Liz Kendall, the technology secretary, has warned that Britain must seize the initiative on artificial intelligence or be left at the "mercy and whim" of a future shaped by the technology. Speaking about the UK's ability to develop its own AI capabilities, Kendall highlighted the growing concentration of AI development within a few large tech companies, particularly in the United States.
Big Tech's Dominance in AI
Kendall noted that 70% of the world's AI computing power is provided by US companies, with five major firms—Amazon, Google, Meta, Microsoft, and Oracle—controlling a significant share. "Control of this incredibly powerful technology is becoming increasingly concentrated," she said, emphasising that the UK "must shape this technology, not just be shaped by it."
Government Initiatives
To bolster domestic capabilities, Kendall pointed to the recent launch of a state AI investment fund as evidence of Labour's support for homegrown firms. She also revealed that the government is developing a plan to increase its influence in the design and manufacture of chips that power AI systems.
These remarks come amid concerns that the UK is struggling to make its own way with AI, despite producing a stream of academic talent and hosting companies like Google DeepMind. Last week, former deputy prime minister Nick Clegg noted that the UK lacks "a single steam engine" in the AI revolution due to high energy costs and unresolved copyright disputes.
Challenges and Opportunities
OpenAI, the US startup behind ChatGPT, has paused a multi-billion dollar datacentre project in the UK, citing high energy costs and regulation. A Guardian investigation also revealed that many AI investments in the UK are "phantom investments," and a supercomputer scheduled for 2026 remains a scaffolding yard in Essex.
Kendall singled out datacentres as an example of market concentration, with US firms increasing their share of global AI computing from 60% to 70% in the past year. However, she stressed that a push for AI sovereignty should not weaken the UK's relationship with the US, home to leading AI companies like OpenAI and Anthropic.
No Pause on AI Development
Kendall dismissed calls to pause AI development, arguing that such a move would be a "betrayal of British talent and British interests." In December, MPs debated a proposed hiatus by campaign group PauseAI, but Kendall warned it would send a message that Britain is "closed to new ideas and new opportunities."
"If we retreat from progress, we retreat from the world, leaving this powerful technology to be exploited by other nations to their advantage and our disadvantage," she concluded.
