As countries all over the world race to establish themselves as AI leaders, new research shows that the UK could soon fall behind.
According to new data by Liberty Comms, Vanson Bourne and Tech Funding News, the UK needs to take quick steps to tackle skills shortages, infrastructure gaps and regulatory barriers in order to stay ahead in the AI race.
Their Mind The Gap 2025 report revealed that whilst the majority (82%) of business leaders see the UK performing well on the global stage, only one in three (34%) see the UK as leading in AI innovation.
In addition to this, more than half (55%) agree the country is not moving fast enough to seize AI opportunities, with 51% saying that the UK government’s AI regulations fail to balance innovation and ethical safeguards.
A further 53% say that insufficient infrastructure is holding us back and many others cite skill shortages as a huge concern.
But what can the UK do to improve its reputation as an AI powerhouse? To find out, we asked the experts…
Our Experts
- David Barber, Director, UCL Centre for Artificial Intelligence & Distinguished Scientist at UiPath
- Durgan Cooper, AI Expert and Cybersecurity Adviser to the House of Lords
- Jane Smith, Field Chief Data & AI Officer at ThoughtSpot
- Peter Wood, CTO at Spectrum Search
- Richard Potter, CEO and Co-Founder at Peak, a UiPath company
- Cavan Fabris, Partner and Head of Data & Cyber at RPC
- Robert Whiteside, CEO at EmpowerRD
- Steffen Hoffmann, Managing Director of Bosch UK & Ireland
- Rav Hayer, Managing Director, UK and Ireland, and Head of BFSI, Europe at Thoughtworks
- Bill Conner, CEO at Jitterbit
- Jonny Murphy-Campbell, Commercial Director at Resolvable
- Chase Doelling, Principal Strategist & Director at JumpCloud
- Angie Ma, Co-founder at Faculty
For any questions, comments or features, please contact us directly.
David Barber, Director UCL Centre for Artificial Intelligence & Distinguished Scientist at UiPath
“The government must prioritise AI education and upskilling initiatives as, without a trained workforce to use it, the UK risks stalling in the AI race.
“Closing the gap is critical. That means embedding AI education across schools, universities and industry, not just as a one-off initiative, but as a long-term national priority. In classrooms, tools like ChatGPT should be embraced, not feared. Early exposure builds familiarity and competence before students hit the workforce. This will ensure the skills gap becomes narrower and the talent pool stronger.
“In business, training must be flexible, tailored and readily available with real-time support to smooth AI adoption on the ground. For employees, it’s reassurance. For employers it’s ROI. For the UK, it’s the difference between leading or lagging.”
Durgan Cooper, AI Expert and Cybersecurity Adviser To The House of Lords
“The UK risks falling behind in the global AI race, not through a lack of talent or vision, but due to fragmented infrastructure, slow regulatory clarity, and inconsistent investment. While the government’s stated ambition to become an “AI powerhouse” is admirable, progress is constrained by outdated data frameworks, siloed innovation ecosystems, and the absence of a coherent strategy linking AI with national security, digital skills, and industrial productivity.
“To improve its reputation, the UK must treat AI as critical national infrastructure—aligning investment in compute, connectivity, and cyber resilience. Regulation should evolve towards ‘intelligent oversight’: agile enough to support innovation, yet robust enough to ensure safety and accountability. Finally, partnerships between government, academia, defence, and industry should be deepened to translate research excellence into deployable capability.
“The UK excels at policy discussion; it now needs policy execution.”
Jane Smith, Field Chief Data & AI Officer at ThoughtSpot
“While data centres and GPU farms deliver jobs and supply chain spend, the real economic value – core model R&D, IP ownership, and strategic product decisions – appears to remain domiciled in the US.”
“If the UK wants more than construction sites, policymakers must tie investment to local R&D, IP rights, and commercialisation pathways. The investment should be an enabler for the UK tech industry, not a substitute for building local IP.”
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Peter Wood, CTO at Spectrum Search
“The UK has immense potential to reclaim its position as an AI powerhouse, but it must focus on translating research excellence into commercial impact. We’ve built world-class academic institutions, yet too much innovation still leaks abroad due to fragmented funding, slow regulation, and a lack of clear AI adoption pathways for businesses.
“The future depends on stronger collaboration between public and private sectors, particularly in scaling home-grown AI start-ups before they’re acquired by overseas giants. What’s overlooked is the UK’s ability to lead in ethical AI and applied intelligence embedding trust, transparency, and real-world utility into every layer of innovation.
“If we can make AI accessible not just to tech firms but to traditional industries, we’ll not only improve competitiveness but shape the global standard for responsible AI-driven growth.”
Richard Potter, CEO and Co-Founder at Peak
“Despite being the world’s third-largest destination for AI investment and home to pioneering researchers (who actually invented the field), the UK faces a perception crisis. Industry leaders increasingly view Britain as falling behind in AI innovation. This is troubling signal that threatens its competitive position.
“The solution isn’t more regulation or ethical frameworks; it’s removing financial barriers to scale. The UK excels at early-stage AI research but catastrophically fails at commercialisation. Our brightest innovations too often mature elsewhere because growth capital remains inaccessible.
“The UK government must urgently reform investment incentives. Raising lifetime EIS limits would unlock patient capital for AI startups navigating the expensive journey to profitability. Alongside this, increasing entrepreneurs’ relief thresholds would retain talent that currently relocates abroad for better wealth creation opportunities.
“Most critically, Britain’s fall from the top 20 global IPO markets represents a systemic failure. Without viable exit routes, institutional investors bypass UK AI ventures entirely. We need immediate reforms to public market taxation and listing requirements to attract foreign scale capital.
“The UK possesses world-class AI foundations, including exceptional universities, groundbreaking research heritage, and substantial early investment. What’s missing isn’t innovation but the financial architecture to transform breakthroughs into billion-pound businesses. If we can fix the capital pathways, Britain’s AI reputation will follow.”
Cavan Fabris, Partner and Head of Data & Cyber at RPC
“The UK wants to be an AI powerhouse whilst simultaneously being the world’s most cautious, ethically regulated AI developer. The reality is that it cannot be both.
“The US is winning the AI race by moving fast. China keeps pace through state coordination and mass deployment. The UK holds consultations about consultations.
“The UK’s fundamental challenge isn’t innovation – its data. The UK has created one of the world’s most restrictive data regimes whilst trying to build data-hungry technologies, financial data locked in silos, politically-untouchable health records, and a post-Brexit regulatory regime that is neither pro-EU, pro-US or even pro-UK. Meanwhile, the UK trains world-class researchers at its universities then watches them leave for Silicon Valley, or for funding rounds UK venture capital won’t write.
“The real and uncomfortable question is rather: Does the UK want to be an AI powerhouse, or does it just want to feel good about its approach to AI?
“True AI leadership means accepting deployment risks, regulatory vagueness, and market failures. The UK’s current path delivers excellent research, thoughtful frameworks, and international respect, but permanent second-tier status in the actual global AI economy.
“Until the UK is honest about what its willing to risk, others will keep building the systems the UK will eventually regulate around.”
For any questions, comments or features, please contact us directly.
Robert Whiteside, CEO at EmpowerRD
“If the UK wants to strengthen its reputation as an AI powerhouse, it must first ensure that innovation is not hindered by complexity and red tape. The current R&D tax relief framework, while designed to incentivise genuine research and innovation is seeing a year-on-year fall in engagement from the SME community as shown by the latest HMRC data, showing that it’s not having the desired effect. In a recent survey of our own, we found that more than half of businesses (52%) still see regulation as the main barrier to accelerating R&D.
“Streamlining R&D incentives, providing greater clarity around eligibility and reducing administrative friction would all send a strong signal that the UK is serious about backing innovation, not just talking about it. To mitigate the bad actors that were misusing the scheme, HMRC rightly increased the level of scrutiny on claims, however, given the drop in claim volume, it’s clear that we need to make R&D easier, fairer and more efficient. That means shifting from scrutiny that slows innovation to support that strengthens it. The UK already has the talent and ambition to lead in AI, now it needs the infrastructure and incentives to match.”
Steffen Hoffmann, Managing Director of Bosch UK & Ireland
“Growth is a key priority for the UK government, and when it comes to AI, we’re competing with nearly every advanced economy in the world. AI is already becoming an integral part of our lives, shaping the future of work and innovation across the UK and beyond.
“That’s why education and upskilling are crucial. We must ensure that workers across the UK – not just in the capital – have the confidence, knowledge and support to engage with AI responsibly and effectively.
“Bosch’s 2025 Tech Compass report found that over half of UK respondents believe AI should be a standalone school subject, with many adults recognising the importance of giving children a solid understanding of it. The government must ensure AI education is built into curricula and support all students as we transition into the AI era, preparing them with the skills needed for the future job market.
“The survey also showed that 61% of UK respondents have never received workplace training on AI, highlighting a major gap in skills support from businesses and institutions as society prepares for this era.
“Now is the time for government, educators and employers to work together to ensure people nationwide have access to the training they need to harness AI’s potential for a more prosperous future for everyone.”
Rav Hayer, Managing Director, UK and Ireland, and Head of BFSI, Europe at Thoughtworks
“The UK sits uncomfortably between the EU’s extensive oversight, and the US’s market-driven approach, creating a climate of uncertainty that paralyses even our best companies. Rather than fostering innovation, our reactive regulatory stance forces British firms to divert resources into compliance navigation, rather than R&D. This is the hidden tax on innovation that’s driving talent and ownership abroad.”
“To reclaim leadership, the UK must shift from reaction to proactive governance. Countries like Singapore and Brazil are proving that clarity, agility, and ambition in AI governance accelerate progress, not stifle it.The £14bn investment pledge rings hollow without a regulatory framework that inspires confidence. The UK needs policies that prioritise ethical AI development, robust data governance, and transparent frameworks that evolve with technology. Infrastructure matters, but regulatory certainty is the foundation upon which everything else is built.”
“The UK helped start this race. We can lead it again, but only if we move from ambiguity to clarity.”
For any questions, comments or features, please contact us directly.
Bill Conner, CEO at Jitterbit
“The UK has potential to lead in AI, but ambition alone isn’t enough. Some reports show that only a third of industry leaders see the UK as a global AI innovator, indicating that the all-too-common infrastructure gaps and regulatory uncertainty are holding progress back. Country-level collaboration with the US will help advance UK AI initiatives by leveraging global investments and critical partnerships.
AI isn’t just a modern-day space race – it’s also an AI trust race. The UK’s measured approach, emphasising ethical safeguards and oversight, is the right foundation; but the competitive advantages of speed and scale cannot be ignored. Without robust infrastructure and a clear strategy to attract talent, regulations risk slowing innovation rather than guiding it – while it accelerates elsewhere.
The path forward is about balance: building accountable AI systems that are powerful and reliable, while scaling infrastructure and nurturing talent. Countries that master both – rapid execution plus principled oversight – will define the next generation of AI leadership. The UK has the pieces; the challenge now is turning potential into tangible, trusted impact.”
Jonny Murphy-Campbell, Commercial Director at Resolvable
“A significant proportion of people believe the UK is not doing all it can to utilise AI in order to improve its reputation as an AI powerhouse. It’s important, however, to remember that whether the UK is doing enough to keep up is still subjective. The UK still has one of the largest AI markets in the world, but to continue being a leader in the race, the UK must balance innovation and ethical safeguards, and improve their infrastructure in order to advance.
“Collaboration is paramount for the UK when pushing to be an AI powerhouse, between government, academia, and industry. Investing in research is critical. Continued investment into cutting-edge research projects, from machine learning models to the application of AI in healthcare and finance, will ensure the UK stays ahead of the curve in AI advancements. Research investment drives innovation, and paves the way for informed experts and AI leaders.”
Chase Doelling, Principal Strategist & Director at JumpCloud
“To strengthen its place as a global AI powerhouse, the UK needs a coordinated approach that connects innovation with supportive infrastructure and policy. A JumpCloud report revealed only 34% of industry leaders consider the UK at the forefront in AI innovation, while over half (55%) believe the country is not moving fast enough to seize AI opportunities. Key barriers include insufficient digital infrastructure (53%) and regulatory frameworks that fail to balance ethical safeguards with innovation (51%).
“From an IT perspective, organisations are recognising that being “AI-ready” is now the top priority. Companies investing in foundational infrastructure, identity management and security frameworks are far better positioned to scale AI initiatives effectively. For the UK, this means a significant focus on modern, interoperable IT systems that can support AI adoption across sectors, from fintech to manufacturing.
“Progress will depend on effective collaboration between government, academia and industry. Streamlining regulations, improving infrastructure, and expanding AI reskilling efforts are all needed to address current gaps. By tackling these issues, the UK can improve its reputation and genuinely compete as a leading hub for AI innovation and commercialisation.”
Angie Ma, Co-Founder at Faculty
“Around two-thirds of executives report that generative AI adoption has caused tension and division – unsurprising, given that over 80% of AI projects fail. Success comes from treating AI as an operational discipline aligned with business priorities: embedding it into decision loops as a tool for repeatable, data-driven tasks, not just static analysis.
“For the UK to strengthen its reputation as an AI powerhouse, it must focus on turning ambition into operational reality – building AI-ready organisations that connect strategy with disciplined execution.
“To assess readiness, ask: is there a repeatable process, a clear outcome, and causal data? Design AI around the desired business outcome and the decisions that drive it. Integrate AI into people-led processes to build trust and enable action. Connect individual solutions into a system that transforms the process end-to-end.
“Strong safeguards are essential as AI becomes more deeply embedded in decision-making. AI literacy is also crucial – users must understand how AI works, its limits, and it’s reasoning to know when to trust it and when to defer to humans.”
For any questions, comments or features, please contact us directly.
