UK AI plans could deepen regional divides, researchers warn

Labour’s plans to use AI to transform the UK economy and public services risk worsening existing inequalities, according to researchers from The University of Manchester and The University of Edinburgh. AI adoption is concentrated in London, the South East and larger businesses, raising the risk that already productive regions and companies pull further ahead while lower-productivity sectors and areas fall behind.

The Government’s AI Opportunities Action Plan includes increasing UK AI computing capacity twentyfold by 2030, creating AI Growth Zones, establishing a National Data Library and expanding AI use across government. Only 15% of UK businesses had adopted at least one AI technology in 2022, with uptake strongest in IT and telecommunications and legal services, and much lower in hospitality, health and retail.

Major infrastructure constraints could also limit the strategy. The UK has only around 3% of the world’s computational power, and researchers estimate that a twentyfold expansion could increase energy used by AI infrastructure from around 3.6 terawatt-hours (TWh) in 2020 to 72 TWh, putting pressure on electricity grids, water supplies and net zero goals. Poor-quality government data, legacy IT systems and shortages of AI skills, especially in smaller businesses and the public sector, could further slow adoption.