The UK government announced a major artificial intelligence package aimed at scaling domestic technology firms, strengthening cyber defenses, and managing biological risks.
Investments in AI biosecurity and cyber defense
The package establishes a National AI Biosecurity Initiative that includes £100 million for an AI Biosecurity Lab designed to detect and monitor biological threats, alongside £65 million to enhance bio surveillance and develop medical countermeasures for priority pathogens. The lab will also receive up to £200 million in AI model credits from OpenAI and Anthropic, alongside partnerships with Google DeepMind and London-based Basecamp Research.
The government is allocating an additional £120 million to the AI Security Institute to test new AI models and establish technical standards. Another £60 million will fund a National Cyber Shield leveraging agentic AI for cyber defense, which includes a £25 million challenge fund for innovators. A further £70 million will go toward establishing the National Exposure and Real-Time Vulnerability Centre to identify infrastructure risks.
Sovereign AI and domestic hardware
To cut reliance on overseas technology, the plan provides an additional £60 million for the Sovereign AI Fund to back UK AI firms, expanding its scope into Physical and Industrial AI, robotics, and advanced manufacturing. Another £60 million will back the Sovereign AI R&D Procurement Scheme for healthcare and AI assurance projects.
Hardware investments include £18 million for a new UK Advanced Chip Design Academy, alongside new AI chip design capability in Edinburgh. In Manchester, the National Cyber Security Centre will establish an AI Cyber Security Centre of Excellence to train government personnel in AI and security skills.
Economic research and national strategy
The initiative sets aside £10 million per year to examine how AI will affect jobs and industry, plus an additional £23 million over three years for the AI Economics Institute to study productivity, living standards, and economic impacts ahead of the UK's G20 Presidency. An additional £15 million will fund an AI Challenge Prize targeted first at health innovations.
AI Minister Kanishka Narayan said Britain cannot afford to rely entirely on technology built overseas and must build the critical capabilities needed to protect against emerging biological and cyber risks. Chancellor John Healey stated the strategy seeks to ensure that workers are not left behind while securing national interests.
Key facts and where they come from
- The UK is funding an AI Biosecurity Lab with £100 million and providing £65 million for bio surveillance.
including £100 million for a world-first AI Biosecurity Lab (AIBL) to apply AI to the detection and surveillance of biological threats, and £65 million to strengthen bio surveillance
- The AI Security Institute will receive an additional £120 million to test AI systems and develop technical standards.
An additional £120 million investment in the AI Security Institute to ensure the UK remains at the forefront of understanding AI capabilities and risks through its testing and research
- A £60 million National Cyber Shield will use agentic AI to bolster national cyber defense.
Investing £60 million into a National Cyber Shield that will use agentic AI to improve the UK’s cyber defences, including a £25 million challenge fund
- The Sovereign AI Fund will receive an additional £60 million to invest in British AI companies.
An additional £60 million for the Sovereign AI Fund to enhance its ability to invest directly in promising UK AI companies, to support them to scale and succeed here.
- The UK is committing £18 million to establish the UK Advanced Chip Design Academy.
Building up the UK’s AI hardware capabilities with £18 million to support a new UK Advanced Chip Design Academy
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