UK Bets Big on AI, Quantum Computing, and Cybersecurity to Drive Economic Future

The UK’s Modern Industrial Strategy: A Focus on AI, Quantum Computing, and Cybersecurity

The UK government has set an ambitious course to elevate compute and artificial intelligence (AI) capabilities to a level of national importance comparable to GDP. Central to this vision are frontier technologies—AI, quantum computing, and cybersecurity—that will form the backbone of the country’s economic and industrial transformation over the next decade.

This strategy builds on previous government initiatives, including the AI Opportunities Action Plan released earlier this year. The goal is clear: by 2035, the UK wants to rank among the top three global R&D superpowers and foster a tech sector valued at $1 trillion. Achieving this within ten years requires a break from the UK's usual short-term outlook and a shift toward more active government involvement in technology development.

Strategic Priorities in Technology

AI and quantum computing are expected to underpin the future’s leading companies. However, these technologies depend on resilient cybersecurity innovations to protect the infrastructure from disruption. The government’s Digital Technologies Sector Plan highlights the need to:

• Support growth in the AI sector and establish new technology clusters.
• Drive investment in the cybersecurity sector to encourage innovation.
• Address challenges that limit the adoption of new technologies.

The UK’s tech sector is already significant, valued at £1 trillion ($1.4 trillion), ranking third globally after the US and China. The government’s plan sets ambitious targets for AI adoption:

• By 2030, develop several AI growth zones.
• Upskill 7.5 million people to effectively use AI.
• Increase AI research capacity by twenty times.
• Support 250 cybersecurity companies and 28 spinouts through the CyberASAP accelerator program.

Challenges and Considerations

While the UK has notable strengths in AI and cybersecurity expertise, there are concerns about retaining homegrown tech businesses. Historically, many UK technology firms have been acquired by foreign companies, such as Google’s purchase of DeepMind and Softbank’s acquisition of Arm. These companies remain UK-based but generate profits internationally, raising questions about long-term technological sovereignty.

Another challenge is the scale of government funding. Tech sectors often operate with budgets in the hundreds of billions, while UK government programs currently allocate tens of millions. This funding gap may limit the growth potential of domestic startups and scale-ups.

There is also the question of how well AI advancements will benefit the broader UK economy. According to Cisco’s UK AI Readiness Index, only 10% of UK organizations are fully prepared to utilize AI effectively. Cisco’s UK and Ireland CEO, Sarah Walker, emphasizes that successful AI adoption depends largely on addressing workforce skills gaps.

She points out that nearly every job function will require AI literacy soon, making upskilling essential. This upskilling must be equitable, ensuring no demographic or region is left behind, so economic disparities do not widen.

Final Thoughts for Government Professionals

For those working in government, the UK’s industrial strategy outlines clear priorities for technological development and workforce readiness. Success will require effective coordination between public programs and private sector initiatives, with a focus on:

• Expanding AI and cybersecurity research and development.
• Supporting domestic tech companies to grow and remain UK-based.
• Implementing inclusive upskilling programs to prepare the workforce.

To support these efforts, policymakers and public sector leaders may find value in targeted AI training resources that help build digital skills across all levels of government and industry. For practical courses and upskilling options, explore Complete AI Training’s courses by job role.