What the Government's AI Action Plan Means for Your Business

This week, UK Prime Minister Keir Starmer delivered a landmark speech describing artificial intelligence as 'the defining opportunity of our generation'.

His announcement introduced the UK government's AI Opportunities Action Plan, demonstrating a significant commitment to ensuring the UK remains at the forefront of AI innovation and adoption.

As a technology poised to define the 21st century, AI is already driving productivity across industries and transforming public services such as healthcare and education. The government's new plan aims to help British businesses harness AI to boost competitiveness, foster growth, and increase funding for public services - as part of the Prime Minister's Plan for Change. Given that the UK is already Europe's top destination for AI enterprises, the Action Plan sets the stage for the nation to seize even greater opportunities in this rapidly evolving arena.

Why Does AI Matter?

Artificial intelligence (AI) allows computer systems to perform tasks that traditionally require human intelligence - like learning, reasoning, and problem-solving. AI is transforming how we work, live, and innovate. The UK government's Action Plan reflects a broader global shift toward embracing AI as a catalyst to progress, embedding it into the fabric of daily life and shaping the future across industries.

Government Focus on Smaller Enterprises and Researchers

A major emphasis of the plan is supporting smaller businesses to solve pressing challenges through AI, as well as helping researchers tackle real-world problems. By investing in the foundational AI research and prioritising AI adoption across the economy, the government hopes to bolster homegrown innovations while placing the UK at the cutting edge of global AI advancements.

Key Components of the Action Plan

AI technologies are progressing at an astonishing rate. The UK's Action Plan focuses on three primary objects:

1. Lay the foundations to enable AI
   Ensuing world-class computing and data infrastructure, nurturing a robust talent pipeline, and developing supportive regulation.
2. Change lives by embracing AI
   Encouraging both the public and private sectors to pilot and scale AI solutions quickly, driving better services and outcomes for citizens while boosting productivity.
3. Secure our future with homegrown AI
   Aiming to cultivate 'national champions' at crucial layers of the AI stack to ensure the UK not only benefits economically but also helps shape AI's future values, safety, and governance.

Core Principles Underpinning the Plan

The Action Plan also rests on four fundamental principles:

• Be on the side of innovators
  Every part of the Action Plan has been designed to benefit the people and organisations doing ambitious, ground-breaking work in the UK.
• Invest in becoming a great customer
  The government intends to use its purchasing power to improve public services, stimulate new AI markets, and bolster our domestic tech ecosystem.
• Crowd in capital and talent
  The government has announced its plans to attract top global talent to build and scale companies here, which in turn will bring in investors.
• Build on UK strengths and emerging areas
  The UK boasts world-class capabilities in AI application and integration. It also has rising strengths in AI for science, robotics, and other transformative fields that can spark broader innovation across the economy - strengths the government wants to harness further.

Standout Action Plan Highlights

Although there are 50 individual initiatives within the Action Plan, several deserve special mention:

1. Expanding computing capacity
   A major national investment in AI infrastructure, including a new supercomputer, aims to provide the computing power necessary for cutting-edge AI research and applications.
2. Establishing AI growth zones
   Special zones will allow fast-tracked approvals for data centres and other critical facilities. This move will streamline access to data and accelerate AI innovation; the first data centre of its kind is planned for Culham, Oxfordshire.
3. Opening up public data
   Anonymised data from public institutions - such as the NHS - will be harnessed to drive AI breakthroughs. While this might seem like a controversial move, it's designed to attract businesses keen to develop AI-based solutions for public-sector challenges, bolstering economic growth.
4. Talent development and attraction
   Recognising the importance of a skilled AI workforce, the government will promote technology-focussed education and introduce a new visa system to attract top international talent.

Implications for UK Businesses

Here's what the Action Plan might mean for your business...

Better Innovation Opportunities

The plan should result in greater access to computing power and public data, which will empower UK businesses to develop AI products across a wide spectrum of sectors - from healthcare to manufacturing - leading to more competitive offerings and faster time to market.

Streamlined Infrastructure Development

The creation of AI growth zones is designed to reduce bureaucratic hurdles for building AI-related facilities, encouraging a more supportive environment for businesses to expand their AI operations.

Improved Access to Skilled Talent

Education and recruitment initiatives will help alleviate the ongoing skill gaps that are pressing on the UK market, enabling businesses to assemble strong AI-focussed teams that can drive innovation and ensure a competitive edge.

How Can UK Businesses Keep Up?

With AI advancing so rapidly, many businesses may wonder where to begin. Below are some practical steps for incorporating AI in a way that feels sustainable and safe:

1. Assess your real needs
   • Identify specific areas where AI might add measurable value within your business - whether by automating repetitive tasks, enhancing customer support, or providing data-driven insights.
   • Defining clear objectives for AI implementation - such as reducing costs, increasing revenue, or boosting customer satisfaction - can help businesses approach AI with a clearer outcome in mind.
2. Build your foundational knowledge
   • Invest in training to ensure your team understands AI fundamentals and can spot practical applications - empowering your team with the basics helps you pave the way for longer term safety and success.
   • Consider collaborating with AI consultants or academic partners to address knowledge gaps.
3. Start small
   • Test AI on a limited, manageable project before scaling. This approach helps integrate AI incrementally without overwhelming staff or workflows.
   • Modern platforms like Kinabase can be an easy pathway to starting slow - ours lets you build up your AI usage gradually, so you don't get overwhelmed.
   • Monitor AI outcomes closely to refine your AI approach.
4. Invest in the Right Tools and Infrastructure
   • Having flexible systems with robust, AI-friendly architecture is essential to maximise AI's potential within your business.
   • Platforms like ours can seamlessly integrate AI into your existing processes so seamlessly that you won't even notice it's there - while still automating repetitive tasks and improving data accuracy.
   • Upgrading early can save time and money down the road.
5. Maintain Ongoing Interest and Engagement
   • Keep an eye on AI developments, and use this to create a culture of learning and experimentation within your business. For example, we post a constant stream of AI-related updates in our What's New? section.
   • Continuous upskilling and knowledge-sharing will keep your team adaptable and competitive.

The AI Opportunities Action Plan signals a pivotal moment for UK businesses: the government is gearing up to strengthen the country’s AI infrastructure, talent pools, and innovation capacity. By moving swiftly and strategically, companies can harness AI’s potential to streamline operations, unlock new markets, and fuel sustainable growth.

And if you’re ready to start integrating AI, Kinabase provides the modern foundation and tools to make it happen seamlessly.

About Innovate UK BridgeAI

Innovate UK BridgeAI works to drive productivity and economic growth by bridging the gap between AI developers and end-users in key high-potential sectors. With an emphasis on ethical innovation, transparency, and privacy, BridgeAI works to develop trust in AI solutions.

You can read about Kinabase’s share of the latest Innovate UK BridgeAI grant here: https://www.kinabase.com/news/2024-08-20-innovate-uk.

Sources

• UK Government, 'PM speech on AI Opportunities Action Plan: 13 January 2025', www.gov.uk.
• UKRI, 'Over £7 million awarded to help AI boost growth in the UK', www.ukri.org.
• UK Government, 'Government puts AI to work for bakers, road workers and more', www.gov.uk.
• UK Government, 'AI Opportunities Action Plan', www.gov.uk.
• Cover Image: pcruciatti - stock.adobe.com