IT experts react to the government’s AI plan

The government has unveiled its AI Opportunities Action Plan aimed at boosting productivity and creating job opportunities in the UK

This week Prime Minister Keir Starmer announced that the government is to develop AI with a new strategy called the AI Opportunities Action Plan.

The new plan includes a £14bn investment in artificial intelligence to enhance the technology’s evolution and deployment across the UK, in public sector for example, as the government aims to improve productivity and create tens of thousands of jobs.

But will this new reform drive the “incredible change" Starmer has raved about?

To understand what his announcement really represents for the channel, CRN spoke with a gathering of IT specialists from QBS Software, VeUp, Cisco, Performanta, and Gartner.

CRN: How do you think this plan will impact the channel and your business?

Alex Tatham, strategic board advisor at QBS Software: “ Firstly, it's great news that the government is focusing on something positive and putting a spin on AI.

“There is plenty of AI work going on - but the channel is more focused on selling a bunch of server/Nvidia hardware and these large deals have been a strong input into the channel’s numbers in 2024.

“Without them, the enterprise numbers would look a lot worse!

“You only have to look at the HPE post from Matt Harris on LinkedIn today to realise how excited they are about the investment in datacentres.

“Many of these large deals will go direct, but the overall impetus will inevitably benefit the channel.”

Christian McCaffrey, CTO at VeUP: “The UK’s AI Action Plan is a significant step forward in positioning the UK as a global leader in AI.

“For VeUP, it presents exciting opportunities to help ambitious companies that are harnessing the potential of AI to scale.

“As businesses across industries increasingly look to adopt AI for efficiency and growth, we expect greater demand for the type of support that we can provide, from preparing for investment, building a product, developing a team to drive growth and more.

“The plan’s focus on investment and clearer regulations will help create an ecosystem that supports innovation and transformation, aligning with our own mission to help businesses harness the power of AI.”

Chintan Patel, CTO at Cisco UK & Ireland: “We welcome this high-profile intervention from the UK government, which promises to better equip organisations across the public and private sector to reap the benefits of AI.

“These organisations will need the capacity and capability to implement AI effectively, and at Cisco we’re helping our customers to seize this momentous opportunity.

“The government’s plan represents a significant opportunity for Cisco and our partners – it emphasises the critical role of digital infrastructure in enabling AI, and as AI adoption increases, organisations will require robust networks to support AI applications.

“Looking at healthcare for example, AI can aid in early disease detection and personalised treatment plans, which requires the transfer and process of data, underpinned by the network.

“Our latest AI Readiness Index indicated that only ten per cent of UK organisations feel prepared for AI, with gaps in infrastructure, data, governance, talent, and culture.

“There’s a substantial market opportunity for Cisco and our partner network here.

“We’re continuously hearing from our customers about their excitement for AI's potential, but they share that they need to be in a supportive network environment that fosters innovation and growth to succeed.

“Cisco is uniquely placed to power, protect, and advance the AI revolution for organisations, with the infrastructure to power AI, the unmatched breadth and scale of data to feed it, and a portfolio optimised to secure it.”

Guy Golan, co-founder, executive chairman & CEO of Performanta: “The fact there is extra focus on AI in the UK will catapult the industry and potentially position the UK as a pioneer in this space, especially around usability and agentics.

“As a result, I believe we will attract more investors which can boost the economy.

“The channel will be divided in two: those that sell services and those that innovate.

“Those who will sell services will have more profit margins but potentially a shift into more commoditised areas that will put price pressure in the market.

“Those that innovate will use the channel to expand and grow.

“Our business chose in September 2023 to be an innovator.

“As such you’ll see us using the channel more often moving forward.”

Frank Buytendijk, VP analyst at Gartner: “The plan is ambitious, and that is a great thing, thinking beyond straightforward business cases aiming at productivity improvement.

“Even if the goal, global leadership in AI, is aspirational, it may deliver economic growth and public service improvement. I think it makes sense to be very clear what kind of global leadership the UK is aiming for.”

Nader Henein, VP analyst at Gartner: “Having closely monitored the impact of policy decisions on the evolution of technology in the UK for the better part of the last two decades, I am cautiously optimistic.

“A concerted effort to drive innovation and the subsequent adoption in such a narrow band as AI - rather than technology transformation writ large - is an attainable goal.”

CRN: Do you think this new investment is sufficient to position the UK as a global AI leader?

Alex Tatham: “Not sure we will be leading globally in the UK - but it will put us ahead in Europe.

“In fact, this may be one of the best things about Brexit as EU regulation will stifle growth on the continent and the government's determination to focus on the positive benefits of AI will drive growth.”

Christian McCaffrey: “It’s definitely a positive development.

“This plan will lay a strong foundation and drive innovation in the short term.

“However, to truly lead globally, the UK will need to continue focusing on key areas like talent development, infrastructure, and fostering a supportive ecosystem.

“The UK has significant potential, particularly with its thriving tech scene and world-class universities.

“While other regions in the world, like MENA, are also making bold strides in AI, the UK’s ability to build on this momentum, attract top talent, and innovate across industries will position it to lead on the global stage.”

Chintan Patel: “The UK is already the leader of AI investment in Europe, with the AI Opportunities Action Plan further strengthening the UK's position as a global hub for AI and digital innovation.

“The UK boasts a thriving AI ecosystem that includes academia, engineers, entrepreneurs, and policymakers.

“The AI market in the country is valued at over £16.8bn, is the third-largest AI market globally, and the UK’s data economy as a whole is one of the largest in the G20.

“However, to fully capitalise on this investment, the UK needs to upskill the workforce.

“This requires collaboration between industry, government and educators.

“Strengthening international partnerships is also essential, such as facilitating research collaboration with leading academic institutions around the world.

“At Cisco, we’re helping drive this through the AI-enabled ICT workforce consortium where we’re assessing AI's impact on technology jobs and identifying skills development pathways for the roles most likely to be affected by AI.

“What is more, the Cisco networking academy (NetAcad) is integrating courses on AI to further improve its offering, to provide individuals the tools to be part of the AI revolution.”

Guy Golan: “I think it is a good start. As always, it is all about execution against the strategy and very clear ownership.

“That means that I would expect the slogans to shift into a reality by reporting on progress.

“Let’s not forget, the US and China are already in the race.”

Frank Buytendijk: “It will be hard to outperform and outspend countries such as China and the US in terms of hardcore technology innovation.

“It is important to make a choice.

“The EU is aiming to lead in AI (and technology in general) in terms of setting the benchmark for responsible use of AI and technology.

“What will be the UK’s focus? Certain types of fundamental research? Certain industries? Certain outcomes (public service improvement?).”

CRN: Beyond opportunities, do you think this new plan brings its share of challenges, for example when it comes to implementing and scaling such technology?

Alex Tatham: “Of course there will be challenges, but we must change the narrative from everyone being scared about change and the dangers of AI, to embracing its benefits and the inevitable broad changes it will bring to the workforce and working practices.

“Perhaps the biggest issue may be power consumption that large datacentre infrastructures will consume.

“Perhaps it’s no coincidence that the first AI Growth zone is on the atomic energy site in Culham, Oxon.”

Christian McCaffrey: “Scaling AI is inherently challenging, especially for businesses that lack the necessary tools or talent.

“The plan provides a strong starting point, but companies will need further support in terms of practical frameworks for implementation and scaling.

“Issues like data quality, access to infrastructure, and the talent gap will need to be addressed to ensure that AI adoption is both feasible and sustainable across the board.

“It’s not just about the technology; it’s about enabling businesses to effectively deploy and scale it.”

Chintan Patel: “Implementing and scaling AI technology does present challenges, but this is where Cisco and our partners add significant value.

“Our partners understand their customers' needs and can guide them to the right AI solutions.

“Addressing the skills gap and ensuring basic digital literacy is a challenge.

“Skills and digital infrastructure underpin whether AI can be effectively leveraged or not, so it’s vital that this is a top priority.

“Building public trust is critical.

“We must bring people along the AI journey and ensure they understand AI advancements, supported by appropriate regulations and safeguards.

“The UK’s approach to regulation should provide the right balance between having necessary guardrails while allowing innovation to flourish.”

Guy Golan: “Yes it does, whether it is on the ethical or on the usability side of it.

“You would also add politics into the mix and now it may be a bigger issue shifting the focus to undesirable places.”

Nader Henein: “Much of the focus on AI is automation, rather than augmentation, and with that comes the real possibility that there will be a net cost in jobs, which is uncharacteristic of a Labour government.”

CRN: The government also announced “AI Growth Zones” to help fast-track the building of AI infrastructure. Do you think we will see more companies open offices or relocate there?

Alex Tatham: “I am delighted that CI Group is based close by and is totally focused on building AI tools and sandboxes for clients to try the latest AI marketing tools.

“Just like a film studio, I am sure lots of companies will locate offices close to these datacentres including software businesses developing tools that use the datacentre infrastructure.

“It’s these tools around which QBS are building a new category to allow corporate resellers to offer enterprise licences via resellers so that end-users are controlling their purchasing and closing down the shadow IT being bought directly at end-users today.”

Christian McCaffrey: “The 'AI Growth Zones' are an exciting development, and I believe they’ll attract more companies looking to access cutting-edge AI infrastructure and resources.

“The success of these zones will depend on how well they collaborate between businesses, academic institutions, and government officials.

“If the zones offer the right conditions for rapid scaling, there’s potential for companies to relocate or set up offices there, particularly if they’re focused on advancing AI technologies.”

Chintan Patel: “Yes, the creation of ‘AI Growth Zones’ is likely to attract more companies to these areas.

“Regions like Cambridge and Oxford, which already have strong expertise and energy infrastructure, are well-positioned to benefit from this initiative.

“This regional growth will deliver economic benefits across the country and provide significant opportunities for our channel partners located nationwide.”

Guy Golan: “Eventually yes. Especially as the UK is already a strong hub for Europe.

Let’s also remember that many of these organisations are already here.

“The one thing I would be concerned about is start-ups.

“The government will need, beyond words, to attract talent and funding for startups to be well-settled in the UK.

“At the moment, it is not easy to be an innovative start-up, especially from taxation and incentives point of view.”

CRN: The new plan also aims to create 13,250 jobs. Do you think there is currently a skills gap in the AI sector?

Alex Tatham: “There are very few people in the channel or coming out of university that understand the opportunity.

“Creating trainings around tools and strategy implementation will be another fabulous opportunity for the channel.”

Christian McCaffrey: “There’s a clear skills gap in the AI sector, and the demand for qualified talent far outstrips supply.

“While the creation of 13,250 jobs is a positive move, we’ll need more targeted investments in training and education to ensure these roles are filled by people with the right skills.

“It’s not just about creating jobs; it’s about building a talent pipeline that can meet the demands of the AI industry.

“This will require collaboration between the government, educational institutions, and businesses to ensure a steady flow of qualified candidates.”

Chintan Patel: “There is a skills gap in the AI sector, and it’s something we must address for the success of AI initiatives, but more broadly on digitalisation skills.

“We need to work closely with industry, and have targeted efforts in education and training, to develop the necessary skills.

“Basic digital literacy needs to be built across the country and economy, and we need to nurture home-grown talent in AI.

“Cisco is committed to addressing this challenge with NetAcad, which is one of the world’s longest-running IT skills-to-jobs programmes.

“We partner with governments, industry and academia to help millions of people around the world gain access to the jobs of the future.

“We offer free AI courses and are particularly proud to support those from lower socio-economic backgrounds develop the skills they need to succeed.”

Guy Golan: “The skills gap is global.

“What I do see is a very young generation (straight out of university) finding their way here in the UK around AI.

“Immigration laws would be a challenge to attract talent from all over Europe. And talent is what will create more jobs.”

Frank Buytendijk: “There is certainly a skills gap, and that may continue for a while.

“But things that are currently a specialism, such as prompt engineering will move away as well, as AI becomes easier to operate.

“Where prompt engineering is on the use side, AI of course also has a development side; relying heavily on mathematical knowledge.

“At the same time, other jobs will emerge, e.g. AI therapists that know how to steer models with new data in a more desirable direction, or the field of anthrobotics, that studies the relationship between people and machines.

“AI ethics, in the meantime, is now a mainstream topic.”

CRN: What measures do you think the government should implement next?

Alex Tatham: “I would incentivise business with AI grants/tax incentives to invest in AI software and strategy.

“Allow companies to use their apprentice levy to train a new generation of AI skilled individuals (of all ages!).”

Christian McCaffrey: “Looking ahead, I think the government should focus on facilitating greater cross-industry collaboration, especially between start-ups, scale-ups, and larger enterprises.

“Establishing clear AI ethics and regulatory frameworks will also be crucial to ensuring that AI is developed responsibly and safely.

“Additionally, investing in AI education and training programmes, from university to upskilling initiatives, will be essential to closing the talent gap and preparing the workforce for the future.”

Chintan Patel: “The government should focus on understanding and addressing the underlying digital infrastructure needs to enable companies to leverage AI effectively.

“This requires a comprehensive digital infrastructure dialogue between business and government to identify and meet these needs at scale.

“Focus should also be on retraining and upskilling the workforce to work alongside AI. This involves comprehensive training programmes to upskill the current workforce and prepare future talent.

“The UK government's digital skills council, which I was a member of, does just this and helps facilitate collaboration between industry and government.

“Additionally, industry associations like Future.now and Skills England can play a crucial role to convene across industry and the education sector, and there is an opportunity for government to leverage existing digital skills programmes such as NetAcad even more.

“The government also needs to ensure security is front and centre of AI, to help address the growing safety and security concerns associated with the technology.

“Cisco is pioneering the industry to enable enterprises to develop, deploy and secure AI applications with confidence, with the recent announcement of Cisco AI Defense, a pioneering solution to enable and safeguard AI transformation.”

Guy Golan: “I think the government should take measures to reduce AI costs, and by doing so encourage acceleration.”

Nader Henein: “We expect to see regulation, not only to protect citizens from high-risk AI systems (in line with the EU AI act), but also to either shield or compensate skilled office workers when their work-product is used to train the AI models that would ultimately replace them.”