Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
Artificial intelligence (AI) in the United Kingdom - statistics & facts
The United Kingdom, the birthplace of such renowned scientists as Charles Babbage and Tim Berners-Lee, is no slouch when it comes to the development of computer technologies. With hundreds of technology companies registered on the London Stock Exchange, the UK is a prime developer of advanced computer technologies worldwide. Unsurprisingly, its involvement in the development of artificial intelligence (AI) is equally impressive. The global AI market, valued at nearly 300 billion U.S. dollars in 2023, is growing considerably from year to year. It is estimated that the AI market in the UK will exceed 4.5 billion pounds in 2024, a huge value for a still-maturing technology.
As is the case in other industries, London and the southeast of the UK hold the lion’s share of AI production, being home to the majority of AI activity in all sectors. There are a couple of notable exceptions, namely in the automotive industry, and the energy and utilities sector. In these industries, the hinterland outside of London constitutes a strong part of AI activity.
The UK announced similar stimulus measures for its high-tech sectors along with the EU and the US, though on a much smaller scale. The UK has been closer to the United States in its regulatory practices, preferring a light touch and reacting, if need be, as opposed to the EU’s pre-emptive regulation tactic.
London calls the AI labor to it
The UK, with the London megapolis at its heart, continues to attract a considerable amount of skilled labor each year. In the AI field, this manifests as a considerable amount of companies specializing in technology consultancy. This enables the UK to maintain an efficient and skilled workforce within the AI sphere, producing quality technologies and software for the ongoing AI revolution. It is perhaps unsurprising that this AI activity is not consistent across the entirety of the UK.As is the case in other industries, London and the southeast of the UK hold the lion’s share of AI production, being home to the majority of AI activity in all sectors. There are a couple of notable exceptions, namely in the automotive industry, and the energy and utilities sector. In these industries, the hinterland outside of London constitutes a strong part of AI activity.
Difficult tech seas for skilled sailors ahead
Despite the strengths of its AI field, the UK is facing some headwinds. Economically the country has been struggling since the end of the COVID-19 pandemic. Growth has been subdued and limited in possibilities post-Brexit. In the field of AI, particularly, there are also barriers to improving the situation in the UK. The most widely perceived barrier is the lack of knowledge or networks for markets outside the UK, with nearly 30 percent of companies facing this problem, followed by a lack of finance or insurance for exporting AI products and services abroad.The UK announced similar stimulus measures for its high-tech sectors along with the EU and the US, though on a much smaller scale. The UK has been closer to the United States in its regulatory practices, preferring a light touch and reacting, if need be, as opposed to the EU’s pre-emptive regulation tactic.
Future uncertain
The ongoing AI revolution will make its mark on the UK, much as it will on most advanced economies. How the country deals with the challenges and opportunities, through regulations, incentives, co-operation with like-minded nations, and through the fostering of innovative projects will all have a great impact on the United Kingdom. The UK has weathered tough economic and innovative storms before and is likely to maintain a strong course in the AI field despite these challenges.Bergur Thormundsson
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Jun 19, 2024
Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
