UK sets out funding for AI security and domestic growth

The UK government has outlined an investment package ahead of the Budget to strengthen AI security, support domestic companies and expand adoption across public services and local economies. The plans aim to reduce dependence on overseas technology while addressing concerns about jobs and ensuring workers can develop new skills.

Security measures include £165m for a National AI Biosecurity Initiative, including £100 million for a lab focused on detecting and monitoring biological threats. OpenAI and Anthropic will support the lab with up to £200 million in AI model credits, alongside partnerships with Google DeepMind and Basecamp Research. The package also includes an additional £120 million for the AI Security Institute, £60 million for a National Cyber Shield using agentic AI, and £70 million for a centre to identify cyber vulnerabilities.

Domestic industry support includes an additional £60 million for the Sovereign AI Fund, with a new focus on physical and industrial AI, including robotics and advanced manufacturing. A further £18 million will support a UK Advanced Chip Design Academy to strengthen semiconductor skills and links between research and manufacturing.

Regional measures include a cyber and AI training centre in Manchester and £30m for local partnerships involving councils, businesses and education providers. An additional £23 million over the next three years will support the AI Economics Institute’s research into productivity, growth, jobs and living standards.