UK Government Cuts AI Investment IDR 26.4 Trillion In Budget Saving Efforts

Prime Minister Keir Starmer (photo:x @Keir_Starmer)

JAKARTA - The British government led by the Labor Party is designing a new strategy for artificial intelligence (AI) with a focus on budget savings, ahead of a crucial fall budget. This strategy puts priority on the adoption of AI technology in the public sector compared to direct investment in the industry.

Since taking power in July, the government of Prime Minister Keir Starmer has reviewed AI-related costs and decided to cancel an investment of 1.3 billion pounds (Rp26.4 trillion) planned by the Conservative government beforehand. This includes the cancellation of an investment of 800 million pounds for the development of a supercomputer at the University of Edinburgh.

Although the amount of 1.3 billion pounds is considered small in the global AI landscape, this decision has drawn criticism from industry leaders who think that Britain is less supportive of innovation. In comparison, France recently committed to investing 2.5 billion euros (Rp42.7 trillion) in the development of this technology in the country.

The UK government is also considering scrapping an office opening plan in San Francisco for the AI Security Institute, which was previously scheduled to open this summer. The decision is seen as a step to save costs amid increasing budget pressures.

The Minister of Technology, Peter Kyle, who was appointed in July, has sacked one of the founders of the AI Security Institute, Nitarshan Rajkumar, from his post as senior policy adviser. This move drew criticism from several parties who saw the dismissal as a strategic error.

Meanwhile, the government has recruited Matt Clifford, a technology entrepreneur, to formulate a new strategy to be delivered in September, ahead of the government's Fall Statement the following month. This strategy is expected to provide a new direction in the implementation of AI in the public sector, as an effort to increase efficiency and reduce operational costs.

The government's decision comes amid concerns that Britain may lose momentum in global competition in the AI sector, especially as other countries such as France amplify their investments in this sector.