation of highly trained specialist staff to unlock its full potential. “The UK placed 4th in the World AI rating last August, however we need the UK’s AI investments from government and businesses to accelerate if the gap between us and the leaders is not to widen.”
Michael Thornton, senior director, public sector at Investigo, part of The IN Group, said: “AI is set to shake up traditional working models beyond all recognition, leading to a surge in demand for a digitally adept workforce that is fluent in all aspects of the technology. The problem is that even before the advent of widespread AI adoption, there was a gaping skills crisis engulfing UK PLC and public sector organisations.
With this in mind, it’s encouraging to see substantial sums being invested to help drive research and training in such a crucial area of the economy, but much more needs to be done to ensure the next generation gets access to the skills they need to fully capitalise on its benefits and long term opportunities.”
Simon Ward CEO and founder of Inspired Thinking Group (ITG) said: “This funding is a major boost for the UK’s rapidly growing technology industry and will play a crucial role in tackling digital skills shortfall which has long hampered the potential of UK PLC. With generative AI, automation and chatbots reshaping traditional working models, getting access to staff with the latest skills and spreading this knowledge across the workforce is vital for organisations seeking to maintain a competitive edge. Economies that embrace and optimise the latest digital capabilities will thrive in the long term, those that fail to do so will inevitably fall behind.”
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