UK economy could get a £550 billion boost from AI by 2035, Microsoft claims

A new report commissioned by Microsoft suggests that the UK economy could see a significant boost of £550 billion by 2035 if the country embraces artificial intelligence (AI) and cloud technology. The report, titled Unlocking the UK’s AI Potential, claims to highlight several ways the technology can benefit the UK economy. These include increased productivity, improved public services, and the creation of new jobs.

The study, conducted by consultancy Public First, surveyed over 1,000 senior business decision-makers and used data modelling techniques. It suggests that for every £1 invested in digital technologies and skills, the economy could grow by £5 over the next decade.

The authors says the UK is already well-positioned for AI leadership, boasting the most advanced tech sector in Europe (second only to the US globally). The government’s National Strategy, launched in 2021, aims to solidify the UK’s position as an “AI superpower” within the next decade.

However, the report also warns of potential roadblocks that could hinder the UK’s development. These include:

• Infrastructure limitations: The UK lags behind other countries in digital technology infrastructure, including data centre capacity and access to powerful computer chips.
• Lack of commercial awareness: Many businesses, particularly small and medium-sized enterprises (SMEs), haven’t adopted cloud computing or AI tools yet.
• Skills shortage: There’s a growing demand for workers with digital skills, including data analytics, IT, and emerging AI-specific skills like prompt engineering.

The report proposes several solutions to address these challenges:

• Increased investment in data centre infrastructure and advanced computing resources.
• Initiatives to raise awareness and encourage businesses to adopt the technologies.
• Investment in retraining and upskilling programs to equip the workforce with the necessary skills.

Microsoft has pledged to play a role in addressing these challenges. They’ve announced a £2.5 billion investment in skills, security, and data centre infrastructure in the UK. This includes plans to acquire over 20,000 advanced GPUs by 2026 and significantly expand their data centre footprint in the country.

The report suggests that AI can have a positive impact beyond just economic gains. Strategic use of AI in the public sector could save the UK £17 billion by 2035, enough to fund salaries for over 330,000 nurses. AI is already being used in the NHS for early cancer and disease detection, potentially saving an additional £500 million by 2030.

The report also claims to dispel concerns about AI replacing jobs. It argues that AI will likely create new job opportunities, particularly in areas like data and prompt engineering, and help existing workers become more productive.

The report concludes by saying that the UK is well-positioned to capitalise on advancements in AI, particularly in sectors like finance, healthcare, and science. By taking decisive action to address the identified challenges, the UK can unlock its full AI potential and reap the economic and societal benefits it offers.