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Forbes
22-07-2025
- Business
- Forbes
UK Announces Deal With OpenAI To Augment Public Services And AI Power
UK and OpenAI Announce a new MOU OpenAI and the United Kingdom's Department for Science, Innovation and Technology signed a joint memorandum of understanding yesterday that sets out an ambitious joint plan to put OpenAI's models to work in day-to-day government tasks, to build new computing hubs on British soil, and to share security know-how between company engineers and the UK's AI Safety Institute. The agreement is voluntary and doesn't obligate the UK in any exclusive manner, yet the commitments are concrete: both sides want pilot projects running inside the civil service within the next twelve months. Details of the Joint MOU The memorandum identifies four key areas of joint innovation. It frames AI as a tool to raise productivity, speed discovery and tackle social problems, provided the public is involved so trust grows alongside capability. The partners will look for concrete deployments of advanced models across government and business, giving civil servants, small firms and start-ups new ways to navigate rules, draft documents and solve hard problems in areas such as justice, defence and education. To run those models at scale, they will explore UK-based data-centre capacity, including possible 'AI Growth Zones,' so critical workloads remain onshore and available when demand peaks. Finally, the deal deepens technical information-sharing with the UK AI Security Institute, creating a feedback loop that tracks emerging capabilities and risks and co-designs safeguards to protect the public and democratic norms. OpenAI also plans to enlarge its London office, currently at more than 100 staff, to house research and customer-support AI CEO Sam Altman has long been interested in the UK as a region for AI development because of the UK's long history in AI research, most notably starting with Alan Turing. 'AI will be fundamental in driving the change we need to see across the country, whether that's in fixing the NHS, breaking down barriers to opportunity or driving economic growth,' said UK Technology Secretary, Peter Kyle. 'That's why we need to make sure Britain is front and centre when it comes to developing and deploying AI, so we can make sure it works for us.' Altman echoed the ambition, calling AI 'a core technology for nation building' and urging Britain to move from planning to delivery. The Increasing Pace of Governmental AI Adoption and Funding Universities in London, Cambridge and Oxford supply a steady stream of machine-learning talent. Since the Bletchley Park summit in 2023, the UK has positioned itself as a broker of global safety standards, giving investors a sense of legal stability. And with a sluggish economy, ministers need a credible growth story; large-scale automation of paperwork is an easy pitch to voters. The UK offers scientists clear rules and public money. The UK government has already promised up to £500 million for domestic compute clusters and is reviewing bids for 'AI Growth Zones'. Three factors explain the timing. The UK is not alone in its AI ambitions. France has funnelled billions into a joint venture with Mistral AI and Nvidia, while Germany is courting Anthropic after its own memorandum with DSIT in February. The UK believes its head start with OpenAI, still the best-known brand in generative AI, gives it an edge in landing commercial spin-offs and high-paid jobs. Risks that could derail the plan Kyle knows that any mis-step, such as an AI bot giving faulty benefit advice, could sink trust. That is why the memorandum pairs deployment with security research and reserves the right for civil-service experts to veto outputs that look unreliable. The UK has had a long history with AI, and the risks posed by lack of progress. Notably, the infamous Lighthill report in 1973 was widely credited with contributing the first 'AI Winter', a marked period of decline of interest and funding in AI. As such, careful political consideration of AI is key to ensuring ongoing support. Public-sector unions may resist widespread automation, arguing that AI oversight creates as much work as it saves. Likewise there is widespread concern of vendor lock-in with the deal with OpenAI. By insisting on locally owned data centres and keeping the MOU open to additional suppliers, ministers hope to avoid a repeat of earlier cloud contracts that left sensitive workloads offshore and pricy relationships locked in. Finally, a single headline error, such as a chatbot delivering wrong tax guidance, for instance, could spark calls for a pause. However, the benefits currently outweigh the risks. No department stands to gain more than the UK's National Health Service, burdened by a record elective-care backlog. Internal modelling seen by officials suggests that automated triage and note-summarisation tools could return thousands of clinical hours each week. If early pilots succeed, hospitals in Manchester and Bristol will be next in line. And OpenAI is not new to the UK government. A chatbot for small businesses has been live for months, and an internal assistant nicknamed 'Humphrey' now drafts meeting notes and triages overflowing inboxes. Another tool, 'Consult,' sorts thousands of public submissions in minutes, freeing policy teams for higher-level work. The new agreement aims to lift these trials out of the margins and weave them more fully into the fabric of government. What's Next Joint project teams will start by mapping use-cases in justice, defence and social care. They must clear privacy impact assessments before live trials begin. If those trials shave measurable hours off routine tasks, the Treasury plans to set aside money in the 2026 Autumn Statement for a phased rollout. UK's agreement with OpenAI is an experiment in modern statecraft. It tests whether governmental organizations can deploy privately built, high-end models while keeping control of data and infrastructure. Success would mean delivering the promised benefits while avoiding the significant risks. Failure would reinforce arguments that large language models remain better at publicity than at public service.
Business News Wales
22-07-2025
- Business
- Business News Wales
Strategy Without Substance - The Hidden Cost of Missed Priorities
This article has been co-authored and researched by Frank Holmes, Partner Gambit Corporate Finance and University of Bath student Ben Greenhaf. Whether we are citizens, employees, scholars or consumers, our daily lives are heavily shaped by strategies from public, private, academic and governmental institutions. Yet, many of these strategies are rooted in pre-set mission statements, off-the-shelf management models, or narrow organisational agendas. They often fail to identify the root causes of the problems they aim to solve, leading instead to short-term fixes that allow inefficiencies to return time and again. At its core, strategy should be a blend of policy and action aimed at solving major challenges or unlocking new opportunities. For a strategy to succeed, it must identify the 'crux', the central issue that appears solvable and then design a clear plan to remove obstacles to its resolution. Recently, the UK government launched a range of initiatives designed to stimulate growth. These include the 10-year Industrial Strategy 2025, the upcoming Spending Review, Investment and Industrial Zones, AI Growth Zones, and a Strategic Sites Accelerator designed to address stagnant productivity. These initiatives are emerging at a time of record national debt, an expanding population of economically inactive individuals, and widespread infrastructure vulnerability. The UK's economic decline predates recent shocks like the COVID-19 pandemic and the war in Ukraine. It can be traced back to Brexit, the 2008 financial crash, and even the end of the 1990s ICT boom. Weak demand, volatile liquidity, and persistent uncertainty have choked economic momentum. While technology has steadily progressed, productivity has remained flat, with low levels of R&D investment and a general reluctance among businesses to commit to capital improvements or workforce development. Instead, many firms have responded to rising demand by simply increasing their labour inputs, rather than by improving efficiency. This stagnation has reached a point where the Bank of England is now warning that slack in the labour market, fewer people being hired or remaining in work, may justify lowering interest rates. All signs point to one inescapable conclusion: we must repurpose human capital and embrace digital efficiency if we are to revive productivity. But this won't be painless. The transition will bring job displacement due to automation and artificial intelligence, and it will require significant investment in skills, training and social infrastructure to support those affected. Currently, only around 15% of UK firms (approximately 432,000) use AI. Yet, research from St Andrews Business School suggests AI adoption could boost SME productivity by up to 133%. The challenge is that the benefits will not arrive overnight. As with the adoption of computers in the 1960s, which only produced significant productivity gains from the mid-1990s onwards, there will be a lag. But the long-term gains could be substantial, with researchers estimating digitalisation could push UK productivity growth to 2.8% annually over the next decade. In the meantime, governments and public institutions must focus their efforts. They need to promote procurement that supports innovation, invest directly in R&D and skills, revise outdated competition rules, remove regulatory barriers, and stimulate demand through targeted fiscal policy. Infrastructure gaps, especially in housing and energy, must be addressed with urgency, and businesses must be incentivised to adopt net zero commitments. While these aims are reflected in various government announcements, such as energy bill subsidies, the true test lies in delivery. Turning policy into real outcomes is where success or failure will be determined. Geopolitical instability reinforces the need to avoid deindustrialisation and instead push for national security through self-sufficiency. Manufacturing continues to be a vital pillar of the UK economy, powering supply chains and contributing significantly to research and development. As factories evolve with greater automation and digitalisation, the demand for a new breed of skilled workers, technicians, engineers, and digital specialists is accelerating. However, nearly half (47%) of employers in advanced engineering report that their workforce lacks the necessary IT capabilities. Despite this challenge, the UK possesses world-class design talent and a rich vein of intellectual property and brand development. These strengths not only enhance the competitiveness of our manufacturing sector but also offer global open-source and licensing opportunities—with minimal need for heavy capital investment. With larger firms employing only 40% of the workforce, it's clear that widespread training must reach smaller enterprises too if we're to unlock meaningful productivity gains. The green energy transition adds further urgency. The UK must be able to manufacture its own wind turbines, modular nuclear components, and grid infrastructure if it wants to avoid supply chain disruption and remain globally competitive. There's a well-worn phrase: we have godlike technology but childlike attention spans. Despite astonishing advances, we repeatedly squander the potential for prosperity. That must change. Our past success was built on a willingness to take risks, work hard and invest in long-term goals. National pride and discipline helped power innovation and economic progress. Without those traits, our current trajectory of slow decline could become irreversible. This may sound bleak, but it's a realistic assessment. From the economy to healthcare, housing, education and immigration, the UK faces a series of interconnected crises. Each will only improve if we address the crux of what is driving their deterioration. Three centuries ago, we led the world through bold ideas, entrepreneurial spirit and practical application. We now need leaders willing to face short-term discomfort in order to rebuild long-term national strength.
Business Insider
22-07-2025
- Business
- Business Insider
OpenAI Partners with the UK Government to Advance AI Development
ChatGPT-maker OpenAI and the UK government have teamed up to work on AI security research and explore investments in British AI infrastructure, including data centers. The move is expected to help OpenAI grow its presence in Europe and influence how governments use and control advanced AI. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Key Terms of the Deal As part of this agreement, OpenAI will expand its London office, its first international location established two years ago. This expansion will involve growing its local research and engineering teams. Further, OpenAI will share technical details with the UK's AI Safety Institute. This will help the government better understand what AI can do and what risks it might pose. The deal also aims to explore how AI can be used in areas like justice, defense, security, and education in the UK. All uses will follow strict UK rules and will aim to improve public services and make them more efficient. The initiative aligns with the UK government's plan to invest £1 billion in computing infrastructure for AI development to increase public compute capacity twentyfold over the next five years. This includes the creation of AI Growth Zones, regional hubs designed to attract billions in private investment and create high-paying tech jobs. JPMorgan Initiates Coverage on OpenAI JPMorgan (JPM) recently initiated coverage on private companies, including OpenAI. The firm said OpenAI has grown from a small research lab into a major industry player and the third most valuable private company globally. The firm believes ChatGPT's strong brand and early lead could help OpenAI tap into a $700 billion market by 2030. The firm noted that while OpenAI remains the best-capitalized private AI startup, profitability is not expected until 2029, leaving investors to weigh growth against long-term sustainability. Further, JPM believes that OpenAI must expand revenue sources quickly to justify its steep valuation, currently 27x projected 2025 revenue, above the industry average.
Engadget
21-07-2025
- Business
- Engadget
OpenAI is getting closer with the UK government
The UK government has announced a new strategic partnership with OpenAI that could lead the company to "expand AI security research collaborations, explore investing in UK AI infrastructure like data centers, and find new ways for taxpayer funded services" to use AI. The move follows the introduction of the AI Action Plan in January, which fast-tracks the construction of data centers in certain regions of the UK. In the (entirely voluntary) partnership agreement — technically a Memorandum of Understanding — OpenAI and the Department for Science, Innovation and Technology (DSIT) agree to tackle positive-sounding, but ultimately vague tasks things like finding ways for "advanced AI models" to be used in both the public and private sectors and sharing information around the security risks of AI. OpenAI is also supposed to help DSIT identify ways it can deliver on the infrastructure goals of the AI Action Plan, and possibly explore building in one of the UK's new data center-friendly "AI Growth Zones." All of this sounds nebulous and non-committal because the memorandum OpenAI signed is not at all legally-binding. The partnership sounds nice for elected officials eager to prove the UK is competing in AI, but it doesn't tie anyone down, including the UK government: If Anthropic offers a deal on Claude, they can take it. OpenAI already has offices in London, so deepening its investment doesn't seem out of the question. Signing the memorandum is also consistent with OpenAI's growing interest in working with governments desperate for the high-tech gloss of the AI industry. The logic follows that if OpenAI can get regulators dependent on its tools — say, a ChatGPT Gov specifically designed for government agencies — they'll be more inclined to favor the company in policy decisions. Or at the very least, making a show of collaborating early could win the company a sweeter deal down the road.
Scotsman
17-07-2025
- Business
- Scotsman
AI to unlock 'billions of pounds of investment and thousands of new jobs' in Scotland
Scotland to be epicentre of 'next great industrial leap' as AI Growth Zone confirmed Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland is poised to be at the centre of 'this generation's next great industrial leap' with billions of pounds of investment and thousands of new jobs created after the UK government earmarked an AI Growth Zone to be established north of the Border. The country's booming offshore wind industry is set to power the strategy - which could see data centres and other crucial technology infrastructure built. Advertisement Hide Ad Advertisement Hide Ad Data centres could be built in Scotland as part of an AI Growth Zone The UK government has pointed to Scotland's access to wind, hydro and solar power sources making up a renewable energy capacity of 17.6 GW – enough to power more than 10 million homes . Labour UK ministers see it as an ideal base to help drive forward the UK's AI agenda, but other emerging sectors, including low carbon hydrogen are hoping to take advantage of an excess in renewable electricity being generated. The Scottish Government has welcomed the announcement and it is understood that devolved enterprise agencies north of the Border are working with partners that are seeking to support credible investment proposals and ensure Scottish content can be maximised in the construction and operation of the facilities. AI Growth Zones were unveiled by the UK government in January – and will serve as dedicated hotbeds for AI that speed up the rollout of vital infrastructure like data centres which are crucial to the technology's development. Advertisement Hide Ad Advertisement Hide Ad READ MORE: New supercomputer for Scotland and funding for Acorn Project confirmed in Spending Review Concerns have been raised about the scale-up of AI - including around jobs, security, reliability and the sheer amount of energy required to power AI data centres amid the climate crisis when energy demand will need to be reduced. The UK government believes new data centres will allow researchers and businesses to process huge amounts of data to deliver the next generation of breakthroughs and innovations. It is hoped the technology can assist efforts to find new ways to treat and cure diseases, speed up how conditions like cancer can be diagnosed - while there are even ambitions to use AI to help in the fight against climate change. Advertisement Hide Ad Advertisement Hide Ad AI is being harnessed in Scotland to develop a 25-minute skin cancer diagnosis test - with artificial intelligence projects around skin and breast cancer diagnostics being pushed forward. The rollout will mean that permanent, high-skilled jobs alongside construction roles will be created with the UK government hoping to scale up the sector at pace. In a further boost for the Scottish economy, Edinburgh will be home to the UK's first national supercomputing centre after Chancellor Rachel Reeves announced up to £750 million of funding for the project in last month's Spending Review. Previous plans for a supercomputer at University of Edinburgh's Advanced Computing Facility were shelved by the UK govenrment The centre, to be based at Edinburgh University, will work as a dedicated centre of expertise, with individual sites hosting everything from large data sets and cutting-edge processing power, to linking up researchers and academics with leading talent in their region. Advertisement Hide Ad Advertisement Hide Ad It is hoped the new supercomputer will give scientists from across the UK the capacity needed to carry out research – including related to personalised medical treatments, making air travel more sustainable or modelling climate change. The supercomputer plan was initially shelved by Prime Minister Sir Keir Starmer's Labour government last August amid reported concerns the project was not focused enough on artificial intelligence. That move angered SNP First Minister John Swinney who claimed projects in Scotland were being neglected in favour of investment projects south of the Border. The supercomputer will work alongside an AI research resource (AIRR), a network of the UK's most powerful supercomputers, that were built to bolster scientific research. Advertisement Hide Ad Advertisement Hide Ad The AIRR is already being used to research Alzheimer's vaccines and treatments for cancer by simulating how drugs work inside the body and 'testing' millions of potential drugs virtually to speed up the creation of new medicines. UK Science, Innovation, and Technology Secretary, Peter Kyle, said: 'From the shipyards of the Clyde to developments in steam engine technology, Scottish trailblazers were central to the industrial revolution. Labour MP and Tech and Science Secretary | Getty Images 'AI is this generation's next great industrial leap, so who better to help drive that change than a nation with innovation hardwired in its DNA.' He added: 'We've set out an ambitious plan to cement our position as a global leader in AI, with Scotland set to play a key role – unlocking fresh investment and new opportunities. Advertisement Hide Ad Advertisement Hide Ad 'That's how we're putting our plan for change into action.' Scottish Secretary, Ian Murray, said the announcement was 'a landmark moment' that 'will place Scotland at the forefront of the UK's technological revolution'. Scottish Secretary Ian Murray | PA He added: 'The up to £750 million investment in Edinburgh's new supercomputer also places Scotland at the cutting edge of computing power globally. 'This will see Scotland playing a leading role in creating breakthroughs that have a global benefit - such as new medicines, health advances, and climate change solutions. This is the plan for change – delivering real opportunities and economic growth for communities across Scotland." Advertisement Hide Ad Advertisement Hide Ad The Labour plans form part of the new compute roadmap, a strategy aimed at reducing reliance on foreign processing power and transform the UK's public compute capacity. By 2030, the UK government expects this capacity to increase to 420 AI exaFLOP – the equivalent of one billion people spending 13,316 years doing what the system will do in one second. To support the plans, researchers, academics and tech bosses have been brought together to develop an AI science strategy to be published in the autumn. Advertisement Hide Ad Advertisement Hide Ad The group includes Google DeepMind vice-president Pushmeet Kohli, vice-president of the Royal Society Alison Noble and chairwoman of the Engineering and Physical Sciences Research Council Charlotte Deane. Ms Reeves said the plans would 'transform our public services, drive innovation and fuel economic growth that puts money in people's pockets'. SNP Business Minister, Richard Lochhead, said the Westminster announcement was 'welcome', adding that Holyrood will work 'collaboratively with the UK government to make sure 'Scotland is at the heart of this globally-important industry'. Richard Lochhead He said: 'With our world-renowned talent for research, innovation and ingenuity Scotland is perfectly placed to capitalise on AI's rapid growth and be a supplier of this transformational technology, not just a consumer. Advertisement Hide Ad Advertisement Hide Ad 'We are also home to vital supporting and enabling infrastructure - from good quality digital connectivity to the abundant renewable energy supplies needed to power the huge demand from computer processing in a sustainable way.' 'The UK government's confirmation that an AI Growth Zone and national supercomputing centre will be established in Scotland is welcome', he added. 'It will help unlock new opportunities for businesses, researchers, citizens and communities—supporting high-quality jobs through economic growth and boosting productivity. 'The Scottish Government and our enterprise agencies have been working with prospective Scottish AI Growth Zone projects to support high quality bids into the national selection process being led by the UK government. Advertisement Hide Ad Advertisement Hide Ad
