Liz Kendall: The UK is in prime position to become a global leader in AI — but greater tech industry support is needed to avoid falling behind

The UK needs to do more to seize the opportunities of AI or else risk the country’s economic prosperity and national security, according to technology secretary Liz Kendall.

Speaking at the Royal United Services Institute (RUSI) yesterday, Kendall said that UK tech companies need greater backing, promising a new AI hardware plan to secure Britain’s future capability in chips and semiconductor technologies.

"The countries which harness AI will not only lead the race to cure diseases, discover new materials and create trillion dollar companies, but also build far more powerful militaries," she said.

"Put simply, AI is now the engine of economic power and hard power."

Kendall warned that 70% of global AI compute is now controlled by just five companies, up from 60% a year ago, and that the UK needs to focus on AI sovereignty to reduce dependency and increase resilience in key national strategic priorities.

This, she noted, will require more backing for British AI firms, as well as closer cooperation with international partners – particularly other so-called “middle power nations” – on standards for how AI is deployed.

In terms of backing British AI, she highlighted the launch earlier this month of a Sovereign AI scheme, with £500 million of investment promised to ramp up support for companies across the country.

"This government believes AI sovereignty is not about isolationism or attempting to pull up the drawbridge and go it alone. We will continue to use the best technology and welcome inward investment because that’s what our public services and economy demand," she said.

"For Britain, AI sovereignty is about reducing over-dependencies and increasing resilience in key national strategic priorities, as the prime minister has rightly argued."

Kendall also highlighted existing international partnerships, such as a strategic science and technology partnership with Germany that includes a £6 million joint quantum project and a new Entente Technologique with France.

The government has also secured a growth and innovation partnership with Canada along with a digital partnership with Japan covering critical areas such as AI and cybersecurity.

Bullish AI outlook welcomed by industry

The speech has been welcomed by the industry, with Greg Hanson, group VP and head of EMEA North for Informatica, urging “discipline and control” with the development of the UK’s AI infrastructure.

"The dual emphasis on investing in UK AI hardware and working closely with international partners on AI standards will help the UK strengthen its AI foundations,” he said.

Raj Gawera, COO at the UK Semiconductor Centre, echoed Hanson’s comments and welcomed the launch of an AI hardware plan.

“This is a strong and timely initiative, and it should be the foundation for sustained attention and investment into the world-class work already happening across the UK’s semiconductor and hardware ecosystem,” he commented.

Gawera noted that the UK is “well placed to capitalize on the global AI boom” and boasts strengths across a range of areas, spanning chip design, photonics, advanced materials, and compound semiconductors.

"Our priority must be backing British companies to scale, capture more of the technology stack, and translate innovation into economic growth,” he added.

Graeme Stewart, head of public sector at Check Point Software, specifically highlighted the UK’s global reputation for world-class research and development (R&D) and educational institutions as a key appeal for the industry.

"We have some the world’s leading academics, most innovative companies and must be unafraid of taking balanced risks and educating our future leaders in industry and academia to put us at the cutting edge of sovereign AI capability," he said.

"Government policy that supports investment by industry, targeted funding for universities that support industry with courses, apprenticeships that directly drive a modern white heat of technological revolution."

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