AI Opportunities Action Plan: ‘A good start but five times more investment needed’

In response to the government’s new AI Opportunities Action Plan, revealed today, Nigel Church, Chief Executive Officer of Emerge Digital, an award-winning managed IT service provider and AI specialist firm, offers his thoughts on why, despite this being a step in the right direction, the government needs to be doing much more to increase AI adoption across the public sector.

Nigel said, “The £14bn investment is a good start, but it needs to be five times that to truly reflect the growth and cost-saving potential of AI. The UK’s global leadership in cyber was built on investment in localised centres of excellence, so focusing investment through AI Growth Zones is a smart approach.”

“The government should refocus on the Levelling Up agenda of the previous government, and review the industrial strategy to ensure it covers every region of the UK. It’s vital to consider how AI will impact industries and communities nationwide.”

“The global finance model is a major barrier. US tech giants often acquire competitors, and we lack sufficient protection and funding for UK companies to grow and resist takeovers. The Competition and Markets Authority needs to do more to protect and nurture homegrown innovation.”

“We need greater protections for UK innovators and an environment that attracts substantial investment beyond traditional levels. Look at Friends Reunited – it was a UK platform ahead of its time, but it lacked the support to scale in the way Facebook did.”

“AI has the potential to transform public services, improving customer experience, reducing costs, and delivering better outcomes for citizens. However, ensuring the right infrastructure is in place is crucial so everyone can access and benefit from these innovations.”

“The risk is overregulating and stifling innovation. The UK needs to strike the right balance, allowing the tech industry to self-regulate where possible, rather than imposing heavy-handed government controls. AI is going to impact every aspect of life, and we need to embrace that while ensuring fairness and accessibility.”