PRIME MINISTER Keir Starmer has announced plans to position the country as an artificial intelligence (AI) "superpower," focusing on pro-innovation regulation, access to public data for researchers, and the establishment of data centre zones.
Speaking at University College London on Monday, Starmer said AI would be central to his economic growth strategy.
Despite fiscal challenges caused by rising borrowing costs, the Labour government aims to harness AI to drive productivity and wealth creation.
"Britain will be one of the great AI superpowers," Starmer said, highlighting the UK’s status as Europe’s leading AI investment hub. "We're going to make the breakthroughs, we're going to create the wealth, and we're going to make AI work for everyone in our country."
The government estimates that AI could boost annual productivity by 1.5 per cent over a decade, contributing an additional £47 billion annually to the economy.
Countries worldwide are racing to establish themselves as AI hubs, balancing the technology's growth potential with regulatory safeguards.
According to Stanford University, Britain ranks behind only the United States and China in measures such as AI investment and patents.
Starmer emphasised a "pro-growth and pro-innovation" regulatory approach, stating: "We will test and understand AI before we regulate it to make sure that when we do it, it's proportionate and grounded."
He announced the creation of a "National Data Library" to provide researchers access to public data under trusted copyright rules.
The government will also implement all 50 recommendations from the "AI Opportunities Action Plan" report by venture capitalist Matt Clifford.
This includes accelerating planning permissions and energy connections for data centres, with the first centre planned for Culham, Oxfordshire, home to Britain’s Atomic Energy Authority.
Starmer outlined AI’s potential to improve various sectors, including speeding up planning consultations, supporting small businesses, and reducing administrative tasks for healthcare and education professionals.
Britain’s economy has struggled to gain momentum following Labour's highest tax-raising budget since 1993, which dampened business confidence. The Bank of England recently reported no growth in the last quarter.
(With inputs from Reuters)
Bags of rubbish and bins overflow on the pavement in the Sparkbrook area on June 02, 2025 in Birmingham, England. (Photo by Christopher Furlong/Getty Images)
