Think tank warns Big Tech dominance could curb UK AI ambitions

UK businesses and the Institute for Public Policy Research warn that Big Tech’s grip on digital infrastructure could undermine the government’s plans to use AI as a driver of economic growth. A survey for the report found 79 percent of UK businesses relying on digital platforms are concerned about dominant tech companies using their market power to limit competition, ranking the issue above access to finance or talent as a constraint on growth.

The IPPR points to concentrated control across core markets: Google handles more than 90 percent of UK internet searches, Microsoft and AWS each control 30 to 40 percent of customer spending on cloud services, and Google takes another 5 to 10 percent. The report also notes that Microsoft is being investigated over its position in business software.

The think tank criticizes the Competition and Markets Authority for failing to create stronger conditions for challengers, citing voluntary commitments rather than binding rules in some investigations. It urges ministers to give the regulator clearer political backing to act faster and more boldly.

The stakes are rising as AI infrastructure becomes more concentrated around Nvidia, hyperscale cloud providers and large developer partnerships. Microsoft, Google and Amazon have collectively invested in excess of $20 billion in major AI developers, raising concerns that an oligopoly could leave the UK with limited leverage and constrained financial returns.