The new Labour government has axed £1.3bn of funding for technology and artificial intelligence (AI) research, development as it looks to balance the economy.
The Department for Science, Innovation & Technology said no new funding for the programmes had been allocated in the previous government’s spending plans, and therefore will not be taken forward.
The funding plans were only revealed within the past 12 months and included £800m for an exascale supercomputer at Edinburgh University, as well as £500m for AI Research Resource which was set up to fund computing for AI.
In a statement, DSIT said: “The government is taking difficult and necessary spending decisions across all departments in the face of billions of pounds of underfunded commitments. This is essential to restore economic stability and deliver our national mission for growth.”
Tech experts have described the news as a major setback experts in the UK’s aspirations to be a global technology superpower.
Scott Lewis, SVP of Ataccama, said: “Boosting AI investment should be a top priority for government. Technology advancement is fuelling data creation in all areas of everyday life, in business and academia, and that data can provide valuable insights to help solve challenges and drive innovation.”
Edinburgh University had already splashed out £31m to build housing for its planned supercomputer. It would have been 50 times faster than any current computer in the UK.
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Fraser Stewart, chief commercial officer for Lyfeguard: “The decision to cancel funding for key tech and AI projects is a setback for the UK’s global technology superpower ambitions, stifling the next innovations that could have been key to business and economic growth.
“Restricting investment may limit the benefits to people and businesses moving forward so hopefully this is not the start of a trend of tech funding cuts.
“It’s important that the UK keeps innovating, enhancing these efficiencies even more and exploring new ways to benefit from AI in a safe and trustworthy manner.
“The government should be collaborating with educators and industry to roadmap the future of AI development, working through joint projects, innovations and investment plans to ensure the UK remains at the forefront of the AI race.”
Libero Raspa, director of adesso UK, commented: “The cancellation of funding for key tech and AI projects is a significant setback for the industry.
“The rapid rise of AI adoption requires substantial investment and without this, companies may struggle to innovate and fall behind international counterparts.
“Technology, particularly AI, should be central to enhancing efficiency, and investment is crucial for successful tech projects that boost productivity and growth nationwide.
“The government should be collaborating with academia and industry, working with partners and AI experts that are leading AI projects from concepts to implementation to create solutions to key problems, boosting efficiency and driving growth while minimising risks.”
