The UK government has pledged £2bn to fund its AI action plan, Chancellor Rachel Reeves confirmed today.
The funding is part of the government’s latest spending review, which outlines departmental budgets for the next four years.
This investment supports the AI action plan first announced by Prime Minister Keir Starmer in January 2025.
At that time, Starmer said the government aimed to embed “AI into the veins” of the UK economy.
He also promised to throw “the full weight of Whitehall behind this industry”.
The action plan is based on 50 recommendations outlined by Matt Clifford, co-founder of Entrepreneur First.
These measures include expanding data access and capabilities, developing domestic AI talent, and updating regulatory frameworks.
The plan also aims to accelerate adoption of AI across both public services and private industry.
The government estimates that fully implementing the plan could add £400bn to the UK economy by 2030.
While the tech sector has welcomed the move, the creative industries have expressed serious concerns.
At the heart of the dispute is the government’s proposed Data (Use and Access) Bill, now under review in the House of Lords.
The legislation seeks to allow AI companies to train their models using copyrighted materials without prior licensing.
Members of the Lords and creative professionals are pushing back, calling for stronger protections for artists and creators.
The British Film Institute (BFI) recently published nine key recommendations for safeguarding the screen industry.
These include establishing a licensing framework for generative AI and mandating AI training for creative workers.
The BFI also calls for clearer disclosures when AI is used in film or television productions.
Additional recommendations include targeted financial support for creative technology firms and ethical AI development tools.
The organisation also emphasised funding access for independent creators, especially for AI-related projects.
The cultural sector has warned that failure to act could undermine the future of British creative work.
Advocates stress that transparent governance is essential to balance innovation with the protection of intellectual property.
Meanwhile, government officials maintain that AI is critical to future economic competitiveness and public service delivery.
The Chancellor has described the AI investment as a “strategic priority” for the current administration.
Further details about the AI action plan’s rollout are expected in the next quarterly government digital strategy update.