BudgetMar 6 2024

Budget 2024: Govt will ‘embrace opportunities’ presented by AI

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Budget 2024: Govt will ‘embrace opportunities’ presented by AI
The government intends to “transform” public services through productivity initiatives, such as greater use of AI (Photo: Tara Winstead/Pexels)

The government will “embrace the opportunities” presented by making greater use of cutting-edge technology, such as AI, across the public sector.

In the Budget, chancellor Jeremy Hunt said the government intends to “transform” public services through productivity initiatives, such as greater use of AI.

As part of this, Hunt pledged to more than double the size of the AI incubator team, to ensure the UK government has in-house expertise of the most talented technology professionals in the UK.

He also committed £34mn to expand the Public Service Fraud Authority by deploying AI to help combat fraud across the public sector, and committed £17mn to accelerate DWP’s digital transformation, replacing paper-based processes with online services.

Additionally, the government will commit £14mn for public sector research and innovation of infrastructure, including funding to develop the “next generation” of health and security technologies.

Informatica GVP and head of sales EMEA North, Greg Hanson, said: “It’s a smart move to keep Britain’s public services at the forefront of innovation in areas like AI, data, and research & development.”

Hanson explained that competition to become a technology and AI leader is “fierce” and the government clearly wants to lead by example.

“It’s reassuring to see the government has recognised the potential of new technologies like automation and AI to help unlock growth, boost productivity, and improve the way public services are delivered,” he added.

SMEs

The use of technology, and specifically AI, was not limited to the public sector however as Hunt also announced that, later this year, the government will set out how access to the UK’s “cutting edge” public compute facilities will be managed.

This will allow both researchers and innovative companies to get the computing power they need to develop AI products.

Additionally, the government announced a £7.4mn upskilling fund pilot which it said will help small and medium-sized enterprises develop "AI skills of the future".

This pilot is intended to complement the SME Digital Adoption Taskforce, which the government will be launching shortly.

This taskforce will investigate how best to support the adoption of digital technology by SMEs to boost their productivity. 

The government also announced an investment of £100mn in the Alan Turing Institute, whose research drives economic and scientific advancements, over the next five years.

tom.dunstan@ft.com

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