AI Warning: UK Must Act Fast or Fall Behind, Says Blair Institute
The UK’s future in artificial intelligence hangs in the balance. That’s the stark message from a fresh report by the Tony Blair Institute for Global Change (TBI), which urges ministers to radically transform the country’s AI infrastructure, and fast.
Despite a £1 billion government pledge and a national action plan already in motion, the report makes clear: Britain is nowhere near ready. While global heavyweights like the US, China, Saudi Arabia, and the UAE pour billions into next-gen AI systems, the UK risks slipping further down the ranks.
“Britain must build, the country’s AI infrastructure situation is dire, and the consequences matter,” states Keegan McBride, senior policy advisor at the TBI and author of the report.
The core issue? Infrastructure. Planning delays, grid bottlenecks, and spiralling energy prices are stalling critical data centre projects. The report warns that without urgent action, Britain will remain reliant on overseas computer power, an economic and security risk.
Just 3% of the world’s computing power resides in the UK. The US holds a staggering 75%.
Jamie Hutton, CTO of Quantexa, a British AI analytics leader, stressed the stakes: “If the UK is to lead on the global AI stage, not just as a consumer of innovation, but as a creator and exporter of transformative technology, it must invest now in the digital backbone of that future.”
He added: “Building the infrastructure for AI isn’t optional, it’s the key to unlocking long-term prosperity, national resilience and global competitiveness.”
Earlier this year, the government outlined ambitious plans: AI growth zones, faster planning approvals, and improved energy grid access. But the TBI report says it’s all too slow, too little.
This concern comes at a time when AI’s growing role in the UK job market is already triggering a noticeable shift, with automation gradually impacting hiring patterns and workforce demand across key sectors.
“At the current construction pace, the country is unlikely to meet its 2030 target of 6GW of AI-ready capacity on UK soil,” the report says.
Instead of trying to match the US or China in raw compute, the Institute suggests the UK should focus on AI deployment. That means applying AI across core sectors, health, defence, education, and science, to drive productivity and keep Britain competitive.
To get there, sweeping reforms are needed. The report proposes a dedicated “AI Infrastructure Delivery Group”, modelled on the highly effective Covid-era Vaccine Taskforce.
It would bring together civil servants, energy experts, and regulators like Ofgem and the National Grid under one roof.
The Institute is also calling for the rapid approval of data centre builds and new nuclear energy projects to power them.
Prime Minister Keir Starmer has voiced lofty ambitions, stating in June that he wants the UK to be a “maker” of AI compute, not just a “taker”.
On the same day, Nvidia’s CEO, Jensen Huang, pointed out the UK’s glaring lack of homegrown AI infrastructure, despite its booming AI ecosystem.
The bottom line? Talk is cheap. Without swift and bold action, Britain’s AI aspirations may remain just that, aspirations.
And in what TBI calls “the most important economic race of the 21st century”, second place might not be good enough.
