The government has unveiled more than £600m in AI-related investment ahead of the Budget, with a promise that new technology will not push British workers out of jobs.
Defence Secretary John Healey vowed to take a “distinctively British approach to AI”, balancing economic growth ambitions against the need to shield workers from automation-driven redundancies.
“I understand and share the concerns of working people, so I am setting out a distinctively British approach to AI — one that doesn’t leave workers behind and defends our national interest, while ensuring the benefits of AI-enabled growth are felt right across the country,” he said.
The announcement arrives just days after Barclays revealed plans to cut 5,000 jobs as part of an efficiency drive involving AI, heightening fears about accelerating redundancies at major British employers.
The Treasury will commit £10m a year to studying the impact of AI on employment, alongside hundreds of millions of pounds earmarked for cyber security, British tech firms, and domestic AI infrastructure.
An additional £23m over three years will fund the AI Economics Institute, which will examine the technology’s broader effects on both productivity and the jobs market.
The largest portion of the package targets AI security, with £165m allocated to a National AI Biosecurity Initiative, including £100m for a new laboratory designed to detect biological threats and develop medical countermeasures.
That facility will also receive up to £200m in AI model credits from OpenAI and Anthropic, alongside partnerships involving Google DeepMind and British life sciences firm Basecamp Research.
A further £120m will go to the AI Security Institute, while £60m will fund a National Cyber Shield using AI agents to strengthen Britain’s cyber defences against emerging threats.
Ministers plan to establish a £70m centre dedicated to identifying vulnerabilities across critical national infrastructure, responding to growing concern over increasingly autonomous AI systems.
Financial Conduct Authority chief executive Nikhil Rathi warned this week that emerging technologies were putting threats to financial markets “on steroids”, adding pressure on policymakers to act decisively.
The Chancellor is also committing an additional £60m to the Sovereign AI Fund, expanding its remit to include robotics, autonomous systems, and advanced manufacturing to support British companies.
AI minister Kanishka Narayan has previously warned that Britain must avoid repeating the painful transition experienced by workers during the Industrial Revolution as automation accelerates.
“By backing British science, advanced chips and our own AI companies, we can strengthen our national security, rebuild Britain’s industrial strength and create good, skilled jobs across the country,” Narayan said.
The package also includes £30m for local AI partnerships, a new cyber security training centre in Manchester, and £15m for a competition rewarding AI innovations that tackle health problems.
Julian David, chief executive of techUK, welcomed the investment, saying it would help British AI companies “grow here, not abroad” rather than relocating to overseas markets.