Not long ago, the UK's new Labour government pledged to place artificial intelligence (AI) at the heart of its agenda. However, they have now shelved $170 million earmarked for AI and technology projects, aiming to balance the national budget.
The new government claims this is because they inherited a financial mess from the Conservatives, with the new Chancellor of the Exchequer, Rachel Reeves, even accusing the previous government of "covering up" a $27.9 billion public spending gap.
Image source: Picture generated by AI, authorized service provider Midjourney
In this fiscal tightening, many AI projects have been forced to make way. Most notably, a $1 billion exascale supercomputer project in Edinburgh, Scotland. This supercomputer was set to become one of the few in the world, of great significance to researchers. Now, its future is uncertain, with Sir Peter Mathieson, Vice-Chancellor of the University of Edinburgh, seeking an urgent meeting with the Science Minister.
Additionally, $633 million originally intended for providing computing resources for AI research has also been canceled. The government defends this by saying they are only cutting "unfunded commitments."
Despite this, the Labour government has not abandoned AI. They recently launched the "AI Opportunities Action Plan," a roadmap aimed at accelerating the use of AI to improve the UK's services sector. Matt Clifford, founder of the startup accelerator Entrepreneur First, has been appointed by the government to lead this project.
The Department for Science, Innovation and Technology (DSIT) has also launched an AI Opportunities division responsible for implementing the recommendations in the action plan. Science Minister Peter Kyle said: "We will collectively harness AI to drive national productivity and economic growth, making everyone better off."
However, reactions to the news of funding cuts have been mixed. Some see it as disappointing for a country that invented the computer and software, while others view it as a "good move" that could help the AI field "pause and lose some noise."
Toby Cubitt, co-founder and CTO of Phasecraft, said the uncertainty over funding could impact the UK's tech industry, emphasizing: "Growth and innovation, not austerity, are the solutions."
Key Points:
🏦 **Funding Shelved**: The new government has shelved $170 million for AI projects to balance the budget.
🔧 **Supercomputer Project in Limbo**: The $1 billion exascale supercomputer project's future is uncertain.
📉 **Continued AI Policy**: Despite funding cuts, the new government still plans to place AI at the core of improving public services.