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Charlotte Stonestreet
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UK government sets out AI plan
13 January 2025
THE UK government has unveiled its AI Opportunities Action Plan, a comprehensive strategy to support the growth of artificial intelligence and its integration into various sectors of the economy. The plan, developed in consultation with industry leaders, adopts all 50 recommendations outlined by Matt Clifford in his recent report.

AI technologies are already playing a role in improving services across the UK. In healthcare, for instance, AI is helping hospitals diagnose conditions such as breast cancer more quickly, assess pain levels for non-verbal patients, and streamline patient discharge processes. These applications align with the government’s aim to modernise the NHS and deliver better outcomes for patients.
The Prime Minister emphasised AI’s potential to benefit working people, including improving the efficiency of public services. Examples include using AI to simplify planning consultations, reduce administrative burdens for teachers, and identify road maintenance needs such as potholes. The plan also aims to boost productivity, with IMF estimates suggesting that fully embracing AI could raise UK productivity by up to 1.5 percentage points annually, potentially adding an average of £47 billion to the economy each year over the next decade.
Key measures in the AI Opportunities Action Plan include:
- Establishing dedicated AI Growth Zones to accelerate planning permissions and infrastructure development, starting with Culham, Oxfordshire
- Increasing public compute capacity twentyfold to support AI applications, beginning with the construction of a new supercomputer
- Creating a National Data Library to enable secure access to public data for AI development
- Forming an AI Energy Council to address energy requirements for AI advancements and support clean energy initiatives
- Launching a new team to enhance the UK’s sovereign AI capabilities.
The plan also outlines measures to attract global investment. Recent commitments from companies such as Vantage Data Centres, Nscale, and Kyndryl total £14 billion and are expected to create over 13,000 jobs nationwide. These investments include new data centres, a tech hub in Liverpool, and a sovereign AI data centre in Essex.
The UK seeks to position itself as a global leader in AI, building on its status as the world’s third-largest AI market. The strategy draws lessons from approaches in the US and EU to balance innovation with long-term stability, ensuring that businesses have the necessary support to thrive.
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