Senior figures from Boston Consulting Group (BCG) and its tech division, BCG X, discussed the intricate dynamics of the global AI race, the dominance of superpowers like the US and China, the role of emerging “middle powers,” and the implications for multinational corporations.

AI investments expose businesses to increasingly tense geopolitics

Sylvain Duranton, Global Leader at BCG X, noted the significant geopolitical risk companies face: “For large companies, close to half of them, 44%, have teams around the world, not just in one country where their headquarters are.”

Many of these businesses operate across numerous countries, making them vulnerable to differing regulations and sovereignty issues. “They’ve built their AI teams and ecosystem far before there was such tension around the world.”

Duranton also pointed to the stark imbalance in the AI supply race, particularly in investment.

Comparing the market capitalisation of tech companies, the US dwarfs Europe by a factor of 20 and the Asia Pacific region by five. Investment figures paint a similar picture, showing a “completely disproportionate” imbalance compared to the relative sizes of the economies.

This AI race is fuelled by massive investments in compute power, frontier models, and the emergence of lighter, open-weight models changing the competitive dynamic.   

Benchmarking national AI capabilities

Nikolaus Lang, Global Leader at the BCG Henderson Institute – BCG’s think tank – detailed the extensive research undertaken to benchmark national GenAI capabilities objectively.

The team analysed the “upstream of GenAI,” focusing on large language model (LLM) development and its six key enablers: capital, computing power, intellectual property, talent, data, and energy.

Using hard data like AI researcher numbers, patents, data centre capacity, and VC investment, they created a comparative analysis. Unsurprisingly, the analysis revealed the US and China as the clear AI frontrunners and maintain leads in geopolitics.

The US boasts the largest pool of AI specialists (around half a million), immense capital power ($303bn in VC funding, $212bn in tech R&D), and leading compute power (45 GW).

Lang highlighted America’s historical dominance, noting, “the US has been the largest producer of notable AI models with 67%” since 1950, a lead reflected in today’s LLM landscape. This strength is reinforced by “outsized capital power” and strategic restrictions on advanced AI chip access through frameworks like the US AI Diffusion Framework.   

China, the second AI superpower, shows particular strength in data—ranking highly in e-governance and mobile broadband subscriptions, alongside significant data centre capacity (20 GW) and capital power. 

Despite restricted access to the latest chips, Chinese LLMs are rapidly closing the gap with US models. Lang mentioned the emergence of models like DeepSpeech as evidence of this trend, achieved with smaller teams, fewer GPU hours, and previous-generation chips.

China’s progress is also fuelled by heavy investment in AI academic institutions (hosting 45 of the world’s top 100), a leading position in AI patent applications, and significant government-backed VC funding. Lang predicts “governments will play an important role in funding AI work going forward.”

The middle powers: Europe, Middle East, and Asia

Beyond the superpowers, several “middle powers” are carving out niches.

• EU: While trailing the US and China, the EU holds the third spot with significant data centre capacity (8 GW) and the world’s second-largest AI talent pool (275,000 specialists) when capabilities are combined. Europe also leads in top AI publications. Lang stressed the need for bundled capacities, suggesting AI, defence, and renewables are key areas for future EU momentum.
• Middle East (UAE & Saudi Arabia): These nations leverage strong capital power via sovereign wealth funds and competitively low electricity prices to attract talent and build compute power, aiming to become AI drivers “from scratch”. They show positive dynamics in attracting AI specialists and are climbing the ranks in AI publications.   
• Asia (Japan & South Korea): Leveraging strong existing tech ecosystems in hardware and gaming, these countries invest heavily in R&D (around $207bn combined by top tech firms). Government support, particularly in Japan, fosters both supply and demand. Local LLMs and strategic investments by companies like Samsung and SoftBank demonstrate significant activity.   
• Singapore: Singapore is boosting its AI ecosystem by focusing on talent upskilling programmes, supporting Southeast Asia’s first LLM, ensuring data centre capacity, and fostering adoption through initiatives like establishing AI centres of excellence.   

The geopolitics of generative AI: Strategy and sovereignty

The geopolitics of generative AI is being shaped by four clear dynamics: the US retains its lead, driven by an unrivalled tech ecosystem; China is rapidly closing the gap; middle powers face a strategic choice between building supply or accelerating adoption; and government funding is set to play a pivotal role, particularly as R&D costs climb and commoditisation sets in.

As geopolitical tensions mount, businesses are likely to diversify their GenAI supply chains to spread risk. The race ahead will be defined by how nations and companies navigate the intersection of innovation, policy, and resilience.

(Photo by Markus Krisetya)

See also: OpenAI counter-sues Elon Musk for attempts to ‘take down’ AI rival

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

The post BCG: Analysing the geopolitics of generative AI appeared first on AI News.

As the UK government prioritises AI within its “Plan for Change,” Kyle’s visit aims to strengthen the special relationship between the UK and the US that has been under particular strain in recent years.

Speaking at NVIDIA’s annual conference in San Jose on 20th March, Kyle outlined the government’s strategy to “rewire” the British economy around AI. This initiative seeks to distribute the benefits of AI-driven wealth creation beyond traditional hubs like Silicon Valley and London, empowering communities across the UK to embrace its opportunities.

Addressing an audience of business leaders, developers, and innovators, the Technology Secretary articulated his vision for leveraging AI and advanced technologies to tackle complex global challenges, positioning Britain as a beacon of innovation.

The UK is actively deploying AI to enhance public services and stimulate economic growth, a cornerstone of the government’s “Plan for Change.”

Kyle is now highlighting the significant potential of the UK’s AI sector, currently valued at over $92 billion and projected to exceed $1 trillion by 2035. This growth trajectory, according to the government, will position Britain as the second-leading AI nation in the democratic world—presenting a wealth of investment opportunities for US companies and financial institutions.

A central theme of Kyle’s message is the readiness of the UK to embrace AI investment, with a particular emphasis on transforming “the relics of economic eras past into the UK’s innovative AI Growth Zones.”

These “AI Growth Zones” are a key element of the government’s AI Opportunities Action Plan. They are strategically designated areas designed to rapidly attract large-scale AI investment through streamlined regulations and dedicated infrastructure.

AI Growth Zones, as the name suggests, are envisioned as vibrant hubs for AI development with a pipeline of new opportunities for companies to scale up and innovate. The Technology Secretary is actively encouraging investors to participate in this new form of partnership.

During his speech at the NVIDIA conference, Kyle is expected to detail how these Growth Zones – benefiting from access to substantial power connections and a planning system designed to expedite construction – will facilitate the development of a compute infrastructure on a scale that the UK “has never seen before.”

The government has already received numerous proposals from local leaders and industry stakeholders across the nation, demonstrating Britain’s eagerness to utilise AI to revitalise communities and drive economic growth throughout the country.

This initiative is expected to contribute to higher living standards across the UK, a key priority for the government over the next four years. The AI Growth Zones are intended to deliver the jobs, investment, and a thriving business environment necessary to improve the financial well-being of citizens and deliver on the “Plan for Change.”

At the NVIDIA conference, Kyle is expected to say: “In empty factories and abandoned mines, in derelict sites and unused power supplies, I see the places where we can begin to build a new economic model. A model completely rewired around the immense power of artificial intelligence.

“Where, faced with that power, the state is neither a blocker nor a shirker—but an agile, proactive partner. In Britain, we want to turn the relics of economic eras past into AI Growth Zones.”

As part of his visit to the US, Peter Kyle will also engage with prominent companies in the tech sector, including OpenAI, Anthropic, NVIDIA, and Vantage. His aim is to encourage more of these companies to establish a presence in the UK, positioning it as their “Silicon Valley home from home.”

Furthermore, the Technology Secretary is expected to state: “There is a real hunger for investment in Britain, and people who are optimistic about the future, and hopeful for the opportunities which AI will bring for them and their families. States owe it to their citizens to support it. Not through diktat or directive, but through partnership.”

The UK Prime Minister and the President of the US have placed AI at the forefront of the transatlantic relationship. During a visit to the White House last month, the Prime Minister confirmed that both nations are collaborating on a new economic deal with advanced technologies at its core.

Since unveiling its new AI strategy at the beginning of the year and assigning the technology a central role in delivering the government’s ‘Plan for Change,’ the UK has already witnessed significant investment from US companies seeking to establish AI bases in Britain.

Notable recent investments include a substantial £12 billion commitment from Vantage Data Centers to significantly expand Britain’s data infrastructure, which is projected to create approximately 11,500 jobs. Additionally, last month saw the UK Government formalise a partnership with Anthropic to enhance collaboration on leveraging AI to improve public services nationwide.

By strengthening these partnerships with leading US tech firms and investors, the UK’s AI sector is well-positioned for sustained growth as the government aims to continue to remove innovation barriers.

(Photo by Billy Joachim)

See also: OpenAI and Google call for US government action to secure AI lead

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

The post UK minister in US to pitch Britain as global AI investment hub appeared first on AI News.

In this article, we delve deeper into the key findings and implications—drawing on additional sources to enhance our understanding.

Thriving industry with significant growth

The study highlights the remarkable growth of the UK’s AI sector. With over 3,170 active AI companies, these firms have generated £10.6 billion in AI-related revenues and employed more than 50,000 people in AI-related roles. This significant contribution to GVA (Gross Value Added) underscores the sector’s transformative potential in driving the UK’s economic growth.

Mark Boost, CEO of Civo, said: “In a space that’s been dominated by US companies for too long, it’s promising to see the government now stepping up to help support the UK AI sector on the global stage.”

The study shows that AI activity is dispersed across various regions of the UK, with notable concentrations in London, the South East, and Scotland. This regional dispersion indicates a broad scope for the development of AI technology applications across different sectors and regions.

Investment and funding

Investment in the AI sector has been a key driver of growth. In 2022, £18.8 billion was secured in private investment since 2016, with investments made in 52 unique industry sectors compared to 35 sectors in 2016.

The government’s commitment to supporting AI is evident through significant investments. In 2022, the UK government unveiled a National AI Strategy and Action Plan—committing over £1.3 billion in support for the sector, complementing the £2.8 billion already invested.

However, as Boost cautions, “Major players like AWS are locking AI startups into their ecosystems with offerings like $500k cloud credits, ensuring that emerging companies start their journey reliant on their infrastructure. This not only hinders competition and promotes vendor lock-in but also risks stifling innovation across the broader UK AI ecosystem.”

Addressing bottlenecks

Despite the growth and investment, several bottlenecks must be addressed to fully harness the potential of AI:

• Infrastructure: The UK’s digital technology infrastructure is less advanced than many other countries. This bottleneck includes inadequate data centre infrastructure and a dependent supply of powerful GPU computer chips. Boost emphasises this concern, stating “It would be dangerous for the government to ignore the immense compute power that AI relies on. We need to consider where this power is coming from and the impact it’s having on both the already over-concentrated cloud market and the environment.”

• Commercial awareness: Many SMEs lack familiarity with digital technology. Almost a third (31%) of SMEs have yet to adopt the cloud, and nearly half (47%) do not currently use AI tools or applications.

• Skills shortage: Two-fifths of businesses struggle to find staff with good digital skills, including traditional digital roles like data analytics or IT. There is a rising need for workers with new AI-specific skills, such as prompt engineering, that will require retraining and upskilling opportunities.

To address these bottlenecks, the government has implemented several initiatives:

• Private sector investment: Microsoft has announced a £2.5 billion investment in AI skills, security, and data centre infrastructure, aiming to procure more than 20,000 of the most advanced GPUs by 2026.

• Government support: The government has invested £1.5 billion in computing capacity and committed to building three new supercomputers by 2025. This support aims to enhance the UK’s infrastructure to stay competitive in the AI market.

• Public sector integration: The UK Government Digital Service (GDS) is working to improve efficiency using predictive algorithms for future pension scheme behaviour. HMRC uses AI to help identify call centre priorities, demonstrating how AI solutions can address complex public sector challenges.

Future prospects and challenges

The future of the UK AI sector is both promising and challenging. While significant economic gains are predicted, including boosting GDP by £550 billion by 2035, delays in AI roll-out could cost the UK £150 billion over the same period. Ensuring a balanced approach between innovation and regulation will be crucial.

Boost emphasises the importance of data sovereignty and privacy: “Businesses have grown increasingly wary of how their data is collected, stored, and used by the likes of ChatGPT. The government has a real opportunity to enable the UK AI sector to offer viable alternatives.

“The forthcoming AI Action Plan will be another opportunity to identify how AI can drive economic growth and better support the UK tech sector.”

• AI Safety Summit: The AI Safety Summit at Bletchley Park highlighted the need for responsible AI development. The “Bletchley Declaration on AI Safety” emphasises the importance of ensuring AI tools are transparent, fair, and free from bias to maintain public trust and realise AI’s benefits in public services.

• Cybersecurity challenges: As AI systems handle sensitive or personal information, ensuring their security is paramount. This involves protecting against cyber threats, securing algorithms from manipulation, safeguarding data centres and hardware, and ensuring supply chain security.

The AI sector study underscores a thriving industry with significant growth potential. However, it also highlights several bottlenecks that must be addressed – infrastructure gaps, lack of commercial awareness, and skills shortages – to fully harness the sector’s potential.

(Photo by John Noonan)

See also: EU AI Act: Early prep could give businesses competitive edge

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

The post AI sector study: Record growth masks serious challenges appeared first on AI News.

The announcement, made during the International Investment Summit, was welcomed by Technology Secretary Peter Kyle as a “vote of confidence” in Britain’s approach to partnering with businesses to drive growth.

CyrusOne, ServiceNow, CloudHQ, and CoreWeave have all committed to substantial investments, bringing the total investment in UK data centres to over £25 billion since the current government took office. These new facilities will provide the UK with increased computing power and data storage capabilities, essential for training and deploying next-generation AI technologies.

“Tech leaders from all over the world are seeing Britain as the best place to invest with a thriving and stable market for data centres and AI development,” stated Kyle.

The largest single investment comes from Washington DC-based CloudHQ, which plans to develop a £1.9 billion data centre campus in Didcot, Oxfordshire. This hyper-scale facility is expected to create 1,500 jobs during construction and 100 permanent positions once operational.

ServiceNow has pledged £1.15 billion over the next five years to expand its UK operations. This investment will support AI development, expand data centres with Nvidia GPUs for local processing of LLM data, and grow the company’s UK workforce beyond its current 1,000 employees. ServiceNow also plans to offer new skills programmes to reach 240,000 UK learners.

ServiceNow’s AI platform is already utilised by 85% of Fortune 500 companies and more than half of the FTSE100. In the UK, the company works with organisations including BT Group, Aston Martin Aramco Formula One Team, and hundreds of public sector bodies such as the NHS and the Department for Work and Pensions.

Rachel Reeves, Chancellor of the Exchequer, commented: “This investment is a huge vote of confidence in the UK’s tech and AI sector, and is exactly the kind we want to see as we grow the economy. That’s what the International Investment Summit is all about too. Showing global investors and business that Britain is open for business.”

CyrusOne, a leading global data centre developer, announced plans to invest £2.5 billion in the UK over the coming years. Subject to planning permission, their projects are expected to be operational by Q4 2028 and create over 1,000 jobs.

AI hyperscaler CoreWeave confirmed an additional £750 million investment to support the next generation of AI cloud infrastructure, building on its £1 billion investment announced in May.

These investments follow recent commitments from other tech giants, including Blackstone’s £10 billion investment in the North East of England and Amazon Web Services’ plan to invest £8 billion in UK data centres over the next five years.

The UK government has been actively supporting the growth of data infrastructure and the broader tech sector. Last month, data centres were classified as ‘Critical National Infrastructure’ (CNI), providing the industry with greater government support. Additionally, the Tech Secretary appointed entrepreneur Matt Clifford to develop an AI Opportunities Action Plan, aimed at boosting AI adoption across the economy.

As part of the ongoing International Investment Summit, Prime Minister Keir Starmer is bringing together 300 industry leaders to catalyse investment in the UK. The summit will see discussions on how the UK can capitalise on emerging growth sectors including health tech, AI, clean energy, and creative industries.

Bill McDermott, Chairman and CEO of ServiceNow, said: “The UK is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities.

“Our investment accelerates the UK’s push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the UK are delivering a future where technology benefits everyone.”

The series of investments and government initiatives bolstering UK data infrastructure aims to secure the country’s leadership in AI and technology innovation within Europe, and reinforces it as an attractive destination for international tech companies seeking to expand their operations.

(Photo by Freddie Collins)

See also: King’s Business School: How AI is transforming problem-solving

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

The post UK secures £6.3B in data infrastructure investments appeared first on AI News.

The UK is Europe’s AI leader. Indeed, behind the US and China, the country’s tech sector overall has the third-highest amount of VC investment in the world – more than Germany and France combined – and has produced more than double the number of $1 billion tech firms than any other European country.

Gerard Grech, CEO of Tech Nation, said:

“As a nation uniquely positioned between two economic powerhouses, the US and the EU, we must harness innovative regulation that will enable us to propel ourselves as an international hub and leader for AI, quantum computing, and deep tech.

This is a critical step towards creating a distinctive, value-driven tech ecosystem in the UK, setting us apart from other tech hubs.”

To support British startups, an ‘AI Sandbox’ was announced by the chancellor. The sandbox features a number of initiatives designed to encourage AI research and investment.

Among them is a prize pot containing millions of pounds. £1 million will be up for grabs every year over the next decade for the best AI innovations created by teams and individuals.

Ludovico Lugnani, Technology Solicitor at BDB Pitmans, comments:

“Following yesterday’s news of Open AI’s launch of its upgraded GPT-4 chatbot, the Budget’s announcement as to the creation of an AI sandbox offers a promising outlook for the UK to speed up the arrival of AI products to market.

As part of this, particular emphasis should be placed on providing effective guidance as to the implications of copyright law on generative AI applications following the recent claim by Getty Images against Stability AI over breach of copyright.”

Elsewhere, £2.5 billion is being ploughed into advancing quantum computing. The powerful machines will enable a literal “quantum leap” in AI.

“The power that AI’s complex algorithms need can be provided by quantum computing,” the chancellor told the Commons.

£900 million is also being invested to create an exascale supercomputer that will be several times more powerful than the country’s biggest computers and advance not just AI research, but also science, healthcare, defense, weather modelling, and more.

“[The supercomputer] should be a huge boost to the UK’s ability to support cutting-edge research in areas requiring complex modelling and simulations, such as climate change, pharmaceutical development and hi-tech engineering,” commented Nick White, Partner at law firm Charles Russell Speechlys.

Only one exacomputer is currently known to exist. The computer, known as Frontier, is housed at the Oak Ridge National Laboratory in Tennessee, United States.

Other relevant announcements in the Spring Budget are targeted less at the AI industry specifically but aim to solidify the UK’s ranking as the second-best country after the US to invest and launch a business.

Under the ‘Full Expensing’ plans, companies investing in R&D and IT equipment to boost growth will benefit. Every pound a company spends on new IT equipment and machinery can be deducted in full from taxable profits.

The independent OBR (Office for Budget Responsibility) says the measure will increase business investment by three percent every year. The chancellor has committed to the measure for the next three years but intends to make it permanent “as soon as we can responsibly do so”.

Furthermore, smaller businesses will also have an increased annual investment allowance of up to £1 million. This means that 99 percent of SMEs will be able to deduct the full value of all their investments from taxable profits.

Matt Hammond, Founder of Talk Think Do, said:

“I wholly welcome the tax savings on IT investments, research and development as announced in today’s budget. In recent years, Talk Think Do has benefitted substantially from the R&D relief and as a result, we have been able to reinvest the extra cash directly into hiring sector-leading talent.  

R&D relief has helped to accelerate our expansion by over 750 percent in just four years. We are a successful example of how the relief has encouraged greater innovation in UK businesses and has unlocked significant growth opportunities. Today’s update benefits the economy at large and so I am glad to see this has been considered in the budget.”

The creation of 12 investment zones is set to further boost the UK’s tech credentials and spread opportunity across the country.

Eight have been announced in England and will be around research institutions in the East Midlands, Greater Manchester, Liverpool, North East, South Yorkshire, Tees Valley, West Midlands, and West Yorkshire.

Four more will be in Scotland, Wales, and Northern Ireland. These investment zones, based in the UK’s devolved administrations, will be announced by the end of the year.

Rikke Wichmann Bruun, CEO of MRM UK, commented:

“The announcement of investment into technology – including green technology – through the 12 investment zones presents a great opportunity for businesses and brands in the UK.

The ambition to transform Britain into the ‘next Silicon Valley’ also echoes new research conducted by our agency which found that Brits are the most optimistic about technology’s potential, in comparison to other Europeans.”

Cambridge, Oxford, and London – the so-called ‘golden triangle’ – are often seen as Europe’s closest rivals to Silicon Valley. Each city benefits from world-leading universities and research institutions that help to produce innovative startups and address global talent shortages.

The three cities are based in southern England and have historically benefited more from investment compared to the rest of the UK. Other cities – including Edinburgh and Manchester – have attracted increased investment in recent years, but it’s hoped the new zones will close the gap and unlock the potential across every region of the UK.

“Predictions that inflation will fall to 2.9 percent by the end of 2023 will be very welcome and there were a range of measures announced to boost the economy, including 12 new regional investment zones and a new policy to replace the ‘Super Deduction’,” said Stuart Haynes, Corporate and Commercial Partner at law firm Aaron & Partners.

“There are some fantastic tech innovators in this country and it’s pleasing to see the chancellor really get behind this sector to be a catalyst for economic growth.”

(Image Credit: Zara Farrar / HM Treasury under CC BY-NC-ND 2.0 license)

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The event is co-located with Digital Transformation Week.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

The post Editorial: UK puts AI at the centre of its Budget appeared first on AI News.

Around 2,009 AI companies are based in the UK, the AI capital of Europe. Renowned companies include Graphcore, BenevolentAI, Darktrace, Wayve, and DeepMind.

Last year saw a record investment of £6.6 billion flow into UK AI companies. In 2022 so far, £3.2 billion has been invested. Tech Nation notes that investment into AI firms is historically “loaded towards the end of the calendar year” and is on track to “at least equal” last year.

A record-setting Q2 was achieved in 2022 with £746.93 million invested, which could be a good sign for the rest of the year. However, the widely-condemned economic policies set out by the new UK Prime Minister Liz Truss and Chancellor Kwasi Kwarteng last month have caused turmoil in the national economy.

The IMF warned that the UK’s Mini Budget – which relies on the disproven idea of “trickle-down economics” – could have serious negative economic consequences. In particular, scrapping the higher tax rate for high earners led to Liz Truss being branded the “anti-Robin Hood” due to already struggling households footing the bill for tax cuts for the wealthy.

The backlash forced a U-turn on the policy, which helped the pound regain some of its strength against the dollar after plunging to its lowest value since 1985. A speech by Liz Truss this week on maintaining her course has put further downside pressure on the pound. Today, credit rating agency Fitch downgraded its outlook for the UK from stable to negative, following a similar move from its peer S&P last week.

Despite the economic damage caused by the UK Government’s policies, some welcome initiatives to support industries have continued.

Applied AI Programme

Tech Nation’s government-backed Applied AI programme was created to support and accelerate the UK’s highest-potential scaleups that are applying AI in practical areas to create real-world impact.

Ria Khan, Applied AI Programme Lead at Tech Nation, said: “We at Tech Nation are delighted to welcome a cohort of companies who are not afraid to break boundaries, transform and disrupt industries.

“I’m especially excited by the regional diversity of this cohort, with nearly three-quarters of the companies hailing from outside of London. It’s a genuine honour to support such a diverse range of future market leaders on their scaling journeys as they change our world for the better.” 

Applied AI is a six-month initiative that forms part of the Government’s AI Sector Deal that was announced in 2019 to realise the social and economic benefits of AI to improve people’s lives. Collectively, the companies joining Applied AI 4.0 have raised over £63 million in venture capital investment. 

Companies entering Applied AI 4.0 includes firms building a “medical metaverse” for hospitals and healthcare institutions with conversational AI-powered digital human avatars (Re:course AI), creating integrated Driver Monitoring Systems to prevent vehicle accidents (Fuell), enabling people to receive at-home personal training sessions from holograms of the world’s best athletes (MAGIC), and developing affordable robotics for sustainable agriculture (Antobot). 

Vanessa Viana, Global Managing Partner at Capital Lab Ventures and Applied AI 4.0 Judge, said: “The companies joining the Tech Nation Applied AI 4.0 represent the very best and most exciting of UK tech. Their highly prepared founders are applying AI in practical areas and solving real-life problems that will shape the future of various industries.

“Through its network of experts, the Applied AI growth programme is a unique invaluable asset to them. It supports the development of unfair advantages for their businesses and tackles the specific challenges related to scaling early-stage AI companies in the real world.”

Here are the 35 companies in Applied AI 4.0:

You can find out more about the Applied AI programme here.

(Photo by Ed Robertson on Unsplash)

The post UK AI sector achieved record funding in Q2 2022 appeared first on AI News.

DeepMind, Benevolent AI, Graphcore, Darktrace, Oxbotica, and Behavox are just some of the companies that have established the UK’s place as Europe’s leader in AI.

Joanna Shields, CEO of Benevolent AI and Co-Chair of Global Partnership on Artificial Intelligence (GPAI), commented: “A comprehensive strategy and vision for how we drive innovation, economic growth, job creation and social good. AI, successfully and ethically deployed, could become a foundational technology for the future growth of our economy and protecting our security and society.”

Demis Hassabis, Founder and CEO of DeepMind, said: “AI could deliver transformational benefits for the UK and the world—accelerating discoveries in science and unlocking progress on key challenges facing society.”

Data released by Tech Nation highlights the UK now has more than 1,300 AI companies – a 600 percent increase over the last decade – with a collective turnover of almost $2B and employing more than 30,000 people. The country is ranked third in the world for private venture capital investment into AI companies.

While “deep tech” investments are slowing or even decreasing in many countries and regions, it continues to increase substantially in the UK:

Data this week showed that global investors poured £13.5 billion into more than 1,400 UK private technology firms between January and June this year—more than Germany, France, and Israel combined.

However, not to become complacent, the UK launched its 10-year strategy on the third day of London Tech Week. In addition to setting out how it plans to continue developing AI technologies, it also includes plans for a whitepaper on AI regulation to ensure leadership in safe and ethical deployments.

Chris Philp, DCMS Minister, said:

“Artificial intelligence technologies generate billions for the economy and improve our lives. They power the technology we use on a daily basis and help save lives through better disease diagnosis and drug discovery.

The UK already punches above its weight internationally and we are ranked third in the world behind the USA and China in the list of top countries for AI.

Today, we’re laying the foundations for the next ten years’ growth with a strategy to help us seize the potential of artificial intelligence and play a leading role in shaping the way the world governs it.”

Among the initiatives is the creation of a new National AI Research and Innovation program that will enhance coordination and collaboration between researchers.

Another program focuses on increasing AI development outside of London and Southeast England, where the vast majority of the country’s related efforts are concentrated.

Further government investment may also be allocated to incentivise the adoption of AI technologies in industries that are currently not taking full advantage, such as farming and energy production.

Other plans include:

• Publishing a joint review with UKRI into boosting the availability and capacity of computing power for UK researchers and organisations.
• Launch a consultation on copyright and patents for AI through the Intellectual Property Office (IPO).
• Trial an AI Standards Hub to coordinate UK engagement in establishing global rules and working with The Alan Turing Institute to update guidance on AI ethics and safety.

Professor Sir Adrian Smith, Chief Executive of The Alan Turing Institute, said:

“We are proud of creating a dynamic, collaborative community of diverse researchers and are growing world-leading capabilities in responsible, safe, ethical and inclusive AI research and innovation.

These technologies are already improving lives and their prominence continues to grow in our society. To ensure they go from strength to strength it’s critical we foster a sustainable, inclusive, multidisciplinary UK AI ecosystem that attracts people from all walks of life and allows them to flourish.”

While the AI strategy has been broadly welcomed, there is some concern that it doesn’t appear to go far enough in addressing some impending societal issues—especially regarding the impact on people’s jobs and livelihoods.

James McLeod, VP of EMEA at Faethm AI, commented:

“AI is as much a social revolution as it is technological. While a targeted AI strategy is absolutely welcome, it is debatable if it addresses the human changes needed to turn the UK into a fully-fledged, AI-driven economy. Yes, it will create the right foundations and frameworks to push AI forward and help the country take leadership in the space, but we mustn’t forget how workforces in many sectors of the economy will be affected by the innovations it drives.

Technology is already automating and augmenting a huge range of repetitive tasks that don’t require human skills, and will inevitably take on even more in future. So, as well as helping AI and automation create jobs, we also need to think about those who could be left behind or displaced by its introduction, both now and in the coming years.

What employers need is the means to retain, retrain and redeploy employees so technology doesn’t simply replace human workers, but complements them. Targeted training programmes that help citizens develop skills that enhance the human characteristics of work, instead of ones that will become redundant in just a few years’ time as AI continues to evolve, are critical.

If the UK wants to create a future of work that is fair and sustainable, while pursuing a position as a global leader in technology and innovation, this is that chance.”

Just a week after the announcement of AUKUS to counter China’s increasingly aggressive behaviour, the launch of the AI strategy feels like it may also be in part to keep pace with the country’s increasing capabilities in the field.

The US currently files the most AI patent applications, filing around 50,000 between 1998 and 2017. China was not far behind, having filed around 41,000 over the same period.

In March, former Google CEO Eric Schmidt said that China could soon replace the US as the world’s leading AI superpower and warned that has serious implications.

“America is not prepared to defend or compete in the AI era,” said Schmidt, alongside experts in a National Security Commission on AI. “This is the tough reality we must face.”

(Photo by S Migaj on Unsplash)

Find out more about Digital Transformation Week North America, taking place on 9-10 November 2021, a virtual event and conference exploring advanced DTX strategies for a ‘digital everything’ world.

The post UK sets out its 10-year plan to remain a global AI superpower appeared first on AI News.

Data from Dealroom was used for the State of European Tech report. Dealroom defines deep tech as 16 fields: Artificial Intelligence, Machine Learning, Big Data, Augmented Reality, Virtual Reality, Drones, Autonomous Driving, Blockchain, Nanotech, Robotics, Internet of Things, 3D Technology, Computer Vision, Connected Devices, Sensors Technology, and Recognition Technology (NLP, image, video, text, speech recognition).

In 2019, there was $10.2 billion capital invested in European deep tech. In 2020, that dropped to $8.9 billion:

I think it’s fair to say that 2020 has been a tough year for most people and businesses. Economic uncertainty – not just from COVID-19 but also trade wars, Brexit, and a rather tumultuous US presidential election – has naturally led to fewer investments and people tightening their wallets.

For just one example, innovative satellite firm OneWeb was forced to declare bankruptcy earlier this year after crucial funding it was close to securing was pulled during the peak of the pandemic. Fortunately, OneWeb was saved following an acquisition by the UK government and Bharti Global—but not all companies have been so fortunate.

Many European businesses will now be watching the close-to-collapse Brexit talks with hope that a deal can yet be salvaged to limit the shock to supply lines, prevent disruption to Europe’s leading financial hub, and help to build a friendly relationship going forward with a continued exchange of ideas and talent rather than years of bitterness and resentment.

The report shows the UK has retained its significant lead in European tech investment and startups this year:

Despite the uncertainties, the UK looks unlikely to lose its position as the hub of European technology anytime soon.

Investments in European tech as a whole should bounce back – along with the rest of the world – in 2021, with promising COVID-19 vaccines rolling out and hopefully some calm in geopolitics.

94 percent of survey respondents for the report stated they have either increased or maintained their appetite to invest in the European venture asset class. Furthermore, a record number of US institutions have participated in more than one investment round in Europe this year—up 36% since 2016.

You can find a full copy of the State of European Tech report here.

(Photo by Mayank Dhanawade on Unsplash)

Interested in hearing industry leaders discuss subjects like this? Attend the co-located 5G Expo, IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London, and Amsterdam.

The post State of European Tech: Investment in ‘deep tech’ like AI drops 13% appeared first on AI News.

The fact you can add ‘AI’, ‘IoT’, or ‘blockchain’ to your company name/description and it will skyrocket your valuation has become something of a running joke in the industry. Shares in Long Island Iced Tea, for example, infamously shot up almost 200 percent after changing its parent company name to ‘Long Blockchain Corp.’

European AI startups have been similarly cashing in, according to research by London-based investment firm MMC Ventures.

MMC Ventures were unable to find any evidence of AI applications at 40 percent of 2,830 AI startups in Europe. Many, of course, do have plans to develop AI in the future.

‘Artificial intelligence’ has been used to define many things including the automation of tasks, machine learning algorithms, and complex neural networks. This has given businesses a broad scope to claim they’re using AI in some respect.

European venture capital groups pay attention when a startup claims to be using AI. Funding is between 15-50 percent higher than a typical software startup, according to MMC Ventures’ research.

However, the number of startups actually using AI is rapidly increasing. One in 12 are now using AI compared to one in 50 six years ago. 12 percent of large companies have started using AI in their business compared to just four percent the prior year.

The UK is the powerhouse of European AI, with a third of the continent’s startups. According to data from Capital IQ, European investors have doubled their UK investment over the past year.

Interested in hearing industry leaders discuss subjects like this and their use cases? Attend the co-located AI & Big Data Expo events with upcoming shows in Silicon Valley, London, and Amsterdam to learn more. Co-located with the IoT Tech Expo, Blockchain Expo, and Cyber Security & Cloud Expo.

The post Almost half of Europe’s AI startups have no actual AI appeared first on AI News.

Venture capital firms invested a record $1.3bn (£998m) in UK-based AI companies last year.

The figures are provided by Dealroom and show a fourfold increase in five years. A couple of notable rounds includes $200 million for Graphcore in your humble editor’s hometown of Bristol, and $50 million for what feels like my second home of London.

For comparative purposes, French AI startups raised $400 million last year, while Germany raised $300 million.

But the UK is not slowing down. Business Secretary Greg Clark and Digital Secretary Jeremy Wright announced today £200 million to establish 16 new centres and deliver 1,000 new PhDs to ensure the UK leads the global revolution in AI.

Business Secretary Greg Clark said:

“The UK has long been a nation of innovators and today’s package of AI skills and talent investment will help nurture leading UK and international talent to ensure we retain our world-beating reputation in research and development.

Artificial intelligence has great potential to drive up productivity and enhance every industry throughout our economy, from more effective disease diagnosis to building smart homes. Today’s announcement is our modern Industrial Strategy in action, investing in skills and talent to drive high skilled jobs, growth and productivity across the UK.”

A £100 million investment will support these PhD students in using AI to improve healthcare, tackle climate change, and create new commercial opportunities. Over 300 partners are involved including AstraZeneca, Google, Rolls-Royce, and NHS trusts.

The private companies are investing a total of £78 million in cash or in-kind contributions, while the universities are committing a further £23 million. This brings up the investment to over £200 million.

Digital Secretary Jeremy Wright commented:

“The UK is not only the birthplace to the father of artificial intelligence, Alan Turing, but we are leading the way on work to ensure AI innovation has ethics at its core. We want to keep up this momentum and cement our reputation as pioneers in AI.

Working with world-class academic institutions and industry we will be able to train the next generation of top-tier AI talent and maintain the UK’s reputation as a trailblazer in emerging technologies.”

Despite the national doom and gloom over Brexit, foreign investment keeps flowing into talented startups which may become the next DeepMind.

Interested in hearing industry leaders discuss subjects like this and their use cases? Attend the co-located AI & Big Data Expo events with upcoming shows in Silicon Valley, London, and Amsterdam to learn more. Co-located with the IoT Tech Expo, Blockchain Expo, and Cyber Security & Cloud Expo.

The post UK investment in AI startups nears the rest of Europe combined appeared first on AI News.

The chip giant is specifically looking at startups building on-device AI technologies. We’re increasingly seeing NPUs (Neural Processing Units) debuting in the latest devices, so it’s little surprise to see Qualcomm seeking to fund technologies which may provide an edge.

Steve Mollenkopf, CEO of Qualcomm Incorporated, said:

“At Qualcomm, we invent breakthrough technologies that transform how the world connects, computes, and communicates. For over a decade, Qualcomm has been investing in the future of machine learning.

As a pioneer of on-device AI, we strongly believe intelligence is moving from the cloud to the edge. Qualcomm’s AI strategy couples leading 5G connectivity with our R&D, fueling AI to transform industries, business models, and experiences.”

Qualcomm has made AI investments through its evergreen venture fund in the past, including in China’s facial recognition darling SenseTime.

SenseTime became the most funded AI startup in the world earlier this year, with a reported valuation of over $3 billion.

The company’s facial recognition and video analysis technologies are used by the Chinese government and the company is aiming for its ‘Viper’ system to be able to process and analyse over 100,000 simultaneous real-time streams from traffic cameras, ATMs, and more to automatically tag and keep track of individuals.

Some other AI investments made by Qualcomm include General Motors-owned autonomous driving firm Cruise, and Tel Aviv-based AnyVision who are developing face, body, and object recognition technology.

 Interested in hearing industry leaders discuss subjects like this and their use cases? Attend the co-located AI & Big Data Expo events with upcoming shows in Silicon Valley, London, and Amsterdam to learn more. Co-located with the IoT Tech Expo, Blockchain Expo, and Cyber Security & Cloud Expo.

The post Qualcomm is setting aside $100 million for AI venture investments appeared first on AI News.