Just days into 2025, Sir Keir Starmer announced the UK government’s new AI Action Plan.
Billed as a “blueprint to turbocharge AI”, the plan was a proclamation that artificial intelligence would “be unleashed across the UK to deliver a decade of national renewal”.
£14 billion in investment and 13,250 new jobs in the UK may sound impressive, but it pales in comparison to what’s happening in the US.
Just days after Starmer’s reveal, OpenAI, Softbank, and Oracle announced $500 billion in backing for a joint venture called Stargate to build AI infrastructure in the US. The UK is in a race for AI supremacy that requires very deep pockets.
Starmer’s plan to focus on reducing administrative burdens through AI is an admirable and worthwhile ambition, but words are cheap and implementation on this scale demands more than technology deployment.
This requires transformation at a fundamental level. Tech leaders who’ve built and scaled companies understand that this transformation process is complex, resource-intensive, and often challenging.
The notion of AI Growth Zones sounds impressive on paper but raises serious questions about artificial clustering versus organic innovation.
Real tech development happens when talented people solve genuine business problems, not when they’re corralled into designated zones. There’s a genuine risk of creating isolated tech bubbles that fail to deliver meaningful value to the broader economy.
The skills challenge is particularly concerning, which is ironic given it was the UK that spawned DeepMind, the cutting-edge AI lab acquired by Google and used to power its Gemini model. Creating thousands of AI jobs is meaningless without a robust pipeline of talent to fill them.
The plan offers little concrete detail on addressing the fundamental skills shortage that already plagues the tech sector. Without this foundation, many of the proposed initiatives risk becoming expensive exercises in wishful thinking.
The emphasis on infrastructure over practical business support is telling. Having navigated the challenges of building and scaling a tech company, it’s clear that what businesses need isn’t just physical infrastructure, but practical support in implementing AI solutions that deliver real value. The plan’s approach risks putting the cart before the horse.
Small and medium enterprises — the backbone of the UK economy — may find themselves locked out of these opportunities. The financial and operational barriers to meaningful AI adoption are significant, and the plan offers little reassurance that these will be addressed effectively.
Yet amid these concerns, there are glimmers of promise. The commitment to reducing administrative overhead could deliver real benefits if implemented effectively.
Private sector investment signals genuine market confidence — essential for sustainable growth in the tech sector.
For business leaders watching these developments, the message should be clear: maintain absolute focus on fundamentals. Avoid getting caught in the hype cycle. Understand precisely how AI can solve specific operational problems.
Start small, measure results, and scale what works. Government support might help, but success will still depend on solid business foundations and execution.
The coming months will be crucial. The tech sector needs to see how these grand proclamations translate into tangible support for companies driving genuine innovation.
Without concrete action and practical implementation, this risks becoming another policy announcement long on ambition but short on delivery.
Draven McConville is a tech founder and investor based in the UK. For more, visit dravenmcconville.com or follow him on LinkedIn.
