The Labour government was anticipated to introduce the first-ever U.K. AI Bill in King Charles III’s speech last month, but instead, a DSIT spokesperson stated that the government would consult on AI regulation plans at a later time. (Source: Image by RR)

Former AI Commitments Slashed as Labour Inherits Billion-Dollar Fiscal Challenges

The U.K. government has canceled £1.3 billion ($1.7 billion) worth of computing infrastructure projects, significantly impacting the country’s ambitions to become a global leader in AI. The canceled projects include a £500 million pledge for the AI Research Resource initiative and an £800 million commitment to build a next-generation exascale computer at the University of Edinburgh. These projects were intended to enhance the U.K.’s ability to run advanced AI models by developing high-performance computing infrastructure.

The newly elected Labour government decided to cut these commitments, citing the need to prioritize spending and address a projected £22 billion ($28 billion) of unfunded pledges inherited from the previous administration. As noted in cnbc.com, the government emphasized that these tough spending decisions are necessary to restore economic stability and focus on national growth objectives.

Despite the cancellation of these projects, the government has expressed its ongoing commitment to building technology infrastructure that supports growth and opportunity across the U.K. Last month, the government launched an AI Opportunities Action Plan to explore ways to improve the country’s computing infrastructure and ensure that AI and emerging technologies align with Britain’s industrial strategy.

Additionally, the Labour government is considering the introduction of statutory regulations for the AI industry, contrasting with the previous administration’s approach of avoiding formal legislation to encourage innovation. Although the first-ever U.K. AI Bill was expected to be announced last month, it was not introduced, and the government plans to consult on AI regulation in the future.

read more at cnbc.com