Government Calls for NHS and MoD to Invest in British AI Technology
Treasury minister Spencer Livermore has revealed that the NHS and Ministry of Defence will be encouraged to purchase British artificial intelligence technology as part of a new strategy to stimulate economic growth. This move comes amid the ongoing Iran crisis, which has heightened global uncertainty and raised fears of inflation and weaker growth due to soaring oil prices.
Chancellor Reeves to Outline Economic Vision
Chancellor Rachel Reeves is set to restate her economic strategy in a high-profile lecture on Tuesday. Livermore, who works closely with Reeves on policy, stated that the chancellor will emphasize three key strategic choices: strengthening ties with the EU, enhancing regional policy in the Oxford-Cambridge corridor and improving connectivity between Northern cities, and making a significant bet on the benefits of AI.
On AI, Livermore highlighted Reeves's desire to present an optimistic perspective, despite growing concerns about the technology's potential impact on jobs, particularly for young people. "There are massive opportunities here and I think that’s what we want to try to talk about," he said. "Clearly we want to be one of the fastest adopters in the world." He added that AI offers substantial growth potential, which could lead to more job creation.
Addressing Criticisms and Procurement Challenges
Labour has faced criticism for its close relationships with US big tech firms like Palantir, which holds a contract with the NHS. Additionally, a recent analysis showed that AI deals announced by the government over the past two years have yet to yield concrete investments. Livermore acknowledged these issues, noting that UK government procurement is often too slow to adopt new technologies.
To combat this, he announced plans to establish a rapid innovation procurement taskforce outside the traditional system, with pilots in defence and health sectors. "We’re going to set up a rapid innovation procurement taskforce, outside the traditional procurement system. And we’re going to pilot that in defence and in health, so that we can get the state to buy new technologies quicker. And that is really exciting," Livermore explained. He emphasized the need for the government to become an early customer for tech companies, especially given the rapid pace of AI development.
Brexit and Economic Fundamentals
Livermore also addressed Brexit, suggesting that Labour is increasingly willing to advocate for a closer trading relationship with the EU, while adhering to manifesto red lines such as no free movement of people. "The consequences of Brexit are showing to be worse even than people thought at the time. And I think this government does now have the confidence to be very honest about that, to confront that," he said, calling for a fact-based discussion on the issue.
Regarding the economic impact of the Middle East conflict, Livermore, a former adviser to Gordon Brown, insisted that the fundamentals of the economy were strong entering this period of uncertainty. He pointed to Reeves's efforts to repair public finances and implement cost-of-living measures, despite recent data showing zero GDP growth in January. "The spring forecast was perfectly timed as a sort of backdrop to the strong fundamentals that we had going into the crisis," he noted, defending previous budget decisions.
Preparing for Future Scenarios
As a member of the "Iran Board" established within the Treasury, Livermore said ministers and officials are developing measures to prepare for various scenarios. He stressed that the crisis reinforces the need for Reeves's "securonomics" approach, which involves an active and strategic state that supports specific sectors and regions with public funding. "Clearly, the impact in terms of the British economy will depend on the severity and the duration of this crisis, and no one knows what that is," he conceded. "We are doing the right things in the Treasury to prepare."
In a related development, AI and robot technology are being utilized by NHS England to assist patients with suspected lung cancer at Guy's and St Thomas' Hospital in London, showcasing practical applications of the technology in healthcare.
