The Chancellor has announced a £2.5 billion boost to help the UK see the fastest adoption of AI in the G7 and secure the UK as a world leader in AI and quantum.
UK AI and quantum technologies will receive £2.5 billion, hoping to anchor the world’s most promising AI and quantum companies in Britain to ensure they start, scale and succeed in this country.
The investment delivers on the government’s modern Industrial Strategy, which identified Digital and Technologies as one of eight high-growth sectors critical to long-term economic renewal.
Since 2020, more AI companies have been founded in Britain per capita than anywhere else in Europe; and the UK is home to the second most Quantum companies in the world.
The funding includes a £500 million Sovereign AI Fund, set to be launched in April, which will give British companies access to funding, compute and other support to compete and succeed globally.
There is £2 billion to upgrade the UK’s quantum capabilities, including a first-of-its-kind procurement programme worth up to £1 billion to procure commercial-scale quantum computers.
Chancellor Rachel Reeves said: "AI is the defining technology of our era. The choice is this: we can bury our heads in the sand and leave it to other countries - whose values may differ from ours - to shape and own this technology. We can leave it to the market alone, and let the balance of risk and reward be determined by a super-wealthy few. Or we can chart our own course.
"That’s why I am setting out an ambitious plan for the UK to achieve the fastest AI adoption in the G7. In a world defined by technological change, Britain cannot afford to stand still. With this strategy, I believe we can approach the future with confidence – with the technologies of the future invented, built and deployed here in Britain."
Liz Kendall, Secretary of State for Science, Innovation and Technology said: "I am determined this country grasps the benefits Quantum computing will bring. It is only by keeping pace with technological progress that we can deliver the high-paid jobs, cutting-edge public services, and innovations which change lives.
"Today’s announcements are an investment in our future - unlocking better health, wealth, and more opportunities for communities across the country.
"This government is ushering in a Quantum leap - making the choice today to back UK scientists, companies, and innovators so we can deliver a future that works for all."
