Government unveils major AI investment package to drive UK growth and create thousands of jobs

The Government has announced a comprehensive package of AI investments and reforms designed to accelerate economic growth, support national regeneration and enhance the UK’s position as a world leader in AI.

By placing AI at the heart of the UK’s modern industrial strategy, ministers said the program will unlock billions of pounds of private investment while creating new opportunities for businesses, researchers and local communities. Central to this announcement is the creation of a major AI growth area in South Wales, developed in partnership with Vantage Data Centers and Microsoft.

The precinct – which spans multiple sites along the M4 corridor, including the former Ford Bridgend engine plant – will attract £10 billion of private investment and create more than 5,000 jobs over the next decade. It will serve as an infrastructure hub for artificial intelligence, research and advanced digital industries, with other areas expected to launch in other regions.

Each growth area will receive £5 million in government funding to help local businesses adopt AI technologies and develop specialist skills in their workforce.

Sachin Agrawal, managing director of Zoho UK, said the government’s commitment to AI was “timely and visionary”, and was essential to ensuring the benefits of innovation were distributed fairly across the country. However, he warned that companies must complement their accreditation with the right culture, skills and governance.

“For companies, the real opportunity lies not only in adopting AI tools, but in developing the skills, readiness and governance to apply them responsibly at scale,” he said. “Familiarity with AI and robust data protection standards will be essential to ensure initiatives are credible and designed to deliver long-term impact.”

Structured implementation — with clear pilot programs backed by automation, security and strong oversight — can help organizations move beyond “experimentation” and generate sustainable competitive advantage, Agrawal said.

To keep UK researchers and startups at the forefront of global AI development, the government is also launching a program to expand free and low-cost access to computing, with up to £250 million allocated to help train advanced models and accelerate scientific breakthroughs.

Alongside this, ministers announced a £100 million pre-market commitment that will allow the government to act as an early customer for UK AI hardware start-ups. The scheme is designed to support home-grown chip innovation and ensure British-designed devices are integrated into the next generation of data centres.