Artificial intelligence (AI) is set to be the defining digital innovation of the 21st century.
From manufacturing to agriculture, energy to public services, AI is transforming our lives and livelihoods; and there’s a race to see which country emerges as the global leader.
There’s no doubt China and the USA are the two main players, but the UK is regularly ranked in the top three nations for AI, thanks its research, education, funding and policy.
So, what does the UK have in its favour, and what is holding it back?
AI critical mass
In terms of quantity, the UK is Europe’s AI capital.
There are over 5,800 AI companies operating nationwide and Britain has more AI companies than any other European country.
London alone is home to influential firms like DeepMind and a growing number of startups pushing boundaries in AI.
Unrivalled research excellence
One of the UK’s greatest assets is its universities and research power.
The Universities of Oxford and Cambridge, Imperial College London and University College London (UCL) all rank in the top 25 QS World Rankings for data science and AI, creating a pipeline of talented graduates and researchers and a global hub for innovation.
Strong government investment
Investment in AI in the UK has surged in recent years and the UK ranks in the top four nations for government commitment to AI training, research and infrastructure.
The UK government is actively positioning the country as a leader and has recently announced a £2.5 billion funding boost for AI and quantum technologies.
Capacity limitations
Despite its strengths, there are limitations holding the UK back and the most significant is capacity.
China and the USA have computing and industrial capacity the UK simply can’t match. Limited manufacturing capabilities – particularly of high-specification microchips – and a lack of data centre capacity will hold the UK back in the race against these two AI superpowers.
Job losses and business readiness
Research shows the UK is losing more jobs than it creates through AI adoption and is losing more jobs than other leading economies.
It’s also losing out on the innovation opportunities, with businesses across the UK slow to embrace AI responsibly and at pace, despite the efforts of successive governments to empower British businesses.
There’s still a medal for bronze
The AI race is driven by scale where the UK can’t compete with China and the USA, but the nation still punches well above its weight.
The UK has built one of the most dynamic AI ecosystems in the world and continues to influence how AI is developed and governed globally. It may not be in gold or silver medal winning position, but the UK is still a global leader in AI.
