These announcements have come at a time when the UK risks losing its allure to a steeper decrease in investment compared with its European counterparts, with late-stage funding falling sharply between last year and this.
A decline in compute capacity also stresses a critical need for the government to address supply-side barriers, creating new research and development initiatives for compute alternatives and new acceleration programmes for quantum technologies.
As the UK positions itself as a potential global leader in the AI sector, addressing these critical challenges will be paramount to achieving sustainable growth.
The government’s commitment to reforms, alignment with international standards, and proactive measures to address workforce concerns will be pivotal.
Navigating these complexities and fostering collaboration between European governments, the domestic industry and the public to address the potential security challenges raised by the National Cyber Security Centre will be imperative.
In doing so, the UK can capitalise on its current AI market strength, encouraging investment, innovation and ultimately solidifying its position as a frontrunner in the global AI landscape.
For the UK to establish itself as an AI powerhouse in the new year, the most essential pillar has to be international cooperation.
Britain has long been a leader in the European tech race, but as countries such as France and Germany are hot on its heels, now is the time for policymakers to radically alter their strategy to ensure the UK remains a promising landscape for investment, both domestically and overseas.
The most important lesson for policymakers to learn is the value of international collaboration when it comes to this exciting new sector.
2023 has been an unpredictable year for both startups and the tech sector as a whole. However, with the Bank of England’s recent decision to continue their pause on interest rate hikes, we are certainly witnessing signs of stability within the UK economy.
This stability should give regulators, founders and investors alike the confidence to plan their long-term strategies, which should see a flow of investment sweep through the country in 2024.
The government’s Mansion House reforms represent an excellent step towards freeing up the trillions of pounds worth of capital locked away in pension funds, delivering an open, green and technologically advanced financial sector that can support the huge untapped potential of Britain’s AI startups.
With the right level of government support, it is estimated that this sector could add a staggering £400bn to the UK economy at a time when it most needs it, making it imperative that policymakers act now.
Claire Trachet is chief executive and founder of business advisory Trachet
