LONDON — U.K. Technology Secretary Liz Kendall has vowed to work more closely with other “middle powers” to reduce the concentration of power in the AI market — arguing that doing so is in the interest of the United States, too.
In a major speech on Tuesday, Kendall said: “AI is now the engine of economic power and hard power,” but warned that control over the technology is becoming “increasingly concentrated.”
However, she said that “none of this should be taken as weakening our deep, close and enduring relationship with the U.S.”
Instead, she argued that increasing resilience and control aligned with Trump’s call for NATO allies to “step up” by increasing investment in defense and national security.
“Stronger nations make for better allies,” she said.
Gaining leverage
Declaring “the geopolitical settlement of the last 40 years … gone for good,” Kendall said technology and AI are “propelling the populist politics that shape our increasingly divided and volatile world.”
But she said calls to “pause AI” would only be a “betrayal” of “British talent and British interests.”
Instead, “we must exercise greater control and greater leverage over the issues that matter most,” she said, and “ensure its development reflects our interests and values and plays to our strengths.”
In order to build leverage in the global supply chain, Kendall said the U.K. government would make a “decisive move towards backing more British AI companies” in specific areas.
The government earlier this month launched a Sovereign AI Unit with £500 million to channel to British AI startups through direct investments, grants, procurement opportunities and other support. The unit announced its second investment, made to AI firm Ineffable Intelligence, on Monday.
The government will also unveil an “AI Hardware Plan” in June, in a bid to win a share of a market expected to be worth billions, Kendall announced.
The U.K.’s research strengths makes it “better placed than almost any other country” to develop newer, more efficient semiconductors for AI, she said. The plan will build on previous commitments to spend £100 million, via the Advanced Research and Invention Agency, to develop novel AI hardware and procure a further £100 million of semiconductors for publicly-owned data centers.
Middle powers
Kendall also said: “There is more we can and must do to build our sovereign capabilities and increase our leverage by working with our allies, especially other middle power nations.” Those countries “see the same challenges and opportunities,” she added.
She called on these countries to increase joint investment in “parts of the AI value chain where we share an advantage and competitive edge,” and combine efforts to boost resilience.
In particular, she said the U.K.’s “world leading” AI Security Institute will share best practice on the science of AI evaluation at an upcoming meeting of global AI safety organizations in July.
AISI this month became the first government organization to independently evaluate Anthropic’s “Mythos” model, which the company has limited to a restricted group due to its advanced cyber capabilities.
Counterparts in France and Germany have been in contact with the U.K. to learn from AISI, Kendall told journalists.
The U.K.’s cyber and evaluation capabilities mean “we are in a very good position to deal with these challenges, but we are not, in any way, shape or form, complacent,” she said.
Balancing act
The U.K.’s strategy to work more closely with non-U.S. allies without angering Washington faces challenges, however.
Kendall said the U.K. would work more closely with NATO and European allies on AI security and standards, but indicated that it would not be prepared to align with the EU’s AI Act.
“I think we do have this pragmatic, not dogmatic, approach to regulation that does give us a real edge,” she told POLITICO.
Kendall also said the U.K. would continue to welcome foreign investment and seek access to the most powerful technologies — including from the U.S.
The U.K. remains “committed” to a Tech Prosperity Deal with the U.S. signed during President Donald Trump’s state visit last year, she said. The deal has since been frozen amid broader trade disputes.
“AI sovereignty is not about isolationism or attempting to pull up the drawbridge and go it alone,” she said.
“It is about reducing over dependencies and increasing resilience in key national strategic priorities.”