• Dr. Kjell Carlsson, Head of AI strategy at Domino Data Lab


• 16.01.2025 04:45 pm
#UKAIActionPlan #DominoDataLab

Given how many governments are issuing a plan for fostering a domestic AI industry, it is easy to dismiss the UK’s AI Opportunities Action Plan. That would be a mistake because the UK has both a headstart and many competitive advantages in AI – most notably its AI talent, academic institutions and vibrant community of AI startups. It makes complete sense that the UK government should build on these essential advantages and accelerate the growth and development of its AI industry. This is in stark contrast to the majority of countries who possess almost no domestic AI cluster where investments in AI will almost certainly be wasted.

However, the particular policies matter. Many of the most visible recommendations in the action plan are unlikely to yield significant benefits, while more hidden ones deserve far more attention and investment. The most valuable parts of the plan focus on the most valuable resource in the AI era: human talent. Attracting top global AI talent and making it easy for individuals to study, research, and launch AI ventures in the UK should be front and center of the plan—not buried as a secondary priority. Immigration policy reform, with a focus on streamlining pathways for AI professionals, would be the single most effective measure the government can do for maintaining and expanding Britain’s edge in AI.

When it comes to infrastructure – the most visible part of the plan – Britain cannot and should not try to compete in the global arms race for AI infrastructure. The economics heavily favor the U.S., China, and even other European nations with cheaper factors such as electricity, land and labor. Instead, the UK can capitalise on today’s hybrid cloud environment, which allows researchers and enterprises to access secure, cost-effective compute resources globally. Resources earmarked for infrastructure development would deliver greater value if redirected toward funding cutting-edge research, incubating AI startups, and crafting a regulatory framework that prioritises addressing real harms over hypothetical risks.

The UK’s measured approach to AI regulation is also a competitive advantage. By focusing on innovation and safety without the uncertainty and potentially lethal penalties of the EU AI Act, Britain can position itself as a haven for European AI startups and enterprises looking for a regulatory environment that both promotes innovation and safety. If the UK doubles down on attracting talent and crafting an effective, responsive regulatory system, it has the potential to be a leader in driving sustainable economic growth with AI.