AI investment pours in to UK but privacy fears increase

The UK’s AI sector has attracted an average of £200m a day in private sector investment since the Government took office last summer – an average of more than £8.3m every hour – as ministers ratchet up their crusade to put Britain at the forefront of the industry and be a change-maker rather than a change-taker.

The new figures, which follow Prime Minister Sir Keir Starmer’s announcement of the “AI Opportunities Action Plan” earlier this week, include more than £14bn in investment into the UK – as well as plans for thousands of new jobs – in just 48 hours since details of initiative were published.

It follows £25n worth of new investment into the UK’s data centre infrastructure announced at the Global Investment Summit earlier this year, bringing the total to £39bn in the last six months alone.

A wave of global companies has put its weight behind the UK’s new vision for the technology, including American AI cloud-computing company CoreWeave, which has set to work using cutting edge NVIDIA technology to ramp up the UK’s compute capacity – a key pillar of the government’s new vision for AI.

It is claimed this has opened up a new world of processing power to Britain’s innovators, and follows the company’s decision to base its European Headquarters in London and invest £1.75bn into the UK in 2024.

Ministers insist that putting the right building blocks in place to help British companies scale up and become AI leaders is also central to the new blueprint. Synthesia – a London based company which is the market leader in software for AI-generated video content – has completed a successful funding round which has seen its value swell to $2.1bn. This investment will support Synthesia’s growth and expansion ambitions, as it aims to become one of Britain’s most valuable AI companies.

Secretary of State for Science, Technology, and Innovation, Peter Kyle said: “This week we begin a new chapter – putting AI in the driving seat to power the government’s Plan for Change and deliver better lives for everyone in the country.

“The steps we’re taking forward from the AI Opportunities Action Plan represent a step change in how the UK manages this technology – unlocking a fresh start for our economy and for working people.

“By attracting more than £14bn in new investment and thousands of fresh jobs since unveiling our new blueprint from companies across the globe, the message is clear – the UK’s pull as a magnet for AI innovation and growth will only go from strength to strength.”

As part of the plans, the Government will create a national data library, comprising state-controlled data, that will be made available to researchers and companies.

At least five “high-impact” datasets will be made available, although the plan notes that privacy, ethics and data protection considerations will have to be taken into account. The prime minister signalled on Monday that the vast trove of health data controlled by the NHS would be a candidate for this library, although data security will be paramount.

While most marketing and advertising industry trade bodies have not responded to the AI Opportunities Action Plan, Advertising Association policy and regulation director Konrad Shek said: “The Government’s plan represents a significant step forward in positioning the UK as a global leader in artificial intelligence. AI is revolutionising every aspect of advertising – from strategy and creative ideation to production, media buying, and regulatory compliance. The advertising industry stands to benefit substantially from these ambitious proposals, particularly around data access, skills development, and infrastructure.

“Through our AI Taskforce, established in 2023, we have been working to ensure the UK remains the world’s leading hub for AI-powered advertising and marketing. The plan’s emphasis on cross-sector AI adoption and commitment to addressing private sector barriers directly supports this mission. The proposed AI Knowledge Hub and support for SME adoption are particularly welcome, as they will help companies of all sizes to embrace these transformative technologies.

“What’s critical now is swift implementation, particularly around data regulations and talent development. We look forward to working with the Government to ensure these changes support both innovation and creativity while protecting intellectual property rights.”

The move has also prompted the Information Commissioner’s Office to highlight data protection concerns.

ICO executive director for regulatory risk Stephen Almond said: “AI has huge potential to transform businesses and public services, which is why it is a priority area for the ICO. Data protection is essential to realising this opportunity and ensuring that the public can have innovate and grow responsibly while upholding people’s rights and freedoms.

“To provide businesses with the certainty they need to innovate safely, we have already published detailed guidance on emerging AI issues, as well as providing practical support through initiatives such as our Regulatory Sandbox and collaboration with fellow regulators in the Digital Regulation Cooperation Forum on the AI and Digital Hub.

“We welcome the AI Action Plan and the Government’s commitment to accelerate the use of AI across the economy. We look forward to working closely with the Government to implement the plan as a priority and ensure that these proposals maximise AI’s significant opportunities while protecting the public.”