Why the UK is immune to the 'Brussels AI effect'?

Early thoughts on AI and technology have generally been well considered in the corridors of Whitehall and Parliament. However, challenges loom ahead.

Setting the scene, the policy making framework:

To begin with, the fact that policy makers and legislators are having these conversations sets an encouraging environment for the AI economy to grow in the UK. At the time of writing this article, The Digital Markets, Competition and Consumers Bill is its final stages before becoming law, and the Automated Vehicles Bill is its final report stage, paving the way for the provision of self automated vehicles on UK public roads. We also had a robot, Ai-Da, testify before a committee in the House of Lords, which was a first in history. This forward-looking framework is crucial in preparing and introducing AI in a cohesive manner in society. This general positive attitude from politicians is not only important for the sake of policy making alone, but to also lead and shift public opinion positively into that direction and embark on this anthropological journey. Therefore, the recent work by policy makers and legislators in the UK has been world leading thus far, especially that there has been no political leveraging on this topic.

The unique AI ecosystem of the UK:

Having set the scene on the policy making front, let us turn our attention to the AI ecosystem. London is the leading startup hub in the UK, but the rest of the UK is also growing and developing as well. The usual factors, such as its location, preferable time zone, dynamic workforce and vast financial sector allowing for capital investments are the foundations driving this success. But to persist in its success, the UK has ensured that information is accessible, through its commitment to open data, which is key for any AI startup. The culture as well plays a factor: London in particular is driven, creative and ambitious, where self-employment is encouraged through working spaces, opportunities and events. It must be acknowledged that this is the product of  fierce competition in the city, which can be difficult but by no means negative. As such the AI startup ecosystem is very tempting financially and culturally, fostering an attitude of working for yourself, something which we are yet to see in full swing in Europe.

Investment in AI R&D is becoming popular in the UK:

This ecosystem is supported by good R&D investment and arguably world leading in some aspects. In 2020, the UK was spending on AI around 25.4 euro per capita, compared to the EU27 of 24 euros. The “golden triangle” between Oxford and Cambridge fosters an element of research, followed by implementation. This process is supported by the government, where it was recently announced that the UK will invest £100 million in creating the first AI Safety Institute in the world to evaluate risks in AI models. This is an important step as it shows the UK’s willingness to directly tackle the main concerns of AI, something which the Americans are not keen on researching. The UK further led the way by hosting the first major AI summit in Bletchley Park. On top of that, the UK government announced that £90 million will go towards launching nine new research hubs across the UK and a partnership with the US on responsible AI. The private sector is confident about the UK and its AI missions, which is why it has also invested £18.8 billion in AI from 2016 to 2023. 

Brexit and the UK’s future as an independent nation:

One contentious issue that is often discussed is the impact of Brexit. Putting aside the tumultuous campaigning and politicisation of the referendum, the reality is that Brexit presents an opportunity for the UK to jump start itself away from a sluggish economy on the continent. Brexit was a shock to those on the continent and to many in the UK, which is why it was chaotic and initially damaging due to natural uncertainties. Now however, the UK is free to arrange agreements on specific issues with specific countries quickly and pragmatically from its side. Partnerships with multinational companies and countries themselves have become conveniently easy and adaptive, which is important at a time where AI is its in infancy and will grow exponentially and differently over the next few years. This simply would not happen under a European system where the Council and Parliament have to legislate, then allow time for individual states to legislate and implement, and that is setting aside the willpower required to bring the different interests of 27 nations with 24 official languages under one banner. While the above description of the European process may be a simplification, the fact is that is the perception of companies and countries when it comes to making arrangements with the EU.

Some challenges ahead:

Despite these strong indicators, there is a risk that the UK could slip behind. These are my three top concerns:

Fear of failure: One market aspect that the US always did better than the UK is accepting business failures, learning and reacting, before finally starting again. In the UK however, there still is a fear of failure as well as societal taboo when it comes to not succeeding. In some regards this is good as it drives good ideas but on the other hand learning curves are important for businesses and if we do not encourage AI businesses to learn, then we will risk halting the success we have achieved thus far.

Change of government policy: With an election looming, it looks as though the opposition party is guaranteed a victory at the next election. This will mean "reprioritisation" of agenda, and speculations in the market may hurt confidence in the UK market. However, recent investments show commitment and long-term strategy regardless of which party is in power, which is assuring.

Beware the Luddites Lobby: With both main parties in the UK seeking to win the “workers vote”, some will claim that AI and technology will increase unemployment by taking over existing jobs, which has been proved economically and historically as being false. And Although there is no indication that AI will play a big role in this year’s elections, a sudden growth in the industry may lead to lobbying groups being formed to campaign for strict regulation and prohibitive legislation that may impede on the development of AI in the UK.

Conclusion: the victory line is in sight, let’s not lose it.

The UK has done reasonably well in developing its own AI framework, and with Brexit, it broke away from the “Brussels AI effect”. Whilst  we can be our harshest critics, the building blocks of AI growth in the UK have been effectively structured, through policy maker encouragement, as well as the confidence of the market in UK talent, R&D and stability of its positive approach to AI cohesion into society. As with every country there are challenges, mainly political, particularly in this difficult economic climate, which if the UK withstands, can be a world leader in AI.