The Economist editor
@ArchieHall says Britain may have built itself into one of AI’s easiest economic targets by relying on service exports while lagging at adopting technology:
"I'm pretty concerned about where Britain could end up, and I think that's evocative of where a lot of non-US rich world economies could end up in a world where AI is more economically disruptive."
"You have an economy that's very, very services exports dependent. Law, finance, insurance. And it's not a vastly dynamic economy. It's not been incredibly successful adopting technology over the past couple decades."
"More nimble AI-enabled competitors could very, very easily eat away at the export base of a lot of those services companies that really power the British economy."
"Britain does have a pretty strong AI sector, but it's not huge, and most of the British economy is things that are not AI and things that are pretty bad at adopting tech."
@TheEconomist
I am increasingly frustrated about the state of conversation about AI in the UK. It feels like we are in never ending cycles of deluded thinking. Under current trends, Britain will be defenceless against the transformative effects of AI and have no leverage over development at the frontier.
We are the most exposed economy to AI in the world. We have very little data centre capacity and few credible plans to expand – and our high energy costs mean we would struggle to even if we tried.
I am publishing a paper today on what the UK should do to build that leverage, let the economy capture value from AI and prepare the state to adapt, however AI develops.
The three strategies are as follows:
1. Build the infrastructure that gives us leverage. Fix the grid, fix planning, make Britain a place frontier AI can run.
2. Let the economy capture the value of AI. Reform the regulatory, labour and talent barriers that stop British firms adopting AI.
3. Build a state that can adapt to a changing world. Build a tax base that survives the labour market changing, public services that use AI to deliver better, and capacity to weather the upcoming geopolitical storms.
Two years ago, we published a similar report on AI - many recommendations of which ended up in the action plan. I remember feeling hopeful, but sadly the fundamental problems facing the country on AI have not shifted. I truly hope that this week of momentum culminates in action. There’s still a narrow path for the UK, but everyday that path is narrowing.