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Beyond the ‘Silicon Kingdom’ slogan: Can £150bn in US tech money actually fix Britain’s productivity problem?

4 0
20.09.2025

By Emmet King

The government’s announcement of more than £30 billion in AI investment is being trumpeted as a transformative moment for Britain’s digital future.

At its heart, the deal signals more jobs, more data centres and more research capacity within our borders. It means the next wave of AI breakthroughs in medicine, transport, logistics and beyond are more likely to happen here than overseas.

For ordinary people, that translates into better services, fewer administrative bottlenecks in the NHS, new opportunities and a degree of assurance that Britain will not be left behind as the world’s economies digitise at pace.

But the real test is whether it will deliver what Britain lacked for more than a decade: meaningful growth.

The Office for Budget Responsibility recently warned that Britain’s productivity has fallen, a sobering reminder that high employment rates alone are not enough to secure prosperity.

AI can help turn that around. In theory, better tools, faster decision-making and more efficient processes should lift output per worker. Imagine a hospital where clinicians spend less time filling in forms and more time treating patients, or a supply chain that adapts instantly to shifting demand.

Yet technology on its own doesn’t guarantee gains. The potential is there, but it’s the execution that is vital.

The investment is, by British standards, an enormous sum of........

© LBC