Britain's economy may be weaker outside the EU, but its AI sector is booming, with over $14.5bn in venture capital raised this year alone. The country has 33 AI unicorns, more than France, Germany, and the Netherlands combined.
However, Brexit has created challenges for ambitious AI firms, including steep visa fees and regulatory hurdles. The British government has launched a global-talent scheme to help reduce these frictions.
Despite its advantages, Britain lags behind the US in AI investment, with the four big American hyperscalers expected to spend $700bn on capital investment in 2026. Britain's £6bn pledged for AI infrastructure is a fraction of this amount.
However, Britain still has immense opportunities in AI, with many of the fundamental science behind today's models done by British researchers. The country is home to a clutch of promising AI firms, including Wayve and DeepMind.
To truly prosper in the world of AI, Britain must think bigger, fixing the planning system, upgrading the grid, and investing in AI infrastructure. The government may need to stump up more than the £1.1bn it recently pledged for AI hardware.
