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On the less positive economic outlook, business reporter Mitchell Labiak has written this story on the fall on the pound and rise in the cost of borrowing to the government.
Adam Durbin
Live reporter
The government's plan for the impending AI revolution has been laid out by the prime minister, but questions about the health of the economy and the future of the chancellor have overshadowed elements of the rollout.
Here's an at-a-glance look at we've learned this afternoon:
Keir Starmer has announced the government's AI action plan, promising to turn the UK into an AI superpower, as well as use it to "turbocharge" the economy and improve public services.
Among the announcements are £14bn of investment in new data centres, thousands of AI jobs being created and plans for a UK-based supercomputer. Read more about what Starmer announced in this post here.
The PM's boosterish rhetoric may have in part been an attempt to soothe skittish markets, external amid a slide in the pound and a spike in government borrowing costs, writes our economics editor Faisal Islam.
The less-than-stellar economic news prompted reporters to grill Starmer on the future of Chancellor Rachel Reeves - who said he had "full confidence" in her, but did not answer if she would still be in post at the next election.
But, as our political editor Chris Mason reports, government sources say Reeves will still be heading up the Treasury for the whole of the Parliament.
Across the scientific community, there has been some positive reaction to Starmer's AI plans.
Gaia Marcus, director at the Ada Lovelace Institute, says it was "encouraging" to see a recognition by the government of its spending power, which can be used "to shape the development of AI through smarter procurement".
Sir John Lazar, who heads the Royal Academy of Engineering, hailed the announcement as "a key step to ensure the UK can seize the opportunities associated with the responsible development and adoption of AI across the public and business sectors".
While Dr Shweta Singh, assistant professor of information systems at the University of Warwick, says that although the AI plan offers "significant benefits", it also "faces several major challenges despite its promise". One significant challenge, she says, is regional inequality, as historically such innovations have been focused around London or the south-east.
Liv McMahon
Technology reporter
The PM’s speech contained a lot of punchy quotes about what AI could potentially achieve with the government’s new plan.
But questions are already being asked about how much time and money will be needed to achieve the vision amid concerns about over-promising and under-delivering.
And more abound over how exactly some of the measures outlined today will "unlock" AI’s benefits while mitigating its risks – particularly when it comes to protecting data that will be made available to AI developers in the National Data Library.
Generative AI tools that can create text, images, video and more in response to simple text prompts, for instance, have a habit of making things up – something we’ve seen with erroneous AI summaries of BBC notifications or search results.
And there have also been concerns around the role that systems capable of generating biased or inaccurate information could play if integrated into important decision-making environments, such as regarding access to health services or benefits.
"Just as the government is investing heavily in realising the opportunities presented by AI, it must also invest in responding to AI’s negative impacts now and in the future," says Gaia Marcus of the Ada Lovelace Institute.
"It is critical that the government look beyond a narrow subset of extreme risks and bring forward a credible vehicle and roadmap for addressing broader AI harms."
Chris Vallance
Technology Reporter
While the government has been keen to promote positive reviews from various tech luminaries for its plans, there were boos, even hisses even from the performing arts union Equity.
The actors union is campaigning against so called "AI show stealers", worried that AI could be used to create synthetic performances without actors being properly rewarded or having control of how their voice and likeness is used.
Paul W Fleming, Equity general secretary, has accused the AI sector of carrying out intellectual property theft on an industrial scale.
"Government is effectively giving the green light to Big Tech to further line their pockets at the expense of our world-leading creative industries," he says.
The government is currently consulting on proposals for how copyright works could be used by AI firms to train their models – including giving rights holders the ability to opt-out.
Fleming says these proposals are simply "flawed".
"AI can be a powerful positive force but protections must be in place, and creative workers and their trade unions must be part of policy making and future licensing schemes," he says.
Chris Mason
Political editor
Would you expect a prime minister to commit publicly to keeping his chancellor for the next four and a half years?
Sir Keir Starmer didn’t do that this morning, when asked more than once.
However arguably unreasonable the question – a lot can happen in almost half a decade – ducking the question inevitably leads to headlines that are easy to write: the prime minister has refused to back keeping his chancellor.
Starmer was asked more than once because there is a fair amount of Westminster chat about Rachel Reeves, with the government in something of a funk, or maybe at least the beginnings of a funk, about the economic backdrop: a stagnant economy, government borrowing costs spiralling etc etc.
Remember Reeves is absolutely central to the Labour project – a key figure in convincing enough people that Labour could be trusted with the economy that they won the election and did so handsomely, at least in terms of seats.
But it is also true that her Budget hasn't gone down well with many – and the change Labour promised is a change for the worse as some now see it.
I am told now by senior folk in government that Sir Keir "will be working with her in her role of chancellor for the whole of this parliament" -- which he didn't quite manage to say out loud in front of the cameras this morning.
Image source, Reuters
The spotlight on Rachel Reeves' performance as chancellor comes shortly after a visit to China, where she reached agreements worth £600m to the UK over the next five years.
The Treasury says the trip delivered on a "commitment to explore deeper economic cooperation" between the prime minister and President Xi, made last year.
But, the agreements were overshadowed by UK borrowing costs hitting a 16-year high and a fall in the value of the pound.
Tory MP Tom Tugendhat said that the timing of Reeves' visit was questionable.
"She looks like she's going with a begging bowl, not with a trading deal," he suggests, amid high UK borrowing costs and a stagnant UK economy.
Questions to the prime minister about the performance and future of Chancellor Rachel Reeves come as the pound has dropped to its lowest value against the dollar since November 2023.
Government borrowing costs have also continued a recent upwards trajectory, as concerns over the health of the economy have spooked the markets.
The pound fell to $1.21 on Monday while the rate at which the government can borrow money hit its highest level since 2008 by one measure.
Borrowing costs for many countries are rising across the world, though some have said decisions made in the Budget have made the UK particularly vulnerable.
Image source, PA Media
Kemi Badenoch highlighted the PM's response to questions about his chancellor
Just now, we've heard some reaction to Keir Starmer's speech from the Conservatives. Shadow science secretary Alan Mak criticises Labour for "delivering analogue government in a digital age".
He says today's AI plan "will not support the UK to become a tech and science superpower".
Mak says Labour cut "£1.3bn funding for our first supercomputer and AI research" while hiking employers' National Insurance.
Tory leader Kemi Badenoch, meanwhile, highlights the PM's response to questions about Chancellor Rachel Reeves.
Starmer did not answer press questions of whether Reeves would be the chancellor at the next election directly.
"The prime minister just refused to back his chancellor staying in her job," the Conservative leader responds.
But, when asked about Reeves' performance, Starmer said that she has his "full confidence" and is "doing a fantastic job".
You can also take a look at how AI is currently used within the public sector or read about some of the reaction that has come through from the tech sector.
We've just heard from a former head of the government's Office for Artificial Intelligence, who says the prime minister's action plan being revealed has elicited a "measured level of excitement" in the industry.
But Sana Khareghani, who left the role in 2022 and is now a professor at King's College London, also tells Radio 4's World at One programme that more information is needed about how the plan will be put into practice.
She says one of the main areas of the plan covers the "fundamentals of AI", including what infrastructure is needed for it to thrive – like data centres or supercomputer.
Another key area, Khareghani says, is how to encourage other industries to start using the technology. This includes how to improve the provision of the public sector and services, the academic notes.
She goes on to say she is grateful to see the government is looking at the possible environmental impact of AI.
Khareghani describes the UK as "leading the way on clean energy technology".
"Continuing this clean energy leadership into the AI revolution would really give the UK a fantastic advantage."
By Anthony Reuben
Artificial Intelligence (AI) uses a lot of energy because it needs big data centres for all the data that trains it.
There were some measures on energy in last year's Budget, including the creation of Great British Energy to help create clean energy businesses and investment in carbon capture, but there was nothing specifically for AI.
Today's announcement includes plans to set up a new AI Energy Council including industry leaders from the energy and AI sectors.
They'll be working on "innovative energy solutions" including Small Modular Reactors, which are small nuclear generators that allow a lot of power to go to remote areas.
And while predictions about this sort of growing technology are uncertain, the International Energy Agency says more electricity will probably be needed globally to meet the growing demands for electric vehicles and air conditioning than data centres., external
Faisal Islam
Economics editor
There's something else going on here.
The questions posed in the markets weren't just about the Budget maths, they were perhaps even more so about UK prospects for growth.
AI is being framed as positive for both. Public services can be more efficient from teaching to the NHS to the provision of public services, and so save money.
But the PM is right that (partly as a result of his predecessors work) the UK is very well positioned on AI, especially with Deepmind’s [now part of Google] work.
These changes are longer term, of course. There are many questions, not least the significant barrier represented by high energy costs.
But it is important for the PM to project confidence and vision in the fastest growth area of the world economy.
This is especially so at a time when the markets are less enamoured with borrowing money to fund decarbonisation.
Faisal Islam
Economics editor
Image source, Reuters
The government has chosen to “go for it” on AI, not just as a long term strategy but as a short term message to those in the markets doubting UK growth prospects.
While the PM said he wasn't being "boosterish", it certainly sounded like he'd taken a leaf from one of his predecessors.
"Mark my words" the UK will be an AI superpower and the "best place in the world to start and scale" an AI business, Starmer said.
The government accepted the Clifford review in full saying it "backs AI to the hilt" and talks of "mainlining AI into the veins" of the entire nation.
It is a conscious turn away from the "AI threat" to our existence story that has dominated much talk in the area, often because of leading figures in the industry itself.
Zoe Kleinman
Technology editor
The plan has been unveiled, now the building work begins.
Quite literally, in the case of the numerous data centres which are promised - giant computer powerhouses which are needed to drive AI tools.
But in addition to bricks, mortar and cabling, there's another backbone needed to make this work: skills.
The government talks about encouraging skilled AI workers to come to the UK - but we also need to upskill our own workforce, both the current one and the young people who are our future.
Here, there is less detail despite a commitment to doing it. Former PM Rishi Sunak faced backlash to the proposal that children should study maths until the age of 18 - but it is a fundamental element of much tech innovation.
And then there's a whole new language of digital literacy for those who will need to master the use new AI tools; such as prompt engineering.
How will we learn, what will the benchmark be and how quickly can the curriculum evolve to accommodate it?
Because we already have many children leaving education this summer who have probably not seen any of this in a formal classroom setting.
That said, they are digital natives and it didn't take them very long to figure out that ChatGPT can be rather good at homework.
Image source, PA Media
Joe Tidy
Cyber correspondent
Image source, PA Media
Keir Starmer has become the fifth UK prime minister to vow to make the UK “a world leader” in artificial intelligence after a long list of previous promises from governments that has largely fallen flat.
Rishi Sunak announced plans to make the UK a world leader in AI particularly in AI safety in November 2023.
In 2019 Boris Johnson pumped £250m into the NHS to make the health service a world leader in AI, external.
Theresa May announced plans to "supercharge", external the UK’s AI industry in 2018 to make it a world leader.
As far back as 2014 David Cameron talked about, external making the UK a world leader in "The Internet of Things" – a loose term used for connected tech in which the government threw in AI as a part of it.
In spite of the ambition the UK has not yet produced a household name company in AI. All the innovation, be it in generative AI, large language models and driverless cars, has been led by the US and China.
According to many rankings the UK is in third place in AI innovation and the latest evaluation from Stanford University’s Human Centred AI centre puts the country well behind both the US and China and just above India.
Marc Cieslak
AI correspondent, reporting from the speech
A lot of faith is being put on AI as a driver for economic growth.
From the tone of the prime minister's speech, AI is going to be doing a lot of heavy lifting across healthcare, education and employment.
The big question remains: while some of these technologies have clearly made huge advances, the government is taking a big bet on AI when a lot of the tech is still in its infancy.
The business folks I've spoken to are all broadly positive about this plan, but it might take a while for some of it to trickle down in a positive way for everyone in the UK.
The next few years are going to throw up big challenges around AI regulation even if the government doesn't want to talk too much about it.
Iain Watson
Political correspondent
Indeed he seemed to see it as a cure for many of the nation’s ills.
The elusive prize of public sector productivity is being talked about inside government as a "bonus".
And Keir Starmer said AI can secure growth, raise living standards, and transform public services.
It’s almost though he had asked ChatGPT, "How do I deliver my manifesto?"
Though the next question should be… How soon can I deliver my manifesto? in the face of restless voters.
Image source, PA Media
After nearly an hour on the new artificial intelligence plan, that's it from Keir Starmer for now.
The prime minister was strident about the benefits of the proposed technological revolution, but had to field questions about the cost of the new scheme.
We've got some analysis on the way, so stick with us.