Labour’s AI plans could widen UK inequalities

Labour’s plans to use AI to transform the UK economy and public services face significant risks from uneven adoption, weak infrastructure and persistent skills shortages, according to researchers from The University of Manchester and The University of Edinburgh. AI use is concentrated in London, the South East and larger businesses, raising the prospect that already productive regions and firms benefit most.

Only 15% of UK businesses had adopted at least one AI technology in 2022, with higher uptake in IT, telecommunications and legal services than in hospitality, health and retail. Smaller companies face disadvantages in competing for scarce AI expertise, while public-sector adoption is constrained by outdated systems and fragmented data.

The UK currently has only around 3% of the world’s computational power, much of it not optimised for AI. A twentyfold increase in computing capacity could raise AI infrastructure energy use from around 3.6 terawatt-hours (TWh) in 2020 to 72 TWh, more than a quarter of the UK’s total electricity consumption.

Government data quality is another barrier, with 62% of responding government bodies in a National Audit Office survey identifying limited access to good-quality data as a major obstacle. Researchers warn that AI cannot serve as a simple technological fix for deep-rooted economic and public-service problems.