AI Opportunities Action Plan
The AI Opportunities Action Plan launched by the UK Government today https://www.gov.uk/government/publications/ai-opportunities-action-plan/ai-opportunities-action-plan
is to be welcomed though the Prime Minister’s determination that “the UK will be the best place to start and scale an AI business” is perhaps somewhat ambitious as the USA has so much more firepower in terms of the financial resources from venture capitalists and other investors to scale-up companies. Until monies are unlocked from UK pension schemes to fund innovative ventures scale-up financing will continue to be in short supply; a good start is being made here with the Mansion House Compact (a voluntary industry-led initiative to secure better financial
outcomes for Defined Contribution (DC) savers by increasing pension investment into unlisted equity).
The UK certainly has the creativity, knowledge and drive to foster many new AI businesses; in fact in 2024 here in Berkshire, Reading was cited as one of the best locations for AI businesses, No3 after Cambridge and Bristol, https://www.businessfinanced.co.uk/ai-business-rankings-2024/. Perhaps Reading can take a lead as one of the AI Growth Zones that is to be set up, alongside the first of these, our neighbour at Culham, Oxfordshire. Under the Governments plans AI start-ups and scale-ups in these zones should see speedy planning approvals for data centres, better access to the energy grid and the raised profile to attract investment globally. UK investment returns for venture capital funds are now commensurate with those achieved in the USA, making the UK an attractive proposition for investors such as pension funds where VC returns are consistently higher than for other asset classes. We need these funds to invest in those AI businesses that will form the billion dollar success stories of the future.