Tariq Hussain, UK Public Sector Lead at Dell Technologies, discusses leveraging sovereign artificial intelligence to enhance the UK’s leadership in innovation
Under its revised AI Opportunities Action Plan, the UK Government has showcased its commitment to the future of artificial intelligence (AI). The ambitious plan demonstrates a significant commitment to the development and deployment of Sovereign AI capabilities to deliver an “AI vision for Britain.”
The UK is the third-largest AI market in the world, after the U.S. and China, valued at $92 billion (£72.3 billion) in 2024. With over 3,700 AI companies, employing over 60,000 people and contributing £3.7 billion to our economy, the UK is already a world leader in AI. The opportunity is clear.
Yet competition is intensifying. To maintain its leading role, the UK needs a thriving domestic AI ecosystem that fuels innovation while addressing the growing demands for secure, sustainable, ethical AI solutions. As such, the AI Action Plan represents a defining moment in advancing the UK’s leadership in AI innovation.
The AI Action Plan prioritises secure and sustainable AI infrastructure, high-quality data and a skilled workforce, all wrapped up in safe and trusted AI development and adoption. The plan demands genuine partnerships across the public sector and industry to deliver on its ambitious goals. Therefore, the plan also represents an incredible opportunity for UK enterprises looking to start, scale or grow their business.
In early June 2025, Prime Minister Keir Starmer took his ambitions a step further during his keynote address at London Tech Week. Speaking to an audience of technology leaders, innovators and policymakers, Starmer outlined his vision for harnessing AI to build a better future for the UK.
Starmer emphasised the transformative potential of AI in tackling societal challenges, including improving healthcare outcomes, addressing climate change and boosting economic productivity. He called for a “mission-driven” approach to AI innovation, urging the UK to lead globally by embedding ethics, safety and trust into AI systems.
Sovereign AI’s role in private-sector progress
The Prime Minister’s plans to ensure that AI serves the public resonates with the goals of Sovereign AI, which seeks to balance technological advancement with national priorities and societal impact. (1) At its core, Sovereign AI is about equipping the UK with the tools to maintain control over critical technologies while reducing dependency on external AI infrastructures. This provides UK businesses with a powerful foundation for responsible innovation, scaling operations and delivering value both locally and globally.
The adoption of Sovereign AI by enterprises is increasing, with more organisations turning to on-premises AI solutions – particularly to support GenAI workflows within national AI ecosystems. These organisations often seek to adhere to strict regulatory frameworks, while aligning with national sovereignty requirements. By ensuring that critical data and AI systems remain under domestic stewardship, organisations can advance confidently, knowing their foundations are secure.
We’re already seeing the ripple effects of this strategy. Following the government’s initiatives, there has been a wave of investment commitments from private enterprises. Additionally, the first hosts of the flagship AI Growth Zones (AIGZs) are set to be announced this summer.
Designed as innovation hubs, these zones will offer streamlined planning, funding opportunities, and incentives, such as relief schemes, to help businesses thrive. More than just locations, they symbolise a fresh approach to collaboration between businesses and government, accelerating the adoption of advanced AI technologies. By driving billions in private investment and creating high-tech jobs, these zones will reinforce Britain’s position as a global leader in AI innovation.
This is the business imperative of Sovereign AI. By fostering an ecosystem where public and private sectors collaborate on shared goals, we create an environment in which enterprises can grow, innovate and excel. This collaborative approach is crucial for positioning the UK as a global AI powerhouse.
The foundation of collaborative AI innovation
Around the world, nations are exploring different models for implementing Sovereign AI. The AI Action Plan defines ‘Sovereign AI compute’ as compute owned or allocated by the public sector. The AI Action Plan recommends a 10-year investment commitment of Sovereign AI Compute. That includes expanding the capacity of the AI Research Resource (of which The Dawn supercomputer at the University of Cambridge, is part) twenty-fold by 2030.
This represents a significant expansion of the UK’s AI compute capabilities and will ensure that researchers and startups can access the necessary infrastructure to drive breakthroughs. However, the UK does not need to own or operate all the compute it will need. In fact, the AI Action Plan determines that Sovereign AI compute will almost certainly be the smallest component of the UK’s overall compute portfolio.
The UK’s standout approach lies in its emphasis on “government-with-industry” collaboration, designed to encourage cocreation and cooperation. The public-private collaboration advocated for in the AI Action Plan will enable businesses and governments to get the most from each other and play to their strengths. Governments can provide policy frameworks and financial support, while private enterprises can contribute expertise, innovation and speedy execution.
Turning AI ambition into tangible change
Sovereign AI goes beyond technological advancement – it lays the groundwork for addressing some of the UK’s most pressing societal and economic challenges. By aligning their objectives with national priorities, businesses can create targeted innovations with a meaningful impact. For example, the UK ranks healthcare, sustainable energy and education as priority sectors for AI-driven transformation.
However, the AI investment opportunities in the UK extend to financial services and FinTech, Manufacturing and Industry 4.0, as well as Data Science and Analytics. Businesses that align with these national priorities and investment opportunities are afforded a dual advantage. First, targeted innovations developed under these frameworks are more likely to secure funding, partnerships and public support. Second, localising innovation to address UK-specific challenges shields businesses from external geopolitical risks.
AI: Securing the future of UK innovation
The UK has firmly positioned itself as a global leader in AI, and the vision of Sovereign AI outlined in the AI Opportunities Action Plan represents a collective call to action. The UK Government has laid out a clear vision for the future, but it’s up to enterprises to bring that to life. By immersing themselves in this evolving ecosystem, businesses can take advantage of cross-sector collaborations, align with national priorities, and capitalise on the myriad opportunities AI presents.
