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UK Faces Falling Behind in Global AI Race Without Boosting Data Center Investment, Warns Google

Google warns that the UK risks falling behind in the global AI race unless it accelerates the construction of data centers and allows broader use of copyrighted materials in AI models. According to research, the UK ranks seventh globally in AI readiness for data and infrastructure. Google calls for urgent policy changes to boost the country’s AI competitiveness.

Debbie Weinstein, Google’s UK managing director, acknowledged the government’s recognition of AI’s potential. However, she stressed the need for more proactive policies to secure the UK’s leadership in AI. While AI investments are booming worldwide—driven by innovations like ChatGPT and Google’s Gemini—Weinstein warns that without action, the UK could lose its edge.

Google
Source – thetimes.com

Key AI Projects Face Funding Cuts

Despite the global AI boom, key government-backed AI projects in the UK have faced funding cuts. Labour recently scrapped an £800 million plan to build an exascale supercomputer, essential for advanced AI research. They also abandoned a £500 million AI Research Resource project. Google, however, remains optimistic about the government’s upcoming AI action plan led by Matt Clifford, hoping it will provide a clear vision for UK investments in AI.

In its forthcoming report, “Unlocking the UK’s AI Potential,” Google suggests establishing a national research cloud. This publicly funded cloud would provide essential computing power and data to startups and academic institutions, both crucial for developing AI models like ChatGPT. The report also highlights the UK’s struggle to attract data center investments, a critical component in the global AI landscape.

Google
Source – foxbusiness.com

Copyright and Regulation Reforms Needed

Google’s report calls for a relaxation of UK copyright laws to support AI development. It suggests that the government should revisit its stance on text and data mining (TDM). This practice allows the copying of copyrighted materials, like news articles and academic papers, for non-commercial research purposes. Google advocates extending TDM to commercial use, a policy the government abandoned in 2024 due to concerns from the creative and news industries.

Additionally, the report encourages “pro-innovation” regulation. Google supports the current regulatory framework, where AI oversight is managed by existing public regulators such as the Competition and Markets Authority. The company urges the government to build on these regulations rather than creating new ones, ensuring AI’s development in the UK remains agile and competitive.

The government is now drafting an AI bill that may include binding agreements for AI model testing and establish the AI Safety Institute as an independent government body. As AI legislation moves forward, the government aims to strike a balance between unlocking AI’s potential and ensuring public trust in its safety.

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