LONDON, UK – JUNE 12: The 9th edition of the Artificial Intelligence Summit kicks off with the participation of international technology companies, in London, United Kingdom on June 12, 2024. (Photo by Rasid Necati Aslim/Anadolu via Getty Images)
Anadolu | Anadolu | Getty Images
The UK government has canceled 1.3 billion pounds ($1.7 billion) worth of computing infrastructure projects, in a major setback to the country’s ambitions to become a world leader in artificial intelligence.
A government spokesman confirmed to CNBC that two major taxpayer-funded spending pledges, worth £500m and £800m respectively, were dropped in order to prioritize other budget plans.
The £500m pledge, promised by former prime minister Rishi Sunak’s government last year, was meant to go to the AI Research Resource, a development initiative aimed at boosting the UK’s computing infrastructure.
Meanwhile, the £800m pledge, also announced last year, would have funded the creation of a next-generation exascale computer, capable of 1 trillion calculations per second, at the University of Edinburgh.
These initiatives would have boosted the UK’s ability to build high-performance infrastructure capable of running advanced AI models, which consume a lot of energy and require huge amounts of training data.
The newly elected Labor government said none of those commitments would now be taken forward.
“We are fully committed to creating technology infrastructure that delivers growth and opportunity for people across the UK,” a UK Department for Science, Innovation and Technology (DSIT) spokesperson told CNBC via email.
The spokesman added that the government was making “difficult and necessary spending decisions across all departments in the face of billions of pounds of unfunded commitments”.
“This is necessary to restore economic stability and fulfill our national mission for development,” said the DSIT spokesperson.
Last month, the government launched an AI Opportunities Action Plan. He said this plan will seek to identify how the UK can strengthen its computing infrastructure to better meet its needs and look at ways in which artificial intelligence and other emerging technologies can better support Britain’s industrial strategy .
Earlier this week, British Chancellor of the Exchequer Rachel Reeves announced a raft of spending cuts after revealing Labor had inherited 22 billion pounds ($28 billion) in unfunded promises from the centre-right Conservatives.
Under Sunak, the government had made leadership in artificial intelligence a key priority, hosting a world summit on artificial intelligence security at the famous Bletchley Park country estate, which was once home to World War II spies who helped Britain to defeat Nazi Germany.
Prime Minister Keir Starmer’s government is seeking to introduce new legislative regulations for the artificial intelligence industry, unlike his predecessor, who chose not to issue formal AI legislation on the grounds that it would limit innovation.
The Labor government was widely expected to announce the introduction of the UK’s first artificial intelligence bill in a speech delivered by King Charles III last month. However, this did not happen. Instead, a DSIT spokesperson told CNBC that the government will consult on AI regulation plans in due course.
