According to the UK Secretary of State for Science, Innovation and Technology, the UK is the third largest AI market in the world. But Peter Kyle cautions: “the UK risks falling behind the advances in Artificial Intelligence made in the US and China.”
Kyle adds: “In this next phase of AI development, we want Britain to step up; to shape the AI revolution rather than wait to see how it shapes us. Because we believe Britain has a particular responsibility to provide global leadership in fairly and effectively seizing the opportunities of AI, as we have done on AI safety. That is why one of my first acts as Secretary of State was to commission Matt Clifford to devise an AI Opportunities Action Plan for the British government.”
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Industry reaction to the UK AI Action Plan
Gerald Chappell, co-founder and CEO of AI-powered lender Abound
It is hugely important for not only the British fintech scene but for the country’s economic growth prospects to see the UK Government produce an AI Opportunities Action Plan.
As an Open Banking and AI-powered lender, Abound was founded in the UK precisely because of the country’s leadership in developing and regulating Open Banking. If the UK Government can – as the Prime Minister has said – “make sure the right conditions are in place” for AI to become as well pioneered, adopted, regulated and championed as Open Banking has been, then the economic and societal benefits will be transformational.
The plans to unlock public data to help fuel the growth of AI businesses are particularly welcome. Just as in fintech, strong privacy-preserving safeguards can exist alongside greater utilisation of data to train AI models and dramatically streamline previously paper-based processes.
The UK has led the world in Open Banking and in turn fostered cutting edge fintechs delivering real benefits for citizens accessing financial services. Through a similar approach to the frontier of AI, the UK could foster even more high-growth businesses and improve public services.
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By GlobalDataSuman Rao, MD, UK and Ireland, Avaloq
UK government’s announcement is the latest sign wealth managers need to get aboard the AI train
The outlook for artificial intelligence in the UK received another significant boost yesterday’s, with the announcement of the AI Opportunities Action Plan serving as a clear signal of the Government’s commitment to the technology. The plan – which the UK Prime Minister aims will “make Britain the world leader” in AI and comes alongside an investment of £14 billion from private lending tech firms – is just the latest signal that it’s time for UK wealth managers to consider how best to adopt AI.
AI has moved from an exciting yet nascent technology to something that all wealth managers must have a plan for. Today’s news is the latest statement of intent from the UK that it foresees playing a leading role in the development and deployment of AI, and while the Government’s plan is focused on the UK public sector, it is critical that financial services firms take this opportunity to get on board too and help spearhead future innovation.
With our 2024 research revealing that the majority of UK wealth managers (87%) believe AI will be integral to their future work and the UK wealth management industry as a whole, bringing benefits across client onboarding, meeting summaries and regulatory checks, today’s announcement will no doubt be further impetus for them to embrace the technology. For wealth managers that have yet to consider AI, their priority should be understanding the risks and opportunities involved, and how these best fit with their business model. Our research shows that UK investors are most comfortable with using AI in conjunction with humans for a range of investments tasks. They are far less comfortable with delegating full responsibility to AI, indicating a clear continued need for the human touch. With the pace of AI change only accelerating, wealth managers need to determine exactly what split of human versus machine is right for their business in the future.
Chris Williams, Partner, Clyde & Co
We are facing mounting economic uncertainty, and the Government is under pressure to act boldly, as it faces criticism of its handling of the economy and, in particular, its ability to understand business. So it’s little surprise that talk around AI safety has given way to more ambitious pledges to make the UK an ‘AI superpower’. Equally, it’s significant that there is no mention of introducing new AI-specific laws or the establishment of an AI regulator, including safeguarding personal data and intellectual property rights.
The UK must be seen as an attractive place to do business if it hopes to encourage investment from tech firms, and this ideally requires favourable legislation. AI will be crucial for the development of many industries, and the Government itself has the potential to be a consumer of the technology, from healthcare use cases to road infrastructure – so it has the opportunity to dangle the carrot of potentially lucrative contracts to entice tech companies to establish themselves and innovate here.
Ultimately, the ‘pro-innovation’ approach of the previous government seems very much alive.
James Klein, corporate partner, Spencer West LLP
It is of real importance that AI be at the forefront of future growth for businesses and the economy in the UK. The UK needs to rejuvenate, and positively transform, its public services and infrastructure. It is imperative that we generate tangible future long-term growth for early-stage companies, as well as scale ups, at a time when there are many in the UK weighing up their options and looking to potentially take their businesses overseas as they reflect upon the UK as a whole, including the effect of upcoming tax increases brought about by the Budget.
We must retain both our talent and our successful businesses which are often created out of our leading universities allowing them to meaningfully scale and grow to the size of those companies we see in other parts on the World.
The AI Plan seems to be very sensible and includes (amongst other things) a focus on AI sovereignty which will pinpoint where the UK can compete and win in the world of AI; removing barriers to scaling necessary and relevant AI pilots in government, (at the same time validating the notion that AI automation is required in the public sector); and offering a route to regulatory reform and change to procurement to boost UK AI startups as well as AI growth zones with faster planning permission and grid connections.
All in all, the UK’s AI Action Plan seems a very positive step in the right direction. However, as with everything, its implementation and appeal to all parts of the society will ultimately be the key to its success or the reason for its failure.
