UK (Parliament Politics Magazine) – British AI firms largely excluded from government talks, prompting criticism that Labour risks undermining the UK tech industry.
As reported by The Telegraph, Labour faces backlash for neglecting UK tech companies, even as the Prime Minister, Sir Keir Starmer, promises to convert the nation into an AI powerhouse.
Which UK and US firms were invited to AI talks?
Officials have created new working groups with the creative and tech sectors to tackle AI’s impact on copyright laws.
According to media reports, just one British AI company, video maker Synthesia, has secured a spot at the talks. The attendee list features major US companies, including Amazon, Apple, Meta, Nvidia, and OpenAI.
The gap has sparked criticism that the British government is ignoring UK tech, favouring US companies.
What did creative experts say about UK AI policy and big tech?
A creative industries source stated,
“Not content with hollowing out the creative sector in favour of Big Tech, it seems the Government is choosing to favour the interests of US AI giants over UK startups and challengers.”
They added,
“This blinkered attitude to engagement makes a mockery of the Government’s supposed commitment to ‘AI Sovereignty’, with UK-based generative AI firms already put at a massive competitive disadvantage by the ability of Big Tech to seemingly ignore UK law at will.”
The creative industries insiders stated,
“Ethical AI firms are willing to pay for the creative content that fuels their models, but the Government seemingly isn’t interested in this perspective.”
They said,
“Ignoring the UK creative and tech sectors in policy development will guarantee that the value of AI is realised, and taxed, in the US.”
How did the Government AI bill spark backlash from creatives?
The government created new working groups following last month’s disputed Data Bill.
The legislation drew heavy criticism from high-profile figures in the creative industries, including Sir Elton John, Sir Paul McCartney, and Dua Lipa. They warned that AI firms could exploit copyrighted works without compensation.
The House of Lords delayed the bill after peers, led by Baroness Kidron, brought an amendment requiring tech companies to reveal their use of copyrighted material. The proposed amendment was rejected by the government, citing a separate consultation on copyright.
The first two sessions of the working groups are complete, with a third scheduled for early next month. The last working group meeting will include TechUK, ensuring its members’ perspectives are heard.
What did Baroness Kidron say about UK AI representation?
Baroness Kidron, a filmmaker who directed Bridget Jones: The Edge of Reason, called it “beyond disappointing” that just one British AI firm was included.
She said,
“We cannot grow our AI sector if the Government continually offers preferential treatment to US companies. It is as if they have not understood the last two decades in which Silicon Valley transfers economic benefit offshore, nor the declared needs of UK companies to benefit from being headquartered in a data-rich, innovative and creative nation.”
Ms Kidron added,
“Ultimately, the Government will have to find a national story for tech. At the moment, they are slaves to an American narrative.”
What did Ausrine Skarnulyte say about US firms dominating AI policy?
Ausrine Skarnulyte, CEO of UK AI startup Voice Swap, stated,
“There is a real risk that the chosen US firms, with their deep funding and budgets, will end up setting the terms of debate, leaving UK companies to adapt to rules they had little hand in shaping.”
She added,
“If the Government is serious about ‘AI sovereignty’, then UK AI businesses need to be in the room.”
What did the government spokesperson say about UK and US AI company engagement?
A government spokesman denied giving priority to US tech over UK firms.
They said,
“A range of British voices have been contributing to this work, as part of close engagement with both the creative industries and the AI sector to drive AI innovation and ensure robust protections for creators.”
They added,
“We are bringing together both British and global companies, alongside voices beyond the AI and creative sectors, to ensure we can capture the broadest possible range of expert views as we consider next steps.”
Key facts about the UK AI industry
The UK AI market is valued at £72bn in 2024. It is projected to reach £1tn by 2035, with AI companies growing 600% in the last decade. AI adoption varies, with 79% of Brits using generative AI but only 15% of UK businesses implementing AI.
The industry backs 360,000 jobs across 3,700 firms and contributed £5.8bn to the economy in 2023, with AI jobs offering salaries 20% higher than non-AI roles.
Major UK AI firms are:
- Synthesia
- Wayve
- Quantexa
- ElevenLabs
- Stability AI