Liz Kendall Advocates for AI Adoption as UK Government Launches £500m Fund Investment
Technology Secretary Liz Kendall has called on the British public to embrace artificial intelligence, dismissing widespread concerns over its potential impact on employment and cybersecurity. This appeal coincides with the government's announcement of its inaugural investment from a newly established £500m sovereign AI fund, aimed at bolstering the UK's position in the global AI landscape.
Government Takes Stake in AI Startups to Foster Innovation
Speaking on Thursday, Kendall emphasised the necessity for the UK to "seize" the opportunities presented by AI, despite recent warnings highlighted by US startup Anthropic, which revealed an AI model posing significant cyber threats. She acknowledged public anxieties, stating, "People are worried about the risks and what it means for their jobs," but countered that AI entrepreneurs are confident in their ability to create new employment opportunities and address global challenges.
In January, Kendall admitted that automation through AI would lead to the loss of "some jobs," but she stressed that it would also generate novel roles, fostering economic growth. The government's investment includes an undisclosed shareholding in London-based Callosum, a firm specialising in optimising computer chip interoperability for AI training and operations. Additionally, a stake has been acquired in a second, yet-to-be-named business.
Supercomputer Access and Support for AI Development
As part of the initiative, six UK companies will gain access to government-funded supercomputers to advance their AI models. In exchange, the government retains "a right of first refusal" for future investments in these firms. The value of this computational support contributes to the overall £500m fund. Among the beneficiaries are Prima Mente, which is developing biological foundation models to combat diseases like Alzheimer's; Cursive, founded by Google DeepMind alumni and focused on autonomous AI agents; and Odyssey, which creates 'world models' simulating real-world interactions for AI systems.
Chancellor Rachel Reeves highlighted the strategic importance of nurturing national AI champions, asserting that such support ensures internationally competitive companies can "start, scale and stay here in Britain." The sovereign AI unit, modelled after a venture capital fund, was officially launched at the London offices of Wayve, a self-driving car startup valued at $8.6bn (£6.4bn).
Industry Confidence in UK's AI Potential
Danyal Akarca, co-founder of Callosum, praised the UK as the "natural place" for AI development, citing its robust university talent pool and private sector labs like DeepMind. This sentiment underscores the government's broader vision to position Britain as a leader in AI innovation, balancing risk management with proactive investment in cutting-edge technologies.
