Ahead of a crucial autumn budget, the British Labour government is developing a new, cost-cutting artificial intelligence plan that puts the public sector’s use of the technology ahead of direct corporate investment.
The government of Prime Minister Keir Starmer has been examining Al’s expenses since assuming office in July. The previous Protective Administration had proposed an investment of 1.3 billion pounds ($1.72 billion) in similar technology, which it has since cancelled. Among the promises made was an 800 million-pound commitment to create a supercomputer at the University of Edinburgh.
Although 1.3 billion pounds may not seem like much in the larger scheme of things, industry leaders attacked Starmer’s government, arguing that it shows that Britain is losing interest in supporting innovation. Compared to France, which is becoming known as a major Al powerhouse in Europe, recently committed to invest 2.5 billion euros ($2.77 billion) on the country’s own technological development.
According to a source close to the Department for Science, Innovation, and Technology (DSIT), the British government is also thinking of dropping plans to open an Al Safety Institute office in San Francisco. The office had been scheduled to open in the summer, and employees would have been employed at market rates, which were expected to be as high as $100,000 apiece.
“Labour always needs to somehow look different to the Tories, and reining in the Al safety stuff, the focus on existential risks, is an easy way to do that,” said a source.
Three people close to the DSIT claim that in July, tech minister Peter Kyle fired Nitarshan Rajkumar, one of the co-founders of the Al Safety Institute, from his position as a senior policy advisor, indicating a shift in course.
Although a new administration frequently appoints its own advisors, some in the business view leaving as an accidental mistake. Rajkumar did not state that his contract had been terminated when he announced his departure from DSIT on the social networking platform X.
Shortly after, Jordan Sullivan of the lobby organization Startup Coalition posted on X, “Huge loss to the UK civil service.” “Just the sort of person we should be doing a huge amount to keep inside the tent.”
At about the same time, in an attempt to come up with a fresh approach, Labour brought in Matt Clifford, a tech entrepreneur and key organizer of the Al Safety Summit held under Conservative leader Rishi Sunak last year. According to the source, Clifford will be presenting the idea in September, just in time for the government’s Autumn Statement the following month. According to a government spokesman, the government noted Al’s innovative ability and was still dedicated to using technology to promote opportunity and growth for citizens of the United Kingdom.
According to the three sources, IT minister Kyle wants to increase the use of AI in the public sector in order to save costs and increase efficiency while reducing the amount of money the government directly invests in business.
Last November, at Bletchley Park in Britain, the world’s first Al Safety Summit was held, bringing technological giants like Elon Musk and Sam Altman as well as international leaders like Kamala Harris. After Microsoft-backed OpenAl made ChatGPT available to the general public in November 2022, concerns about Al’s potentially harmful consequences grew, although these must be considered against the benefits of the technology.
According to a job description published by Reuters, the DSIT has already begun accepting applications from economists to forecast how widespread Al will affect Britain.
Clifford hosted about ten members from some of the largest venture capital firms in the world, such as Index Ventures, Lightspeed Venture Partners, and Sequoia Capital, at a previously secret meeting in Downing Street last week to discuss the government’s Al strategy.
The main topic of discussion, according to two attendees who spoke with Reuters, was how the government may use AI to enhance public services. They also talked about how the government may facilitate hiring foreign workers by startups and provide stronger support for university spinout enterprises.
“They didn’t give much away about where their thinking was at, beyond stressing that they only had a month to turn the review around,” a participant told Reuters.
The administration claims that in order to close a 22 billion pound deficit in public finances, hard choices must be made to reduce expenses everywhere.
Kyle stated earlier this month that he was “gearing up for a bold approach” in an interview. He claimed that the Al Action Plan would outline the needs of Britain’s future computing capacity and how the government can provide it. However, some business people claim it falls short of being bold enough.
“I believe Peter Kyle views this (Al) as a simple way to save money,” the Downing Street meeting attendee stated. “We’re seeing a serious scaling back of ambition.”
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