Business advisory group Trachet says Microsoft’s £2.5 billion investment in UK tech is a “significant step” towards the UK’s ambitions to become a global tech leader but urged legislators to address the risks within the sector and put in place a roadmap for the UK”s AI ambitions.
On 30 November, the US tech giant announced that it would invest £2.5 billion in the UK over the next three years to drive future growth within the emerging artificial intelligence industry. The funding will more than double Microsoft’s data centre footprint in Britain, providing crucial infrastructure for new AI models.
The investment will enable more than a million people to gain crucial skills in the burgeoning sector, bringing more than 20,000 of the most advanced graphics processing units into Britain to kickstart the growth of AI infrastructure across sites in London, Cardiff and potentially the North of England, Microsoft said.
Claire Trachet, CEO of Trachet, welcomed the announcement but warned that policymakers must not overlook the need for regulation
“The announcement should provide some much needed optimism to those initially sceptical of the UK’s ambitions to become an AI powerhouse. The $3.2 billion will hopefully lay the bedrock for continued interest and enthusiasm within the burgeoning tech sector,” Trachet said.
“Coupled with the additional £500 million in funding promised in last week’s Autumn Statement, smaller scale start-ups and SMEs will have renewed confidence to deliver cutting-edge products to market faster and ensure that Britain doesn’t lose its spot as a leader in Europe for this sector.”
However, Trachet said policymakers must be careful not to lose sight of the essential need for regulation and a cohesive roadmap detailing the exact trajectory of the UK’s AI ambitions.
Trachet added: “At a time of sustained higher interest rates, investors can no longer take promises of growth for granted. Venture capital funds and high net worth individuals are more frequently ranking security and transparency as core values when it comes to making investment decisions and the UK should take this opportunity to join the likes of the US and EU in the pursuit of sensitive regulation.”
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