One month into the UK's new Labour government taking office, the shelving of key AI projects has signalled a major shift in the country's tech policies. Recent reports indicate that the new government plans to scrap two major computing infrastructure projects collectively worth GBP1.3 billion (US$1.7 billion).
Analysts suggest this move diverges from the preceding government, and could significantly hinder the kingdom's ambitions to lead in AI, either globally or in Europe.
Dropping the axe on AI
According to reports from CNBC and BBC, the two national AI computing projects were both proposed by the previous Conservative administration.
One is a GBP 500 million AI Research Resource initiative, aimed at enhancing the UK's computational infrastructure. Around GBP300 million has already been allocated and is set to continue as planned.
The other is an exascale supercomputer project at the University of Edinburgh with a hefty price tag of GBP800 million. The next-generation supercomputer is said to be capable of performing one trillion calculations per second.
This decision aligns with the new Chancellor of the Exchequer Rachel Reeves' recent announcement of various spending cuts, driven by the GBP 22 billion (US$28 billion) in unfunded commitments left by the former Conservative government.
A spokesperson from the UK's Department for Science, Innovation, and Technology (DSIT) emphasized that the government had to make difficult but necessary spending decisions across all departments to restore economic stability and foster national growth. However, the spokesperson also noted that the new government remains committed to building technology infrastructure that can generate growth opportunities.
Following the Labour government's announcement to cancel the projects, the University of Edinburgh's president requested a meeting with the Chancellor and DSIT officials, citing the university has already poured GBP 31 million of investment into constructing a supercomputer lab.
The cancellation has faced criticism from industry stakeholders. Barney Hussey-Yeo, a tech company founder, expressed concerns that reduced government investment might drive more entrepreneurs to the United States. Trade association techUK urged the UK government to quickly propose new initiatives to avoid lagging behind other countries in the critical AI sector.
A new AI approach on Downing Street
This situation highlights the differences in AI development strategies between the former Conservative government and the new Labour government. The previous administration under Rishi Sunak prioritized AI leadership and hosted a global AI safety summit, albeit without introducing any AI regulations to avoid stifling innovation.
In contrast, Prime Minister Keir Starmer's new government focuses on establishing AI regulations and advancing the recently introduced AI Opportunities Action Plan. This plan aims to improve the UK's computing infrastructure to meet AI demands, exploring strategic directions for supporting various industries with AI and other emerging technologies.
The new government's more cautious approach is reflected in King Charles III's speech written by Starmer which states that the new government will "seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models."
The industry noted that the UK's AI Bill, which will be the country's first legislation on AI, was notably not mentioned in the King's speech. The new law is expected to follow the Labour Party's pre-election pledge to introduce "binding regulation on the handful of companies developing the most powerful AI models".
