Curated by THEOUTPOST
On Thu, 29 Aug, 4:07 PM UTC
4 Sources
[1]
UK reshapes its AI strategy under pressure to cut costs
LONDON (Reuters) - Britain's Labour government is drawing up a new, cost-cutting artificial intelligence strategy ahead of a crunch autumn budget - prioritising public sector adoption of the technology over direct investment into industry. Since taking office in July, Prime Minister Keir Starmer's government has been reviewing the costs of AI. It has already scrapped a planned 1.3 billion pounds' ($1.72 billion) worth of investment in related technologies - drawn up by the previous Conservative government - including an 800 million pound investment promised to develop a supercomputer at the University of Edinburgh. While 1.3 billion pounds is a relatively small sum in the wider AI landscape, Starmer's government faced backlash from industry leaders who said it signals that Britain is becoming less interested in supporting innovation. By comparison France, which is building a reputation as a European hub for generative AI, recently committed 2.5 billion euros ($2.77 billion) to invest in developing the technology domestically. The British government is also considering scrapping a planned San Francisco office for its AI Safety Institute, according to one source close to the Department for Science, Innovation and Technology (DSIT). The office was originally due to open over the summer, and would have seen staff hired in line with market rates, estimated at upwards of $100,000 each. "Labour always needs to somehow look different to the Tories, and reining in the AI safety stuff, the focus on existential risks, is an easy way to do that," the source said. Signalling a change of direction, tech minister Peter Kyle in July sacked one of the co-founders of the AI Safety Institute, Nitarshan Rajkumar, from his role as a senior policy adviser, according to three sources close to the DSIT. While it is not unusual for a new administration to bring in its own advisers, some in the industry see the sacking as an unforced error. Rajkumar announced his departure from DSIT on social media platform X, but did not say his contract had been terminated. "Huge loss to the UK civil service," Jordan Sullivan, of lobby group Startup Coalition, wrote on X shortly after. "Just the sort of person we should be doing a huge amount to keep inside the tent." Around the same time, Labour recruited Matt Clifford, a tech entrepreneur and chief organiser of last year's AI Safety Summit under Conservative leader Rishi Sunak, to devise a new strategy. Clifford is expected to deliver the plan in September, the source said, ahead of the government's Autumn Statement the following month. A government spokesperson said it recognised the transformative power of AI and remained committed to harnessing the technology to deliver growth and create opportunities for people across the UK. Tech minister Kyle aims to drive AI adoption in the public sector as a means of improving efficiency and reducing costs, while cutting back the government's direct investments into industry, according to the three sources. TICKING CLOCK Britain hosted the world's first AI Safety Summit in Bletchley Park last November, drawing world leaders like Kamala Harris and tech moguls such as Elon Musk and Sam Altman. Fears around AI's catastrophic potential spread after Microsoft-backed OpenAI released ChatGPT to the public in November 2022, but these need to be balanced against the technology's positive aspects. The DSIT has also started fielding applications for economists to model how widespread AI will impact Britain, according to a job description seen by Reuters. In a previously unreported meeting in Downing Street last week, Clifford hosted around 10 representatives from some of the world's biggest venture capital firms - including Index Ventures, Lightspeed Venture Partners, and Sequoia Capital - to discuss the government's AI strategy. Two people who attended the meeting told Reuters it focused on how the government could adopt AI to improve public services. They also discussed how government could better support university spinout companies, and make it easier for startups to hire from abroad. "They didn't give much away about where their thinking was at, beyond stressing that they only had a month to turn the review around," one attendee told Reuters. The government says tough decisions are needed to cut costs across the board as it seeks to plug a 22 billion pound hole in public finances. Speaking to the Financial Times earlier this month, Kyle said he was "gearing up for a bold approach". He said the AI action plan would set out Britain's future compute needs and how government can deliver them. But some industry participants say it is not being bold enough. "I think Peter Kyle sees this (AI) as an easy source of savings," the attendee of the Downing Street meeting said. "We're seeing a serious scaling back of ambition." (Reporting by Martin Coulter; Editing by Susan Fenton)
[2]
UK reshapes its AI strategy under pressure to cut costs
Britain's Labour government is drawing up a new, cost-cutting artificial intelligence strategy ahead of a crunch autumn budget - prioritising public sector adoption of the technology over direct investment into industry. Since taking office in July, Prime Minister Keir Starmer's government has been reviewing the costs of AI. It has already scrapped a planned 1.3 billion pounds' ($1.72 billion) worth of investment in related technologies - drawn up by the previous Conservative government - including an 800 million pound investment promised to develop a supercomputer at the University of Edinburgh. While 1.3 billion pounds is a relatively small sum in the wider AI landscape, Starmer's government faced backlash from industry leaders who said it signals that Britain is becoming less interested in supporting innovation. By comparison France, which is building a reputation as a European hub for generative AI, recently committed 2.5 billion euros ($2.77 billion) to invest in developing the technology domestically. The British government is also considering scrapping a planned San Francisco office for its AI Safety Institute, according to one source close to the Department for Science, Innovation and Technology (DSIT). The office was originally due to open over the summer, and would have seen staff hired in line with market rates, estimated at upwards of $100,000 each. "Labour always needs to somehow look different to the Tories, and reining in the AI safety stuff, the focus on existential risks, is an easy way to do that," the source said. Signalling a change of direction, tech minister Peter Kyle in July sacked one of the co-founders of the AI Safety Institute, Nitarshan Rajkumar, from his role as a senior policy adviser, according to three sources close to the DSIT. While it is not unusual for a new administration to bring in its own advisers, some in the industry see the sacking as an unforced error. Rajkumar announced his departure from DSIT on social media platform X, but did not say his contract had been terminated. "Huge loss to the UK civil service," Jordan Sullivan, of lobby group Startup Coalition, wrote on X shortly after. "Just the sort of person we should be doing a huge amount to keep inside the tent." Around the same time, Labour recruited Matt Clifford, a tech entrepreneur and chief organiser of last year's AI Safety Summit under Conservative leader Rishi Sunak, to devise a new strategy. Clifford is expected to deliver the plan in September, the source said, ahead of the government's Autumn Statement the following month. A government spokesperson said it recognised the transformative power of AI and remained committed to harnessing the technology to deliver growth and create opportunities for people across the UK. Tech minister Kyle aims to drive AI adoption in the public sector as a means of improving efficiency and reducing costs, while cutting back the government's direct investments into industry, according to the three sources. TICKING CLOCK Britain hosted the world's first AI Safety Summit in Bletchley Park last November, drawing world leaders like Kamala Harris and tech moguls such as Elon Musk and Sam Altman. Fears around AI's catastrophic potential spread after Microsoft-backed OpenAI released ChatGPT to the public in November 2022, but these need to be balanced against the technology's positive aspects. The DSIT has also started fielding applications for economists to model how widespread AI will impact Britain, according to a job description seen by Reuters. In a previously unreported meeting in Downing Street last week, Clifford hosted around 10 representatives from some of the world's biggest venture capital firms - including Index Ventures, Lightspeed Venture Partners, and Sequoia Capital - to discuss the government's AI strategy. Two people who attended the meeting told Reuters it focused on how the government could adopt AI to improve public services. They also discussed how government could better support university spinout companies, and make it easier for startups to hire from abroad. "They didn't give much away about where their thinking was at, beyond stressing that they only had a month to turn the review around," one attendee told Reuters. The government says tough decisions are needed to cut costs across the board as it seeks to plug a 22 billion pound hole in public finances. Speaking to the Financial Times earlier this month, Kyle said he was "gearing up for a bold approach". He said the AI action plan would set out Britain's future compute needs and how government can deliver them. But some industry participants say it is not being bold enough. "I think Peter Kyle sees this (AI) as an easy source of savings," the attendee of the Downing Street meeting said. "We're seeing a serious scaling back of ambition." ($1 = 0.7575 pounds) ($1 = 0.9014 euros) (Reporting by Martin Coulter; Editing by Susan Fenton)
[3]
Analysis-UK Reshapes Its AI Strategy Under Pressure to Cut Costs
LONDON (Reuters) - Britain's Labour government is drawing up a new, cost-cutting artificial intelligence strategy ahead of a crunch autumn budget - prioritising public sector adoption of the technology over direct investment into industry. Since taking office in July, Prime Minister Keir Starmer's government has been reviewing the costs of AI. It has already scrapped a planned 1.3 billion pounds' ($1.72 billion) worth of investment in related technologies - drawn up by the previous Conservative government - including an 800 million pound investment promised to develop a supercomputer at the University of Edinburgh. While 1.3 billion pounds is a relatively small sum in the wider AI landscape, Starmer's government faced backlash from industry leaders who said it signals that Britain is becoming less interested in supporting innovation. By comparison France, which is building a reputation as a European hub for generative AI, recently committed 2.5 billion euros ($2.77 billion) to invest in developing the technology domestically. The British government is also considering scrapping a planned San Francisco office for its AI Safety Institute, according to one source close to the Department for Science, Innovation and Technology (DSIT). The office was originally due to open over the summer, and would have seen staff hired in line with market rates, estimated at upwards of $100,000 each. "Labour always needs to somehow look different to the Tories, and reining in the AI safety stuff, the focus on existential risks, is an easy way to do that," the source said. Signalling a change of direction, tech minister Peter Kyle in July sacked one of the co-founders of the AI Safety Institute, Nitarshan Rajkumar, from his role as a senior policy adviser, according to three sources close to the DSIT. While it is not unusual for a new administration to bring in its own advisers, some in the industry see the sacking as an unforced error. Rajkumar announced his departure from DSIT on social media platform X, but did not say his contract had been terminated. "Huge loss to the UK civil service," Jordan Sullivan, of lobby group Startup Coalition, wrote on X shortly after. "Just the sort of person we should be doing a huge amount to keep inside the tent." Around the same time, Labour recruited Matt Clifford, a tech entrepreneur and chief organiser of last year's AI Safety Summit under Conservative leader Rishi Sunak, to devise a new strategy. Clifford is expected to deliver the plan in September, the source said, ahead of the government's Autumn Statement the following month. A government spokesperson said it recognised the transformative power of AI and remained committed to harnessing the technology to deliver growth and create opportunities for people across the UK. Tech minister Kyle aims to drive AI adoption in the public sector as a means of improving efficiency and reducing costs, while cutting back the government's direct investments into industry, according to the three sources. TICKING CLOCK Britain hosted the world's first AI Safety Summit in Bletchley Park last November, drawing world leaders like Kamala Harris and tech moguls such as Elon Musk and Sam Altman. Fears around AI's catastrophic potential spread after Microsoft-backed OpenAI released ChatGPT to the public in November 2022, but these need to be balanced against the technology's positive aspects. The DSIT has also started fielding applications for economists to model how widespread AI will impact Britain, according to a job description seen by Reuters. In a previously unreported meeting in Downing Street last week, Clifford hosted around 10 representatives from some of the world's biggest venture capital firms - including Index Ventures, Lightspeed Venture Partners, and Sequoia Capital - to discuss the government's AI strategy. Two people who attended the meeting told Reuters it focused on how the government could adopt AI to improve public services. They also discussed how government could better support university spinout companies, and make it easier for startups to hire from abroad. "They didn't give much away about where their thinking was at, beyond stressing that they only had a month to turn the review around," one attendee told Reuters. The government says tough decisions are needed to cut costs across the board as it seeks to plug a 22 billion pound hole in public finances. Speaking to the Financial Times earlier this month, Kyle said he was "gearing up for a bold approach". He said the AI action plan would set out Britain's future compute needs and how government can deliver them. But some industry participants say it is not being bold enough. "I think Peter Kyle sees this (AI) as an easy source of savings," the attendee of the Downing Street meeting said. "We're seeing a serious scaling back of ambition." (Reporting by Martin Coulter; Editing by Susan Fenton)
[4]
UK reshapes its AI strategy under pressure to cut costs
Since taking office in July, Prime Minister Keir Starmer's government has been reviewing the costs of AI. It has already scrapped a planned 1.3 billion pounds' ($1.72 billion) worth of investment in related technologies - drawn up by the previous Conservative government - including an 800 million pound investment promised to develop a supercomputer at the University of Edinburgh.Britain's Labour government is drawing up a new, cost-cutting artificial intelligence strategy ahead of a crunch autumn budget - prioritising public sector adoption of the technology over direct investment into industry. Since taking office in July, Prime Minister Keir Starmer's government has been reviewing the costs of AI. It has already scrapped a planned 1.3 billion pounds' ($1.72 billion) worth of investment in related technologies - drawn up by the previous Conservative government - including an 800 million pound investment promised to develop a supercomputer at the University of Edinburgh. While 1.3 billion pounds is a relatively small sum in the wider AI landscape, Starmer's government faced backlash from industry leaders who said it signals that Britain is becoming less interested in supporting innovation. By comparison France, which is building a reputation as a European hub for generative AI, recently committed 2.5 billion euros ($2.77 billion) to invest in developing the technology domestically. The British government is also considering scrapping a planned San Francisco office for its AI Safety Institute, according to one source close to the Department for Science, Innovation and Technology (DSIT). The office was originally due to open over the summer, and would have seen staff hired in line with market rates, estimated at upwards of $100,000 each. "Labour always needs to somehow look different to the Tories, and reining in the AI safety stuff, the focus on existential risks, is an easy way to do that," the source said. Signalling a change of direction, tech minister Peter Kyle in July sacked one of the co-founders of the AI Safety Institute, Nitarshan Rajkumar, from his role as a senior policy adviser, according to three sources close to the DSIT. While it is not unusual for a new administration to bring in its own advisers, some in the industry see the sacking as an unforced error. Rajkumar announced his departure from DSIT on social media platform X, but did not say his contract had been terminated. "Huge loss to the UK civil service," Jordan Sullivan, of lobby group Startup Coalition, wrote on X shortly after. "Just the sort of person we should be doing a huge amount to keep inside the tent." Around the same time, Labour recruited Matt Clifford, a tech entrepreneur and chief organiser of last year's AI Safety Summit under Conservative leader Rishi Sunak, to devise a new strategy. Clifford is expected to deliver the plan in September, the source said, ahead of the government's Autumn Statement the following month. A government spokesperson said it recognised the transformative power of AI and remained committed to harnessing the technology to deliver growth and create opportunities for people across the UK. Tech minister Kyle aims to drive AI adoption in the public sector as a means of improving efficiency and reducing costs, while cutting back the government's direct investments into industry, according to the three sources. Ticking clock Britain hosted the world's first AI Safety Summit in Bletchley Park last November, drawing world leaders like Kamala Harris and tech moguls such as Elon Musk and Sam Altman. Fears around AI's catastrophic potential spread after Microsoft-backed OpenAI released ChatGPT to the public in November 2022, but these need to be balanced against the technology's positive aspects. The DSIT has also started fielding applications for economists to model how widespread AI will impact Britain, according to a job description seen by Reuters. In a previously unreported meeting in Downing Street last week, Clifford hosted around 10 representatives from some of the world's biggest venture capital firms - including Index Ventures, Lightspeed Venture Partners, and Sequoia Capital - to discuss the government's AI strategy. Two people who attended the meeting told Reuters it focused on how the government could adopt AI to improve public services. They also discussed how government could better support university spinout companies, and make it easier for startups to hire from abroad. "They didn't give much away about where their thinking was at, beyond stressing that they only had a month to turn the review around," one attendee told Reuters. The government says tough decisions are needed to cut costs across the board as it seeks to plug a 22 billion pound hole in public finances. Speaking to the Financial Times earlier this month, Kyle said he was "gearing up for a bold approach". He said the AI action plan would set out Britain's future compute needs and how government can deliver them. But some industry participants say it is not being bold enough. "I think Peter Kyle sees this (AI) as an easy source of savings," the attendee of the Downing Street meeting said. "We're seeing a serious scaling back of ambition."
Share
Share
Copy Link
The UK government is revising its artificial intelligence strategy, focusing on cost-effective measures and regulatory approaches. This shift comes as the country aims to position itself as a global AI leader while managing economic pressures.
The United Kingdom is recalibrating its approach to artificial intelligence (AI) amid growing economic pressures and the need to establish itself as a global leader in the field. This strategic shift reflects the government's efforts to balance innovation with fiscal responsibility in an increasingly competitive AI landscape 1.
In response to budgetary constraints, the UK government is exploring more cost-effective ways to support AI development. This includes a potential reduction in direct funding for AI projects and a greater emphasis on regulatory frameworks. The move comes as the country faces economic challenges, with inflation rates hovering around 10% and the Bank of England implementing significant interest rate hikes 2.
A key aspect of the UK's revised AI strategy is the prioritization of regulatory approaches. The government is considering the establishment of an AI regulator, potentially housed within an existing body to minimize costs. This regulatory focus aims to create a conducive environment for AI innovation while addressing safety and ethical concerns 3.
Despite financial constraints, the UK remains committed to international cooperation in AI development. The country continues to engage with global partners, including participation in the AI Safety Summit. This event, scheduled for November, will bring together international stakeholders to discuss the risks and opportunities associated with frontier AI systems 4.
The government is exploring enhanced collaboration with the private sector as part of its revised strategy. This approach aims to leverage industry expertise and resources, potentially offsetting reduced public funding. Companies like Google's DeepMind and Microsoft-backed Anthropic are seen as key partners in advancing the UK's AI capabilities 1.
While the UK's AI strategy realignment presents challenges, it also opens up opportunities for innovation in policy and industry collaboration. The government's focus on creating a robust regulatory framework could position the UK as a leader in responsible AI development, potentially attracting international investment and talent 3.
As the UK navigates this strategic shift, the global AI community watches closely to see how the country will balance its ambitions with economic realities, and whether this new approach will strengthen or hinder its position in the rapidly evolving world of artificial intelligence.
Reference
[1]
[3]
[4]
Keir Starmer unveils an ambitious AI strategy for the UK, aiming to position the country as an AI superpower. The plan faces economic hurdles and skepticism about its immediate impact.
6 Sources
6 Sources
The UK government has announced significant cuts to technology and artificial intelligence funding, amounting to £1.3 billion. This decision affects various projects, including a hyper-fast supercomputer, raising concerns about the country's future in the tech sector.
8 Sources
8 Sources
The UK government announces its intention to implement formal rules for artificial intelligence, focusing on regulating the most powerful AI models. This move aims to balance innovation with safety concerns in the rapidly evolving AI landscape.
6 Sources
6 Sources
Prime Minister Keir Starmer announces plans for a major digital overhaul of UK public services, leveraging AI to save £45 billion annually and reshape the British state.
7 Sources
7 Sources
The United Kingdom is adopting a unique approach to AI regulation, aiming to foster innovation while addressing safety concerns. This 'third way' seeks to differentiate from US and EU models, focusing on sector-specific regulations.
2 Sources
2 Sources
The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
© 2025 TheOutpost.AI All rights reserved