Budget 2023: What was said about AI?

UK chancellor, Jeremy Hunt, announced a range of financial measures to support Britain’s role as an AI hub, designed to kick-start the nation’s stagnant economy.

The UK chancellor, Jeremy Hunt, believes technology is essential to revitalising Britain’s stagnant economy and returning it to growth. The minister, who has his eyes on 10 Downing Street, used the 2023 budget to deliver stability and reassurance while strengthening the country’s position in AI and quantum computing.

One of the most exciting announcements was the launch of an “AI sandbox,” a programme that will trial faster approaches to help AI businesses get their products to market. The initiative will work with the Intellectual Property Office to clarify IP rules so innovators can access the data and algorithms they need without infringing on others’ rights.

The sandbox will also offer guidance and support on ethical and regulatory issues, such as data privacy, security, bias, and accountability. The goal is to progress AI responsibly and lead in global standards over the coming decade.

Commentators believe the AI sandbox model will boost UK innovation and competitiveness and help it become a global leader in the industry. According to Tech Nation, UK-based AI companies raised £2.3 billion in 2020, more than any other European country. The report also ranked London as the second most important global hub for AI after San Francisco – a remarkable achievement.

Hunt also used the budget to introduce another initiative to foster excellence in research: the £1 million Manchester Prize, which the government will award annually for ground-breaking research in artificial intelligence. The reward is named after Manchester University, where the great WWII computer scientist, Alan Turing, did a lot of his work.

According to Budget 2023, the prize will be available to researchers in academia and industry across the UK. Grants will be available for multiple AI-related areas of study, including machine learning, robotics, natural language processing, computer vision and large language models.

The chancellor also used Budget 2023 to announce the UK’s “quantum strategy.” Ministers promised an additional £2.5 billion to kick-start the industry and move it from the realm of science fiction to reality.

Quantum computing uses quantum physics to store data and perform calculations at speeds far beyond conventional computers. It has the potential to transform the economy and improve existing AI systems by enabling superior optimisation, machine learning, and natural language processing. It may let you add a chat feature to a website that can answer any question immediately.

Ministers will use the new fund to support several initiatives to make the UK a leader in the quantum space. Money will go towards building a national quantum computer centre, developing a network of quantum hubs across universities, establishing a quantum skills academy, and creating a quantum innovation fund.

There will also be further investments in a national supercomputer, which is essential, according to the government. “Because AI needs computing horsepower, I today commit around £900 million of funding to implement the recommendations in the independent Future of Compute Review for an Exascale supercomputer,” Hunt said.