Turning Quantum Research into Practical Solutions

The Government has announced £50 million for businesses developing quantum technologies, supporting projects intended to improve healthcare, transport, environmental monitoring and national security.

Announced on 13 October, the funding will be delivered through UK Research and Innovation’s (UKRI) Sensing and Positioning, Navigation and Timing competition. It will help companies build on early testing and develop products for practical use.

Quantum technologies exploit the behaviour of particles, including atoms, to enable highly precise measurements. These capabilities could help address challenges ranging from locating railway faults to providing more accessible medical scans.

Science, Innovation and Investment Minister, Chris McDonald said:

“Quantum has long been an exciting technology, but now real world applications are within our grasp.”

The announcement places particular emphasis on translating research into products, with potential benefits for public services alongside opportunities for business growth and skilled employment.

Bringing Eye and Brain Scans Closer to Patients

Two supported companies are developing diagnostic technologies with potential applications in NHS care.

Siloton Ltd, based in London and Bristol, is developing a handheld eye scanner designed to make advanced diagnostics available beyond specialist hospitals. Smaller, more accessible devices could support screening in community settings and help reduce pressure on hospital services and waiting lists.

Making scans available closer to patients could improve access and support more convenient diagnostic pathways.

In Nottingham, Cerca Magnetics Ltd is working to bring a wearable brain scanner into clinical use, particularly for assessments before surgery for epilepsy.

Professor Michael Lewis, Scientific Director for Innovation at the National Institute for Health and Care Research (NIHR), said:

“Research into Quantum enabled technologies are at the tipping point of being able to enter care. Early investment by NIHR and UKRI into promising UK innovations is now starting to bear fruit”

His comments highlight the growing opportunity to translate quantum research into clinical tools. For patients and NHS services, the next step will be demonstrating how these technologies can improve diagnosis and access to care.

Both projects illustrate how quantum sensing could contribute to healthcare delivery. Their eventual impact on waiting lists and patient outcomes will depend on clinical validation, adoption and integration into services.

Representing the health innovators sector, Chief Executive of UK Healthcare and Life Sciences Innovation (UKHLSI), Jo Bekis told Politics UK:

“This is much welcomed news. This funding highlights the potential of quantum innovation to transform diagnostic imaging, bringing world-class scanning technologies closer to the patients who need them most, it also provides innovation companies real opportunity to transform and scale with the right support.”

Finding Railway Faults and Strengthening Navigation

West Midlands-based MoniRail Ltd is developing high-accuracy positioning technology for trains.

Its quantum monitoring system could help identify the precise location of faults in railway tracks and signalling equipment, including where GPS cannot reach. More accurate location information could enable maintenance teams to find and address problems faster, potentially reducing disruption for passengers. The project also aims to support applications in railway signalling infrastructure.

In Oxford, Quantum Fabrix Ltd is developing a next-generation satellite clock for navigation, defence and communications infrastructure.

Accurate timing underpins many systems that people and organisations rely on. The project demonstrates the role quantum technology could play in strengthening the infrastructure supporting transport, connectivity and security.

Supporting Defence, Emergency Response and Environmental Monitoring

Oxfordshire-based ColdQuanta UK Ltd is receiving support to develop a compact, mobile quantum radio system capable of locating signals with high accuracy.

Potential applications include military operational intelligence, protection of critical infrastructure such as airports, and search and rescue. Emergency responders could use the technology to help locate distress signals.

Meanwhile, Wales-based QLM Technology Ltd is developing a camera that can detect and measure greenhouse gases across energy, water and waste infrastructure.

Its project highlights the potential for quantum sensing to support environmental monitoring, helping operators identify emissions and understand where action is needed.

Together, these projects show the breadth of applications being pursued across the UK, from clinical services to infrastructure resilience.

Building British Quantum Supply Chains

Alongside the sensing and positioning funding, UKRI is investing £20 million in UK businesses to develop domestic capability in quantum communication networks.

Through its Enabling Commercial Quantum Networking competition, it will support companies including Sheffield-based Aegiq to develop specialist components, such as lasers and photonic chips.

The investment aims to strengthen UK supply chains and build capability in the components needed to commercialise quantum systems.

Professor Charlotte Deane, UKRI’s Senior Responsible Owner for IS8 Quantum, said the funding would help businesses develop their technologies while retaining essential supply-chain capabilities in the UK. She also highlighted potential benefits for military and emergency services when conventional navigation and communications systems cannot be relied upon.

UKAI Calls for Investment to Match Britain’s Quantum Ambition

Welcoming the announcement, Tim Flagg, Chief Executive of UKAI, called for sustained investment to help Britain retain the economic and strategic benefits of its scientific expertise.

“The UK has spent decades building its quantum advantage, and we welcome the Government’s continued investment in this critical technology. The challenge now is ensuring the scale and pace of investment matches our ambition, as international competition for technology and talent accelerates. We have seen too often how British scientific breakthroughs create industries that scale elsewhere.

“At the intersection of quantum computing and AI, the UK has an opportunity to write a different story, building sovereign capabilities and world-leading businesses. At Quantum Britain on 2 November, we look forward to exploring how we turn this opportunity into lasting economic and strategic advantage.”

His comments underline the commercial challenge behind the announcement: ensuring that support for research translates into companies that can grow in the UK, retain specialist talent and compete internationally.

Developing the Workforce to Deliver Growth

An £8 million expansion of UKRI’s QuEST Apprentices Programme will support training for engineering technicians and specialist quantum technicians.

By 2030, the programme aims to equip 150 apprentices studying engineering subjects with skills to support the growing quantum workforce.

The announcement also coincides with the relaunch of Quantum City, an Engineering and Physical Sciences Research Council-funded public engagement initiative, with updated resources highlighting training opportunities and career pathways.

The wider policy ambition is to make the UK a world leader in quantum sensing by 2030, supported by up to £2 billion of investment announced earlier this year.

For public services and industry, the next challenge is delivery: demonstrating that these technologies work reliably, can be manufactured at scale and offer measurable improvements. The funding provides an opportunity to connect Britain’s research strengths with the practical needs of patients, passengers, employers and frontline services.

Find out more

To find out more about UKAI and its work on quantum, please click here.

The UK’s ability to compete in artificial intelligence will depend on more than research, investment, and new technology. It will also depend on whether the country can build the infrastructure AI needs: data centres and advanced computing, secure electricity, timely grid connections, water, resilient digital networks, and a skilled workforce.

At Labour Party Conference, UKAI launched Connected Regions, Competitive Britain: A Devolved Delivery Model for Green AI. The report sets out how the UK can coordinate these needs and turn its AI ambitions into regional investment, stronger domestic capability, and economic growth.

The Government has made progress. The revised National Planning Policy Framework (NPPF) gives greater weight to AI Growth Zones, data centres, and related energy infrastructure. Nationally significant data centres can now enter the Nationally Significant Infrastructure Project (NSIP) regime, while Ofgem, and the National Energy System Operator (NESO) are working on reforms to the electricity connections process.

But UKAI argues that these initiatives remain fragmented. The AI Energy Council and the joint Ofgem–NESO connections programme each address parts of the challenge, but no single body is responsible for bringing together planning, energy, water, connectivity, skills, and regional delivery.

The scale of the connections challenge is growing. Ofgem figures cited by UKAI show grid demand applications rising from 41GW to 125GW in less than a year, with data centres accounting for at least 70GW of the queue. Planning consent, the report argues, does not guarantee an electricity connection, affordable power, adequate water, reliable fibre or trained workers. Nor does it ensure that a new facility will support local industries, jobs or AI adoption by businesses, and public services.

From national ambition to regional delivery

The report’s main argument is that AI infrastructure should be treated as connected economic infrastructure, rather than as a series of individual property developments. Decisions about where computing capacity is built need to reflect where energy is available, the strengths of regional industries and the infrastructure that can be shared.

Data centres and advanced computing can support sectors beyond digital technology, including life sciences, advanced manufacturing, defence, financial and professional services. Regional plans could connect these needs with local universities, businesses, skills provision and infrastructure, while helping British firms win contracts and scale their capabilities.

UKAI proposes a clearer division of responsibilities. Central government should set a national Green AI mission, establish environmental and security standards, coordinate national infrastructure, and provide access to strategic finance. Mayoral authorities should turn national priorities into regional programmes by assessing demand and infrastructure, identifying suitable sites, aligning skills provision, and building investable project pipelines.

Devolution, the report cautions, must come with the expertise, funding and influence needed to deliver. Giving regions planning responsibilities without the resources to coordinate energy, water, connectivity and investment risks shifting fragmentation from Whitehall to local government.

Five priorities for government

The report sets out 18 recommendations and five immediate priorities:

1. adopt Green AI as a national mission;
2. establish a cross-government AI Infrastructure Delivery Unit;
3. publish a dedicated National Policy Statement for data centres;
4. require mayoral strategic authorities to prepare regional AI infrastructure plans;
5. introduce common Green AI performance standards for major projects.

The proposed delivery unit would bring together government departments, regulators and delivery bodies to resolve barriers that fall between areas of responsibility. UKAI is urging the Government to use the Autumn Budget on 28 October to establish the unit and give mayors the technical teams and long-term finance needed to deliver infrastructure in their regions.

The National Policy Statement would provide a joined-up framework covering energy, water, connectivity, security, environmental performance and community benefit. Regional plans would assess credible demand for computing capacity alongside suitable land, grid and water capacity, renewable generation, storage, connectivity, workforce needs and opportunities to reuse heat.

To finance delivery, UKAI recommends enabling regions to establish investment vehicles that bring together devolved revenues, public finance and private investment. These could support shared substations, storage, water systems, fibre routes and heat networks serving multiple projects and nearby communities. The report also proposes regional delivery teams to provide developers and investors with a single point of contact.

Making growth work for places and the energy system

The report argues that infrastructure projects should be assessed not only by the electricity they consume, but also by their contribution to the energy system and the communities where they are built. Facilities located near surplus renewable generation could help make better use of clean power. Flexible computing workloads, storage, and local balancing could also help manage demand and network constraints while protecting consumer affordability.

UKAI says stronger environmental standards are needed. Data centre developers are not currently required to report consistently on power usage effectiveness, water usage effectiveness or carbon intensity. The report calls for common measures for major projects, including energy and water efficiency, carbon intensity, clean-energy use, grid flexibility and waste-heat reuse.

It also recommends a community-benefit framework covering local employment, apprenticeships, connectivity, environmental improvements, public infrastructure and community investment. Early, open engagement matters: communities hosting new infrastructure need to understand its effects and see a tangible benefit. Trust, the report argues, is a condition for securing the local support needed to deliver projects on time.

The report was developed with UKAI’s Infrastructure Working Group, chaired by Lorraine Mackin, Deloitte’s Vice Chair for Sustainability and Infrastructure, with input from Energy Minister Michael Shanks MP.

Measuring progress by delivery

The main tests for UKAI in measuring success are whether projects secure grid connections, attract investment, enter construction, and create demonstrable regional value. That value should include jobs and skills, efficient use of energy and water, support for the electricity system, stronger local industries, and improve public confidence.

UKAI argues that the UK does not need to compete by pursuing the greatest possible volume of computing capacity. It can build an advantage by deploying AI infrastructure efficiently and responsibly, connecting it to clean energy and regional economic strengths, and supporting British firms to develop sovereign AI capabilities.

The UK has research expertise, renewable generation, engineering capability, and globally important financial markets. The challenge is to coordinate them – something successive governments have failed to deliver effectively. A national mission, accountable cross-government leadership, and regions equipped to plan and finance delivery could make Green AI a source of lasting industrial capacity and economic growth.

The report’s conclusion is that national strategy and devolution need to work together. A coherent national direction, matched with well-resourced regional delivery, can help the UK build the infrastructure its AI economy needs.

Find out more about UKAI

To find out more about becoming a member of UKAI, please click here.

Businesses at the centre of AI policy

Dr Ben Spencer MP, Shadow Minister for Science, Innovation and Technology, has urged businesses developing artificial intelligence to help inform Conservative policy, arguing that politicians must understand the industry’s work if they are to support its growth and scrutinise government effectively.

Addressing an industry audience at Conservative Party Conference, Dr Spencer thanked those who had provided advice, introductions and support as he took on the AI brief.

He framed engagement with businesses as central to his approach, arguing that policy should begin with an understanding of how the technology is being developed and used.

“Government doesn’t make AI – businesses, you guys, make AI.”

He encouraged companies to contact him directly, inviting feedback on both his own work and the areas where the Opposition should challenge ministers.

“Please get in contact with me if you haven’t spoken to me already, so you can tell me when I’m doing something right, when I’m doing something wrong, and where we need to be challenging things,” he said.

The invitation positioned industry engagement as a source of practical evidence for both parliamentary scrutiny and the development of the Conservatives’ own AI agenda.

Challenging the Government’s AI responsibilities

Dr Spencer directed his strongest criticism at the organisation of AI responsibilities across government.

He told the audience that he had asked an unnamed AI tool to produce an organogram showing the Government’s AI departments, responsibilities, and reporting arrangements.

Describing the result, he said it showed “a complete mess and a shambles”, suggesting that businesses were struggling to navigate the structures around them.

His remarks were a political criticism of government organisation, rather than a detailed assessment of individual departments or their performance. However, they identified clarity of responsibility as an issue he intended to pursue through his shadow brief.

Dr Spencer said his immediate task was to keep government grounded in the realities facing the sector while working with Conservative colleagues to develop the party’s policy.

“My primary task is to try to get Government to stay real.”

He referred to developing “some really cool ideas”, but did not announce specific proposals, funding commitments or regulatory changes in these remarks.

Shaping the future, rather than simply predicting it

Alongside his criticism of government, Dr Spencer offered an optimistic account of Britain’s potential.

Describing himself as a science-fiction enthusiast, he spoke about the influence of author Isaac Asimov, whose work he had read in his late teens.

He loosely paraphrased an idea he attributed to Asimov: that thinking about the future should involve imagining the future people want and working to create it.

For Dr Spencer, AI represented the beginning of a substantial change whose longer-term consequences remained uncertain.

“We genuinely have no idea what is going to happen over the next five or ten years, let alone twenty or thirty years,” he said.

Nevertheless, he argued that uncertainty should not prevent Britain from acting. He described the country as well placed to benefit, provided businesses had the conditions they needed to develop and compete.

“If we can make sure we have the right business and economic environment, we can grab this opportunity, become competitive and drive growth.”

His closing message placed responsibility for turning that potential into results firmly with the businesses in the room: “You guys are going to make this happen.”

Final thought: turning engagement into a credible programme

Dr Spencer’s remarks set out his plans to listen to businesses, challenge unclear government responsibilities, and focus on competitiveness. That gives the Conservatives a starting point, but the test will be whether industry engagement produces clear choices on investment, infrastructure, skills, adoption, and proportionate regulation.

His criticism of government organisation will carry greater weight if accompanied by an explanation of how his party would make accountability clearer and delivery more effective. For the sector, the opportunity is to turn his invitation to engage into specific proposals that connect Britain’s AI capabilities with measurable economic and public benefit.

(Photo: Christine Quarmyne/CCHQ)

Tim Flagg

Chief Executive, UKAI

Andy Burnham has made an ambitious start, with early reforms on AI, devolution, and skills reflecting many of the priorities long championed by UKAI. But while structural changes are encouraging, the real test will be whether government backs British AI businesses through procurement and investment, ensuring AI-driven growth creates jobs, skills, and prosperity across the UK. (Photo: Minister Narayan opens the AI Adoption Summit at the Science Museum. Photo: Alecsandra Dragoi/DSIT)

Since Andy Burnham entered Number 10, the sense of mission has been unmistakable. Here is a Prime Minister who communicates with clarity and conviction, and who has assembled a team built to match that ambition. It is telling that some of his closest advisors cut their teeth under Blair, when Labour last had to prove it understood what business actually needs to grow. That combination of communicators and operators, of people who can both articulate a vision and deliver it, gives me real confidence that this Government intends to be judged on outcomes, not slogans.

At UKAI, we welcome that ambition. Britain needs a Prime Minister prepared to be bold about social progress. But ambition on its own does not build an economy. Growth comes from businesses, not from governments. The state’s job is to create the conditions in which firms can invest, hire and scale. The early signals suggest Burnham understands this distinction and he is listening. That is no small thing in politics, and it should not be taken for granted.

Listening Government

Nowhere is that listening more evident than in his instinct for devolution. Burnham made his name as Mayor of Greater Manchester, and he has brought that experience into government. Real devolution means handing power to local leaders and local industry, the people who understand what their region actually needs. Seen in that light, the restructuring of DSIT may well reflect a longer-term goal: shifting power and decision-making away from Whitehall, not just north to Manchester, but out to every region of the country. Giving power away is hard for any government, especially one with a mission as large as this one. It requires ambition and trust. So far, Burnham has shown both.

That trust matters most where AI is concerned. UKAI has long argued that artificial intelligence is the single biggest lever available to reform public services and improve outcomes for people in every community in the UK, provided it is deployed responsibly. Burnham appears to see the same opportunity. The clearest evidence is his decision to elevate Kanishka Narayan to Cabinet as the UK’s first Minister for AI, alongside the reform that folded the old Department for Science, Innovation and Technology into a new Department for Business, Innovation, Science and Trade under Jonathan Reynolds. That is a serious structural signal. Senior civil servants have been telling us for months that government AI strategy needs greater, cross-departmental coordination, replacing fragmentation and duplication. This restructuring, with Minister Narayn now sitting in the Cabinet Office, goes a long way toward answering that call.

It also answers two of the three asks in the open letter that UKAI sent to Burnham last week. We called on the Prime Minister to engage industry leaders across the regions to build ecosystems tailored to each area’s own strengths and its own people. The devolution agenda, done properly, is exactly that. We called for education reform to produce the skills that British industry will require to lead in the future, and Burnham has already made announcements about his desire to refocus education around the jobs that industry needs. Two out of three delivered within the first couple of weeks is a strong start for any new government.

UK AI Companies

Our third ask is to back British businesses and invest taxpayer-funded contracts in procuring services from AI companies in the UK. That means ensuring a minimum percentage of contracts go to British firms, enabling them to scale and hire British workers to fill the jobs that AI adoption creates. Sovereignty in AI was never about building everything domestically. It is about finding a balance, while ensuring that when public money is spent, it strengthens our own capability – providing jobs and skills for the next generation. This is the piece of the puzzle Burnham has not yet closed, and it is the one on which his mission will most visibly be judged by the businesses that UKAI represents.

None of this diminishes what has been achieved in a matter of weeks. Burnham has shown he can be both ambitious and disciplined, both a devolver of power and a coordinator of strategy, both optimistic about what Britain can become and clear-eyed about the machinery needed to get there. That is a rare combination, and it is why UKAI’s initial verdict is positive.

But delivery, not rhetoric, is what will define this Government’s legacy on AI. British AI should be responsible AI: sustainable, inclusive, and built to empower people in every community. AI will unlock growth. Burnham must ensure it is built by British workers, for British benefit. Get that right, and this Government will have shown Britain how to make AI work for everyone.

To find out more about UKAI, please visit www.ukai.co

The agreement, signed in Kyiv by Prime Minister Andy Burnham and Ukrainian President Volodymyr Zelenskyy, establishes government, industry, and academic cooperation on defence AI, autonomous systems, cyber security and secure data.

UKAI has welcomed the deal as an opportunity to connect Britain’s AI ecosystem with real-world applications and deepen long-term collaboration between UK and Ukrainian innovators.

The agreement, signed by Prime Minister Andy Burnham and Ukrainian President Volodymyr Zelenskyy in Kyiv on Monday, will make the UK the first international partner to gain access to Ukraine’s Avengers AI Labs.

The platform collects real-world information from thousands of daylight cameras and infrared sensors operating across the battlefield in Ukraine, capturing millions of objects including tanks, artillery, air-defence systems, infantry positions, Shahed drones, and reconnaissance unmanned aerial vehicles.

That information is then used to train AI models.

For UK researchers, engineers and technology companies, access to the platform could provide an unusually large source of real-world operational data through which new AI systems can be developed and tested.

In return, Ukraine will gain greater access to Britain’s universities, researchers and technology companies as the two countries seek to turn battlefield experience into technologies that could have applications well beyond the war.

From battlefield innovation to a long-term technology partnership

The Government said the initial focus would be defence and national security, bringing together engineers, academics, businesses and military operational expertise from both countries through what it described as an AI cell.

However, ministers believe some of the resulting technologies could eventually have civilian applications in areas including critical infrastructure, transport, and energy.

The agreement forms part of the wider UK-Ukraine 100 Year Partnership and establishes a framework intended to extend beyond individual defence projects.

Prime Minister Andy Burnham said:

“Ukraine has become one of the world’s leading innovators in defence technology, forged through courage, ingenuity, and the hard lessons of war.

“This groundbreaking partnership will bring together Ukraine’s unrivalled operational experience with Britain’s world-class AI ecosystem, giving us the opportunity to develop the technologies of the future, changing lives here in Britain and saving lives on the battlefield in Ukraine.

“By combining Ukrainian battlefield data with UK expertise, we will accelerate the development of capabilities that not only strengthen our national security but better protect our critical infrastructure and growth in every postcode here at home.”

The accompanying Joint Declaration of Intent provides greater detail about how that cooperation will operate.

It commits the two countries to developing next-generation AI-enabled armed forces and establishes three main pillars of cooperation.

Government-to-government collaboration will cover areas including jointly developed models, secure data and computing pathways and AI assurance.

Industry will work through those government arrangements to develop, test and deploy technology against agreed operational challenges.

Universities and research organisations will meanwhile collaborate in areas including autonomous systems, AI assurance, cyber security and synthetic data.

The declaration also commits both countries to protections around data sovereignty, intellectual property and export controls, while seeking interoperability with NATO systems.

Importantly, the partnership will initially follow a pilot-first approach rather than attempting to establish an entirely new institutional structure before practical projects have been tested.

UK start-ups already testing technology

That work has already begun.

Three UK start-ups – Bristol-based Sintela, Oxford-based Mind Foundry, and London-based Skyral – are involved in pilot projects combining Ukrainian operational data with UK-developed technology.

One of the first systems is preparing to be deployed at a UK defence site.

The technology uses buried fibre-optic cables as enormous AI-enabled sensors capable of detecting activity around protected sites.

Although initially designed to help protect military facilities from protesters and hostile actors attempting to gather intelligence, ministers believe similar systems could eventually be used around airports, prisons, railway infrastructure, and energy facilities.

A second project will examine next-generation low-power AI chips for drones, robotics, and autonomous systems.

Reducing the amount of energy required for onboard AI could allow autonomous systems to operate for longer periods and respond more quickly in environments where conventional communications or computing infrastructure is unavailable.

Defence Secretary Wes Streeting said:

“Ukraine is pushing the frontier of defence innovation as they bravely resist Putin’s illegal invasion. From supporting with military equipment and training to co-developing cutting-edge technology, the UK will stand shoulder-to-shoulder with Ukraine for as long as it takes.

“By combining the UK’s world-leading scientists, engineers and tech companies with Ukraine’s unique battlefield experience and data, we will strengthen both of our nations’ defence and security.”

‘AI sovereignty in practice’

The Government is also presenting the agreement as part of its wider ambition to strengthen sovereign UK technological capability.

Rather than sovereignty meaning that every component of an AI system must be designed or manufactured domestically, the partnership demonstrates an approach in which Britain seeks control over strategically important capabilities while collaborating with trusted international partners.

Minister for AI Kanishka Narayan said:

“Britain and Ukraine are the closest of partners. Ukraine’s extraordinary courage on the battlefield has been matched by remarkable technological ingenuity.

“By giving UK start-ups, researchers and engineers access to insights from its Avengers AI platform, we are taking that partnership further and helping Britain develop the next generation of defence technology.

“This is AI sovereignty in practice: building our own capabilities and turning frontline experience into systems that protect our armed forces overseas and our critical infrastructure at home.”

The partnership comes as the Government increasingly considers AI not simply as an economic or public-service technology, but as part of the UK’s national security and strategic infrastructure.

The Joint Declaration explicitly recognises AI, autonomous systems and network-enabled capabilities as increasingly important to modern warfare and argues that maintaining a technological advantage will form part of future deterrence.

It also creates scope for technologies developed jointly by Britain and Ukraine eventually to be shared with trusted allies and partners where both governments agree.

UKAI welcomes opportunity for collaboration

The trade association for the AI economy in the UK, UKAI, welcomed the agreement and the opportunities it could create for UK technology companies, researchers and universities.

A UKAI spokesperson said:

“This is a significant development for the UK AI ecosystem and demonstrates what can be achieved when government, industry, academia, and end users collaborate around clearly defined real-world challenges.

“Ukraine has developed extraordinary technological and operational expertise under the most difficult circumstances, while the UK has world-leading AI companies, researchers, and universities. Bringing those capabilities together can support both countries while creating lessons and technologies with applications across defence, resilience, and the protection of critical national infrastructure.

“UKAI welcomes the Government’s commitment to involving UK start-ups and technology companies from the outset. We look forward to working with government, our members, and partners across the Ukrainian technology community to explore how that collaboration can be expanded, while ensuring that responsible development, security and effective AI assurance remain at the heart of deployment.”

For the UK AI industry, the significance of Avengers AI Labs may extend beyond access to another dataset.

One persistent challenge when developing sophisticated AI systems is securing high-quality information from real operating environments against which technology can be trained and evaluated.

Ukraine has accumulated exactly that kind of information through more than four years of intensive warfare.

The challenge for both governments will now be turning access to that experience into deployable capabilities while maintaining the safeguards around sensitive military data, intellectual property, and national security set out in the agreement.

A wider defence relationship

The AI agreement was one of several announcements made during Burnham’s visit to Ukraine.

The Prime Minister also announced that the Government had agreed that defence company MBDA could release classified information relating to UK components within the long-range SCALP missile.

The move is intended to support the establishment of local assembly lines in Ukraine.

Together, the announcements point towards an evolution in the UK-Ukraine defence relationship: away from a model centred predominantly on Britain supplying weapons and equipment towards one involving increasing amounts of joint development, industrial cooperation, and technology sharing.

The Artificial Intelligence Partnership makes that shift explicit.

Rather than treating Ukraine simply as the recipient of Western technology, the agreement recognises the country as an increasingly important source of defence innovation in its own right – and seeks to combine that experience with Britain’s research base, technology industry and AI ecosystem.

The next test will be whether the pilot projects can be converted into operational technologies at sufficient speed and scale.

Under the declaration signed in Kyiv, further implementation arrangements are expected to be developed over the coming months.

Photo: Lauren Hurley/No 10 Downing Street

The UK and Australia are deepening cooperation on artificial intelligence (AI) security, with a new agreement designed to help both countries respond to fast-moving risks from powerful AI systems.

The Memorandum of Understanding (MoU), announced as ministers meet in Canberra, will bring together the UK AI Security Institute and the Australian AI Safety Institute. The partnership will focus on frontier AI capabilities, including how advanced systems could be used in cyber-attacks, as well as how AI could strengthen cyber defence.

The agreement comes at a time when governments are increasingly concerned about the speed at which AI systems are developing. While AI is expected to support economic growth, improve public services and strengthen national capability, ministers are also warning that the same technology could be used to scale cyber threats, automate malicious activity or accelerate the discovery of new vulnerabilities.

Under the new partnership, the two institutes will share information on AI capabilities, collaborate on research into emerging risks and work together on international best practice for testing and evaluating AI systems. The agreement will also allow for staff exchanges between the two institutes, building day-to-day cooperation between teams working on AI safety and security.

Ministers seek to stay ahead of fast-moving risks

UK AI Minister, Kanishka Narayan signed the agreement alongside Australia’s Assistant Minister for Science, Technology and the Digital Economy, Dr Andrew Charlton, in Canberra.

Narayan said the UK and Australia had “always worked closely” to protect their citizens, adding that the partnership “matters more than ever in the age of AI”. He warned that the technology is moving quickly, particularly in areas such as cyber security, and said: “No country can tackle that alone.”

His comments reflect a growing international consensus that AI safety and security cannot be managed by individual countries acting alone. As frontier models become more capable, governments are seeking to develop shared approaches to evaluation, risk monitoring and technical testing.

The UK has placed significant emphasis on AI safety since hosting the first global AI Safety Summit at Bletchley Park in 2023. The AI Security Institute has since become a central part of the UK’s approach to understanding the risks posed by advanced AI systems and informing policy decisions.

The new agreement with Australia adds another layer to that international work, strengthening bilateral cooperation with a close ally while contributing to wider efforts to build common standards for frontier AI assessment.

Frontier AI and the cyber security challenge

The Government said the agreement is being driven partly by new research from the UK AI Security Institute, which indicates that advanced AI systems are improving rapidly in their ability to carry out complex cyber-attacks. That creates risks for businesses, critical infrastructure and the wider public, but it also opens up opportunities for defenders to use AI to identify vulnerabilities, detect attacks and strengthen resilience.

This dual-use challenge is one of the central questions facing policymakers. The same capabilities that could help a security team analyse code, monitor threats or respond more quickly to incidents could also be misused by malicious actors to automate parts of the cyber-attack chain.

The UK and Australia’s approach appears to be based on the view that technical cooperation is essential. Rather than treating AI security as a purely domestic policy issue, the two countries will work together on testing, evaluation and research, helping to ensure that both governments have a stronger evidence base as the technology develops.

“This is exactly the kind of international cooperation we need to see more of. The UK has already established itself as a leader in AI security, and by working closely with trusted partners like Australia we can build the coalitions needed to stay ahead of fast-moving risks while ensuring AI is developed safely and responsibly.”

Tim Flagg, CEO, UKAI

Building international best practice

The partnership will also support work on international best practice for AI evaluation. That is likely to become increasingly important as governments, companies and research bodies seek clearer ways to assess whether powerful AI systems behave as intended.

The Australian Department of Industry, Science and Resources said MOU will provide a framework for technical cooperation and promote the safe and responsible use of artificial intelligence. It said the agreement would help both countries share expertise on emerging AI capabilities and risks, conduct joint research, and support international work on AI measurement, evaluation and science. The department added that the partnership would help both countries “keep pace with change” while ensuring communities share in the benefits of AI.

The UK AI Security Institute already works with research bodies across major economies through the International Network for Advanced AI Measurement, Evaluation and Science, as well as through bilateral partnerships. The Australia agreement adds to that growing network of cooperation.

AI security enters a new phase

The UK-Australia pact signals a shift in how allied governments are approaching AI risk. The pact demonstrates how governments are looking to move away from high-level principles or broad ethical statements. Increasingly, governments are moving towards practical technical cooperation: sharing research, testing models, evaluating capabilities and building institutional links between AI safety and security bodies.

That reflects the pace of change in the technology itself. As AI systems become more capable, the risks they pose are becoming more operational, particularly in cyber security. The challenge for governments is to keep pace without slowing the benefits AI can bring to innovation, economic growth and public services.

The agreement between the UK and Australia is therefore both a security measure and a strategic partnership. It aims to ensure that two close allies can better understand emerging AI risks, strengthen their defences and help shape the international standards that will guide frontier AI development in the years ahead.

Tim Flagg

Chief Executive, UKAI

The UK does not lack ambition on AI writes CEO of UKAI, Tim Flagg. What it lacks is the confidence and coordination to turn that ambition into delivery. This opinion article was written in response to the Get Britain Growing: South East conference sprint on AI.

Artificial intelligence is already shaping how organisations operate, how decisions are made, and how people interact with work, education, and public services.

Across the economy, AI is now foundational. It is changing the nature of productivity, transforming professional roles, and redefining the skills people need to participate in the modern labour market. As demonstrated at the AI sprint session of the Get Britain Growing conference in Brighton, for regions such as the South East, this presents an enormous opportunity. With world-class universities, innovative businesses and strong entrepreneurial networks, the region has many of the ingredients required to lead.

But potential is not the same as delivery.

The Gap Between Ambition and Adoption

In my role as Chief Executive of UKAI, I regularly speak with businesses, policymakers, educators, and technologists across the country. The message I hear again and again is strikingly consistent – the UK does not lack ideas about AI. What it lacks is coherence, confidence, and a clear route from ambition to implementation.

That is the challenge this Sprint on AI and Skills was designed to confront.

The South East is often presented as a single prosperous region, closely tied to London, and assumed to be well placed to benefit from the next wave of technological change. Yet that broad characterisation hides a more complex reality. Research excellence and technology firms sit alongside small and medium-sized businesses experimenting without support, communities facing limited access to opportunity, and public institutions struggling to keep pace with change.

This matters because AI adoption will not succeed if it is only concentrated in already advanced organisations. It must become something that businesses, public services, educators, and communities can understand, trust, and use effectively.

One of the strongest messages from the Sprint participants was that of frustration. Participants recognised the strength of the ideas in the room, but also the familiar risk that good conversations do not always translate into action. Too often, momentum fades once an event ends. Responsibility becomes unclear. Investment remains uncertain. The same problems are discussed again months later.

AI adoption cannot rely on enthusiasm alone. It requires structure, leadership, and accountability.

That is why the idea of a place-based approach is so important. Sussex offers a credible starting point; it is a region with strong socio-economic assets, the infrastructure, clear challenges, and institutions capable of convening across sectors. Local authorities, universities, employers, and community organisations all have a role to play. The question is whether those efforts can be aligned into a shared plan.

From Literacy to Regional Leadership

A core part of that plan must be AI literacy.

Many people are now using AI tools every day, but far fewer are using them well. Too often, AI is treated as a shortcut – a way to draft text faster, search for information or automate simple tasks. That underestimates its value and increases its risks. Used properly, AI can support analysis, decision making, service redesign, and organisational learning. Used poorly, it can reinforce mistakes, weaken trust, and create fear.

At UKAI we have highlighted how AI literacy is not simply a technical skill. It is a leadership capability. It requires judgement, ethical awareness, and confidence. Leaders need to understand where AI adds value, where it introduces risk and how humans remain in control. Without that understanding, organisations will either move too slowly or adopt tools without the right safeguards.

Education and skills reform must therefore sit at the centre of the regional growth agenda. We cannot prepare people for an AI enabled economy through systems that move too slowly to keep up with technological change. Graduates should not require extensive retraining before they are productive. Adults should not be locked out of reskilling because learning pathways are too rigid. Businesses should not struggle to find the talent they need while education providers work to outdated assumptions.

The answer is not to narrow education to technical training alone. In an AI driven world, human capabilities become more valuable, not less. Critical thinking, communication, creativity, collaboration, and ethical judgement are not optional extras. They are the skills that will determine whether AI strengthens or weakens our economy and society.

The prize is significant. The regions that succeed in the age of AI will not only be those that build the most advanced technologies. They will be the regions that adapt fastest – embedding AI into workplaces, public services and education systems in ways that enhance human capability.

As we discovered, the South East has the assets to lead. Sussex could become the testbed for a model of responsible, inclusive, and practical AI adoption that can be scaled nationally.

But that will only happen if we move from insight to implementation. The task now is to build the coalition with the new Mayoral Combined Authority, set the standards, invest in skills, and create the confidence required for AI to deliver real regional growth.

Find out more

To find out more about the 2026 Chamber UK Get Britain Growing Conference, please either visit www.chamberuk.com/events or for partnership opportunities, please contact ben.mcdermott@chamberuk.com. This conference is organised in partnership with Silverstone Communications.

To find out more about UKAI: click here.

The Get Britain Growing Conference was sponsored by HP. Find out more: click here.

A new Curia and UKAI report argues that Sussex can become a testbed for responsible AI growth – but only if skills, trust, leadership, and delivery are treated as regional infrastructure.

Setting out how Sussex could become a regional testbed for responsible artificial intelligence adoption, the report argues that the area has the assets to lead but lacks the coordinated delivery model needed to turn ambition into economic growth.

AI and Skills – Building Capability for Regional Growth, produced as part of the Get Britain Growing Report Sprint Three, follows a conference at the University of Sussex which brought together industry, academia, and government to explore how the South East can stimulate and sustain growth. The report focuses on the third sprint, which examined the skills, structures, confidence, and governance needed to harness AI for public value and regional economic development.

From AI ambition to delivery

The central argument of the report is that the South East does not lack innovation, ideas, or institutional assets. It has universities, businesses, investment networks, and public sector bodies that could support AI adoption at scale. The problem is that these assets are not yet sufficiently aligned.

As the report puts it, the region’s strengths “are not yet translating into coordinated AI adoption at scale.” It warns that adoption remains “uneven, risk-averse, and poorly supported by existing skills and education systems,” with fragmented initiatives and limited accountability holding back progress.

“The outputs of this Sprint offer a credible foundation for regional AI leadership that can be tested locally and scaled nationally” Tim Flagg, Chief Executive, UKAI

This is where Sussex becomes important. Rather than attempting to solve the entire South East’s AI challenge at once, the report proposes Sussex as a practical starting point: a place-based testbed where councils, universities, businesses, and communities can develop, test and refine a coordinated model.

AI literacy as a leadership capability

One of the strongest themes in the report is the need to redefine AI literacy. The discussion does not treat AI skills as simply a matter for coders, data scientists, or technology teams. Instead, the report argues that AI literacy must become a core leadership and civic capability.

Many organisations already use AI tools, but the report suggests that use is often shallow. AI is too often treated as a shortcut, search engine or writing aid, rather than as a tool for analysis, decision support, and organisational learning.

“Many people are using AI tools daily, but few are using them well” Sprint participant

This matters because low AI fluency affects procurement, governance, workforce planning, and public trust. Senior leaders who do not understand AI’s capabilities and limitations are less able to make confident decisions about adoption. In particular, public sector organisations may default to caution, informal bans or highly restrictive policies because they fear reputational, ethical, or operational risk.

The report therefore calls for mandated practical AI literacy programmes for councillors, senior officers, education leaders, and commissioners. It also recommends a Sussex-wide AI literacy framework, defining baseline literacy, advanced fluency, and leadership capability.

Education must move faster

The report is equally direct about the education and skills system. It argues that current models are too slow for the pace of AI-driven change, with long qualification cycles, rigid accreditation processes and weak links between education and industry.

Graduates, the report notes, are often not work-ready, while adults who need to retrain struggle to access flexible learning pathways. In response, it calls for more agile skills provision, including micro-credentials, bootcamps, stackable learning and industry-shaped curricula.

“Education and skills systems are structurally misaligned with the pace of AI change” Peter Swallow MP, Member of Parliament for Bracknell and member of the Education Select Committee

Member of Parliament for Bracknell and a member of the Education Select Committee, Peter Swallow MP makes the broader case in the report that AI does not reduce the importance of education. Instead, he argues that it changes what education is for.

“AI does not signal the end of education, but it challenges us to return to its core purpose – preparing people not for a single job, but for continuous personal and professional development.”

That framing is important. Unlike several AI and education/skills reports, the Curia and UKAI report does not argue for a narrow technical curriculum. Instead, it places problem-solving, communication, critical thinking, ethics, and adaptability alongside technical competence.

The Sussex AI Coalition

The report’s main delivery proposal is the creation of a Sussex AI Coalition. This would bring together local authorities, universities, employers, small and medium-sized enterprises, community organisations, and UKAI to coordinate activity across the region.

The coalition would be supported by a shared Sussex AI Manifesto, setting out principles for responsible and inclusive adoption. The report also proposes appointing a Regional AI Lead or Chief AI Officer equivalent to coordinate delivery and own the regional AI action plan.

The proposed implementation plan is built around four delivery pillars: governance and leadership; AI literacy and leadership capability; education, skills, and workforce alignment; and shared infrastructure, trust, and inclusion.

This structure is important because it moves the debate beyond general support for innovation. It gives the region a delivery architecture – who should convene, what should be built, what should be measured and how quickly progress should happen.

Shared infrastructure and inclusion

A further recommendation is the development of shared AI infrastructure, including a proposed Sussex GPT. The report describes this as a regional knowledge and literacy hub, designed to support policy, best practice and AI learning in a way that reflects local needs.

The report also stresses that infrastructure should not only mean technology. It should include data, standards, training, coordination, and ethical assurance. Shared infrastructure could lower barriers for SMEs, social enterprises, and public bodies, helping organisations that may not have the capacity to build AI capability alone.

“AI adoption risks deepening existing inequalities if inclusion is not designed in from the outset.” Peter Swallow MP

Inclusion is a recurring concern. The report warns that AI could deepen existing inequalities if digital exclusion is not addressed. Barriers such as poor connectivity, limited access to devices and lack of confidence could prevent communities from benefiting from AI-enabled education, employment, and public services.

Analysis: the report’s strength is its focus on delivery

The strongest part of the report is its insistence that AI adoption is primarily not a technology problem. It is a coordination problem across various economic sectors, and across government. The report identifies the familiar pattern of strong discussions, promising ideas, and limited follow-through. By focusing on ownership, governance, and delivery, it moves the debate from aspiration to implementation.

The Sussex model is also sensible. Regional AI strategies can become too broad to act on, while individual institutional projects can remain too small to scale. Sussex offers a middle ground – large enough to bring together councils, universities, employers, and communities, but focused enough to test what works.

However, the report’s success will depend on whether the proposed coalition has real authority, resources, and accountability. A manifesto alone will not change behaviour. As with other Mayoral Combined Authority regions, a Regional AI Lead could make a difference, but only if the role has the backing of local government, employers, and education providers.

The report is right to place AI literacy at the centre of the agenda. Without confidence and understanding, adoption will either be too slow or too careless. The real opportunity is not just to train more technical specialists, but to build an AI-capable civic and business culture across the region.

Ultimately, the report argues that Sussex should not simply adopt AI. It should demonstrate how AI can be embedded responsibly into education, work, and public life. If that can be delivered, the region could offer a practical model for AI-enabled growth that other parts of the UK can learn from.

Find out more

To find out more about the 2026 Chamber UK Get Britain Growing Conference, please either visit www.chamberuk.com/events or for partnership opportunities, please contact ben.mcdermott@chamberuk.com. This conference is organised in partnership with Silverstone Communications.

To find out more about UKAI: click here.

The Get Britain Growing Conference was sponsored by HP. Find out more: click here.

Adama Ibrahim

UKAI Life Sciences Working Group (Panel Chair)

Following the publication of the Curia and UKAI AI Is Ready. Is the System? report, Adama argues the UK’s problem is not AI innovation but delivery – fragmented healthcare systems and slow adoption are the real barriers. She calls for aligned infrastructure, regulation, and culture to move from pilots to scalable impact in healthcare. (Photo: UKAI Life Sciences Working Group member, Adama Ibrahim chaired the Parliamentary session, kindly hosted by Shadow Equalities Minister, Mims Davies MP.)

When we convened these discussions in Parliament to help produce the AI Is Ready. Is the System? report, the objective was to move the conversation from pilots to scalable infrastructure, from policy statements to practical delivery.

The UK has not lacked ambition since the publication of the Government’s AI Opportunities Action Plan. We have committed to AI at scale and articulated a vision for research excellence and preventative healthcare. We have world-class scientists, innovative companies, and a health system rich in data. But ambition alone does not deliver outcomes. The pathway from strategy to routine clinical practice is complex – and, at times, uncomfortable.

AI does not simply automate existing systems. It exposes their imperfections.

Throughout these sessions, we heard repeatedly that the barriers to scale are not rooted in a lack of technology. They lie in fragmented governance, legacy infrastructure, unclear ownership, and cultural hesitation. In secondary care, clinicians face multiple logins and siloed data. In primary care, digital maturity varies by locality. Startups encounter data access processes that outlast their funding cycles. Boards hesitate because liability is not always clearly defined.

None of these issues are insurmountable, but they require coordinated leadership.

The Real Barrier: From AI Innovation to Healthcare Implementation

One of the strongest messages from industry during the course of this programme was that deployment, not invention, is the bottleneck. Even if no new AI tools were built from tomorrow, it would take years to embed what already exists. That should focus our attention. This means that by the time they are deployed, they may largely become out of date. Measurement, evidence generation, and clear pilot exit criteria are essential. Trust is built through lived experience in real clinical settings, not through PowerPoint presentations.

At the same time, the global environment is moving rapidly. International markets are experimenting with direct-to-patient AI-enabled tools. Investment is flowing toward jurisdictions that provide clarity, interoperability, and predictable regulation. If the UK allows caution to become delay, we risk losing not only economic advantage but also the opportunity to shape standards aligned with our values of fairness, transparency, and safety.

Prevention illustrates the scale of the prize. Genomic risk scoring and predictive analytics can identify vulnerability years before disease manifests. Yet prevention is still funded from the same constrained budgets as acute care. If we are serious about shifting from reactive to preventative medicine, our funding and evaluation models must reflect that intent.

Trust must also remain central. Concerns about bias and representation are legitimate. AI systems learn from data, and if that data fails to reflect the diversity of our population, outcomes will differ. Transparency in training data, subgroup performance monitoring, and meaningful public engagement are not optional extras – they are foundational to confidence.

From Insight to Action

Within the UKAI Life Sciences Working Group, our role is to bridge sectors. We bring together small and medium-sized businesses (SMEs), established industry, clinicians, and policymakers to ensure that solutions are co-designed and grounded in real need. Collaboration must replace transaction. Safety case methodology must evolve with adaptive AI. Infrastructure must be treated as a national asset, not a discretionary upgrade.

Above all, culture matters. Fear based environments do not innovate. Curiosity, openness, and shared learning accelerate adoption. We must normalise iterative improvement rather than demanding perfection before first deployment.

This report does not represent the end of a conversation. It marks the beginning of a more coordinated phase of work over the course of the year ahead. The challenge is not whether AI will shape healthcare. It is already doing so. The question is whether we shape that transformation deliberately – in line with British principles of safety, accountability, and equity – or allow it to happen unevenly.

The opportunity is significant. So too is the responsibility.

If we align infrastructure, regulation, funding, and culture, the UK can lead not only in discovery, but in delivery – improving outcomes for patients while strengthening our life sciences ecosystem for the future.

Get Involved

To find out more about the UKAI Healthcare and Life Sciences Working Group, contact Partnerships Director, Ben McDermott at benmcdermott@ukai.co.

Rt Hon Andrew Stephenson CBE

Chair, Curia, Health, Care and Life Sciences Research Group

Following the publication of AI Is Ready. Is the System? report by Curia and UKAI, Chair of Curia’s Health, Care and Life Sciences Research Group and former Minister of State at the Department of Health and Social Care, Andrew Stephenson writes that the NHS is well positioned to lead in AI-driven healthcare, but the challenge has shifted from innovation to implementation.

Across government, the NHS, academia, and industry, there is broad agreement that AI and advanced data science will transform healthcare and life sciences, particularly within the NHS. The science is advancing rapidly. British universities are among the strongest in the world. Our life sciences sector contributes more than £100 billion to the economy and supports hundreds of thousands of skilled jobs.[i] We have longitudinal health records, high GP registration, and a unique ability to link data across the life course. In many respects, we are better positioned than almost any nation, especially considering the advancements in the NHS.

And yet, as these discussions make clear, the central challenge is no longer invention. It is implementation.

From Innovation to Implementation: Why the NHS Must Move Beyond Pilots

Too often, innovation in the NHS remains confined to pilots. Promising technologies are tested, evaluated and praised – and then stall before reaching routine practice. The reasons are not mysterious. They include fragmented procurement, unclear lines of accountability, data governance complexity, workforce pressures, and, at times, a cultural instinct to equate the status quo with safety.

We must challenge that assumption directly. Doing nothing is not risk-free. In a health system and NHS facing rising demand, workforce shortages, and widening inequalities, standing still carries consequences of its own. Innovation, when properly evaluated and safely deployed, is not a threat to patient safety – it is an essential route to improving it.

Aligning NHS Regulation, Infrastructure and Growth to Deliver AI at Scale

Throughout these roundtables, three themes emerged repeatedly.

First, system readiness matters as much as technological capability. AI tools do not deploy themselves. They depend on infrastructure, workforce confidence, digital maturity, and governance that is proportionate rather than paralysing. Building the bridge from innovation to adoption requires effort on both sides.

Second, regulatory reform must strike the right balance. We must be safe, but we must also be fast and trusted. The regulatory framework for medical devices was not designed with adaptive AI in mind. We therefore need approaches that allow continuous monitoring, post-market learning, and clear accountability, without creating unnecessary delay. Businesses need clarity, boards need assurance, and patients need confidence.

Third, we must align economic growth with NHS transformation. Startups and scaleups cannot wait two years for data access while their runway expires. Equally, trusts cannot be expected to underwrite infrastructure without national support. If we want Britain to retain sovereign capability in AI-enabled healthcare, we must ensure that procurement pathways, data environments, and funding models enable responsible domestic innovation to scale.

Prevention and predictive medicine are particularly instructive. The science in genomics and risk stratification is advancing rapidly. Yet our funding structures in the NHS remain weighted toward treating illness rather than anticipating it. If we are serious about shifting from reactive to preventative healthcare, budgetary and accountability frameworks must evolve accordingly.

As Chair of Curia’s Health, Care and Life Sciences Research Group, my focus is on turning policy into practice. It is not enough to announce strategies. We must translate ambition into delivery at trust, system, and national level.

The discussions summarised in this report are candid – but practical. They highlight barriers to the adoption of AI in the NHS, but they also demonstrate appetite for change. Clinicians want tools that give them more time with patients. Innovators want clarity and partnership. Policymakers want solutions that improve outcomes and support growth.

Our task now is to convert shared insight into coordinated action. If we do so, the UK can become not just a leader in AI research, but a leader in responsible, system-wide deployment – improving patient care, strengthening our healthcare and life sciences sectors, and ensuring the NHS remains sustainable for generations to come.

References

[i] https://www.gov.uk/government/news/life-sciences-sector-plan-to-grow-economy-and-transform-nhs

However, while AI innovations are promising, the report says systemic barriers remain in translating these innovations into large-scale solutions across the NHS. The AI if Ready. Is the System? report, compiled by UKAI and Curia, offers a roadmap to overcome these barriers, aligning infrastructure, regulation, and investment. The recommendations outlined are not just healthcare-specific but also present significant opportunities for business growth and economic development within the life sciences sector.

The UK is renowned for its leadership in life sciences research and AI innovation. However, translating these strengths into large-scale, practical applications within the NHS remains a challenge. Despite numerous successful pilots and cutting-edge AI tools ready for deployment, systemic barriers in governance, regulation, and infrastructure are slowing their widespread adoption.

This report, a collaboration between UKAI and Curia, examines the key challenges and opportunities in scaling AI within the healthcare system, highlighting the vital need for coordinated efforts across industry, government, and healthcare providers. The findings are not just critical for healthcare reform but also for the broader economic agenda, offering businesses and policymakers a clear framework to drive growth in AI and life sciences.

Key Insights from the Report:

1. Unlocking the Potential of AI in Healthcare

AI’s potential in healthcare is undeniable, from reducing clinical workload to improving patient outcomes through predictive diagnostics and genomic medicine. However, the UK’s ambition must shift from experimenting with AI to fully integrating these innovations into healthcare infrastructures. The need for a robust digital ecosystem that allows for seamless data sharing, real-time monitoring, and scalable AI tools is urgent.

“To turn AI from a promising innovation into a healthcare revolution, we must align infrastructure, regulation, and funding. Only then can we achieve the transformative impact we need for both patients and the economy.” Rt Hon Andrew Stephenson CBE, Chair, Curia, Health, Care, and Life Sciences Research Group

“To turn AI from a promising innovation into a healthcare revolution, we must align infrastructure, regulation, and funding. Only then can we achieve the transformative impact we need for both patients and the economy.” Rt Hon Andrew Stephenson CBE, Chair, Curia, Health, Care, and Life Sciences Research Group

For businesses, AI presents a significant opportunity: by developing solutions that integrate with the NHS’s digital infrastructure, companies can position themselves as leaders in AI-driven healthcare transformation. This is especially true for startups and scaleups that can provide flexible, scalable technologies capable of addressing fragmented data systems and siloed digital environments within the NHS.

2. System Readiness: A Key Business Consideration

While AI technologies are advancing, the readiness of the healthcare system to integrate them is inconsistent. The report identifies the lack of interoperability and fragmented governance as major obstacles to AI adoption. To overcome these, the UK must treat data infrastructure and interoperability as national priorities.

At one of the Parliamentary events, host and Member of Parliament for Morecambe and Lunesdale, Lizzie Collinge MP championed the North West economy highlighting that “the UK’s ability to lead in AI-enabled healthcare depends on overcoming not just technical challenges but systemic barriers.

“By aligning AI with business and industrial strategy, we can ensure that the country remains at the forefront of healthcare innovation, driving both improved patient outcomes and economic growth”.

For businesses involved in digital infrastructure or healthcare IT solutions, there is a growing market for services that facilitate interoperability, data integration, and secure digital environments. By creating solutions that meet the NHS’s needs for unified, seamless digital systems, companies can support the transition to AI-enabled care while positioning themselves as key players in the digital health ecosystem.

3. Regulatory Agility: Balancing Innovation and Safety

Regulation plays a pivotal role in ensuring that AI tools are deployed safely within the NHS. However, as the report highlights, current frameworks are not designed to accommodate adaptive AI technologies. There is a need for a flexible, iterative regulatory approach that balances speed with safety.

“The UK’s future in AI-driven healthcare depends on collaboration across sectors. By ensuring clear governance and empowering clinicians, we can accelerate the responsible deployment of AI, enhancing both patient care and our global competitiveness.” Adama Ibrahim, UKAI, Life Sciences Advisory Board

“The UK’s future in AI-driven healthcare depends on collaboration across sectors. By ensuring clear governance and empowering clinicians, we can accelerate the responsible deployment of AI, enhancing both patient care and our global competitiveness.” Adama Ibrahim, UKAI, Life Sciences Advisory Board

For businesses in the healthcare and AI sectors, the regulatory landscape offers both challenges and opportunities. Clear and adaptive regulatory processes will enable faster deployment of AI tools, allowing businesses to innovate without being stifled by outdated regulations. This also presents an opportunity to engage with regulators to help shape the future of AI regulation in healthcare.

Strategic Opportunities for Business Growth

1. Infrastructure as a National Asset

The UK’s digital health infrastructure needs to be treated as a national asset. Investing in federated, interoperable platforms, and secure data environments (SDEs) will enable AI tools to function effectively at scale. For businesses, this presents an opportunity to partner with the NHS and government to build AI infrastructure, offering long-term growth prospects.

Moreover, AI developers can play a key role in ensuring that AI solutions are integrated into this infrastructure in a way that maximises their potential, improving both clinical outcomes and operational efficiency.

2. Aligning AI with Industrial Strategy

AI is more than just a tool for improving healthcare – it is a key driver of economic growth. The UK’s industrial strategy must align with the digital transformation of healthcare to ensure that the country remains a global leader in AI innovation. By focusing on developing AI tools that address specific NHS needs, businesses can contribute to the UK’s economic growth while improving the sustainability of the healthcare system.

The report makes it clear that responsible AI deployment within the NHS is not a trade-off between public service and economic growth. Instead, it is an opportunity to advance both, with businesses playing a key role in driving the transformation.

Companies that can navigate regulatory challenges, streamline procurement processes, and demonstrate measurable impact will be well-positioned to capitalise on this market.

3. Reimagining Prevention and Predictive Healthcare

AI-driven genomics and predictive medicine are reshaping how healthcare systems approach prevention. However, as the report highlights, the UK’s current funding models prioritise acute care over prevention, making it difficult to scale predictive tools.

For businesses in the life sciences and AI sectors, there is a clear opportunity to lead in the development of predictive models that can be integrated into existing healthcare systems. Additionally, companies can explore how to influence policy discussions around prevention funding and develop solutions that address the structural barriers in healthcare financing.

Conclusion: Moving from Innovation to Scale

The UK is well-positioned to lead the world in AI-enabled healthcare, but significant structural reforms are necessary to turn this potential into reality. By aligning infrastructure, regulation, and funding with the nation’s ambitions for AI, businesses can play a pivotal role in transforming the healthcare system while driving economic growth.

For businesses and policymakers, the challenge highlighted by this report is to work together to overcome the systemic barriers that are currently preventing AI from achieving its full potential. The opportunities for innovation, economic growth, and improving patient outcomes are immense. With the right strategy, the UK can lead the way in delivering AI at scale across healthcare systems, ensuring that innovation translates into long-term impact.

At a roundtable with leading firms including Snapchat, Meta, YouTube and TikTok on Monday 9 March, Technology Secretary Liz Kendall MP warned companies that failing to act decisively could result in further intervention from government.

The meeting comes amid growing concern about misogyny, harassment and image-based abuse on digital platforms, and follows a series of legislative and regulatory measures introduced in recent months.

Secretary of State for Science, Innovation and Technology, Liz Kendall said:

“Every woman and girl deserves to be safe online and we will stop at nothing to ensure the digital world is working for them, not against them.

“This Government has taken tough action to tackle intimate image abuse, deepfakes and the online harms women and girls face every day.

Now, tech companies must go above and beyond to use the tools readily available to them to make their platforms safer. If they don’t, these companies are not innocent bystanders – they are enabling abuse to thrive.

That is why we are asking Ofcom to report swiftly on how companies are complying, because better safety and better accountability go hand in hand.”

New legal powers targeting online abuse and deepfakes

The warning follows a series of recent government interventions aimed at addressing online violence against women and girls.

Over the past six months, ministers have taken steps to strengthen protections under the Online Safety Act, making intimate image abuse, cyberflashing and choking priority offences. These offences are now treated with the same seriousness as child abuse or terrorism in terms of platform responsibilities.

Earlier this year, the Prime Minister publicly criticised the AI platform Grok after illegal sexualised images of women and girls circulated on the site. Within days, the Government fast-tracked legislation to ban the creation of non-consensual intimate deepfakes.

Further legal requirements now mean technology companies must remove intimate images shared without consent within 48 hours of being flagged, shifting responsibility from victims to platforms.

Meanwhile, an amendment to the Crime and Policing Bill has created a new criminal offence targeting so-called “nudification apps” – AI tools that generate synthetic sexualised images of women and girls.

Ofcom expected to name platforms failing to act

Three months ago, Ofcom published guidance outlining measures companies can take to reduce online abuse, including:

• Prompts encouraging users to reconsider harmful posts
• Limits on coordinated pile-ons
• Stronger default privacy settings
• Hash-matching technology to detect and block intimate images

The regulator is now expected to report on which platforms are failing to comply with these measures.

The Government has urged Ofcom to publish its findings as soon as possible, enabling users to make informed decisions about which platforms are prioritising safety.

Women shaping the future of technology

Alongside regulatory action, the Government is also seeking to increase women’s involvement in shaping emerging technologies.

Later this week, Liz Kendall will convene the Women in Tech Taskforce, which aims to address bias in technology design and ensure women are involved in the development of future digital platforms.

The Government has also launched a public consultation on children’s digital wellbeing, inviting parents, guardians and young people to share views on how to strengthen protections across social media, gaming platforms and AI chatbots. The consultation will inform further policy decisions later this year.

Industry leaders call for cultural change in technology companies

Industry leaders say stronger regulation must be accompanied by deeper cultural change within technology companies.

Zahra Shah, Chair of the UKAI Women in AI Working Group, said:

“The Secretary is right to set this challenge. The moment for voluntary measures has passed. If we are serious about safety, it must be woven into the fabric of technology from the outset – not added as an afterthought when harm has already been done.

“Through UKAI’s work in Parliament and with industry leaders, the collective view is clear: regulation alone is not enough. We need a cultural shift inside these companies, where protecting women and girls becomes a measure of success, not a compliance burden.

“Britain has a choice: we can lead the world in responsible AI, or we can import the mistakes of the past. UKAI will work with government and industry to ensure we lead.”

As the regulatory landscape evolves, pressure is mounting on technology companies to demonstrate that safeguarding users – particularly women and girls – is embedded at the core of how digital platforms are designed and governed.