On 13 January 2025, the UK government introduced the AI Opportunities Action Plan designed to harness the transformative potential of artificial intelligence (AI) across various sectors, with an aim to make the country an "AI superpower". 

As we enter the implementation phase of the initial recommendations we take a closer look at what does the plan say and what does it mean for business? 

The action plan is structured around three pillars, each with a specific goal:

1. Lay the foundations to enable AI: This section focuses on sustained investment in computational power and AI infrastructure, driving the creation of high-skilled jobs, increasing investment opportunities, and fostering the growth of AI-based service businesses. Key to this will be access to high-quality data for fuelling "frontier AI progress and high-quality AI applications" while "enabling safe and trusted AI development and adoption through regulation, safety, and assurance".
2. Changing lives by embracing AI: The action plan outlines strategies for scaling AI deployment across the public sector, positioning it as the "largest customer and as a market shaper". Specific goals include increasing the efficiency of public sector employees through AI assistants, streamlining report and form drafting with AI tools, leveraging AI for healthcare diagnostics, and improving threat detection and anomaly identification. This section is pivotal in achieving the government's broader transformative agenda, including the five missions set out in the Plan for Change.
3. Secure the future of homegrown AI: Building on the above two pillars, this section focuses on positioning the UK as "national champions at the frontier of economically and strategically important capabilities". It includes the establishment of a new unit, UK Sovereign AI, aimed at promoting public-private partnerships to maximise the UK's position in frontier AI.

Regulatory Approach

The action plan reinforces the UK's commitment to a pro-innovation regulatory approach, supporting AI growth and removing any deterrents. The plan includes the following requirements for regulators:

• Publication of annual reports demonstrating how AI innovation has been facilitated within respective sectors.
• Advancing AI in priority sectors by collaborating with the government and promoting AI initiatives such as regulatory sandboxes.
• Ensuring sponsor departments focus on fostering safe AI innovation practices within strategic guidance to regulators, including empowering the Regulatory Innovation Office to drive regulatory innovation for technologies.
• Liaising with the government to identify needs required to scale up AI capabilities.
• Aligning AI governance frameworks with the proposed Data (Use and Access) Bill.

Unlike the EU, the UK government continues to express little appetite for introducing AI-specific legislation and prefers leveraging existing legislation (across various areas such as data protection, cyber security, employment, online safety etc.) to address AI concerns. Several regulators – including the ICO, CMA, FCA, and Ofcom – have outlined their strategies for AI regulation to ensure innovation is not stifled while safeguarding rights and freedoms.

Top Tips

Organisations who are using AI based systems are encouraged to: 

1. Invest in AI infrastructure: Ensure robust computing power and secure data storage.
2. Consider locating AI operations within growth zones: This will provide access to infrastructure and support.
3. Utilise data effectively: Develop strategies for ethical and secure data use.
4. Enhance AI skills: Focus on training, upskilling and retaining AI talent.
5. Implement ethical AI practices: Ensure AI systems are designed and used ethically. Develop guidelines and frameworks to address biases, privacy concerns, and transparency, fairness and trust in AI applications. 
6. Explore government programmes and funding opportunities: Accelerating AI projects and capabilities.