Think tank warns Big Tech dominance could cripple UK's AI competitiveness
A report from the Institute for Public Policy Research says that the market power of a few large tech firms is limiting competition and threatens the UK's ability to benefit from AI.
According to a new Institute for Public Policy Research report, a small group of tech giants controls almost all of the digital infrastructure that British firms rely on, stifling competition and endangering the UK's AI ambitions. A survey cited in the paper shows 79 % of UK businesses dependent on digital platforms view Big Tech dominance as a greater obstacle to growth than access to capital or skilled labour. The study lambasts the Competition and Markets Authority, noting senior staff turnover and a perceived softening of its mandate after a 2025 government directive to prioritise inward investment.
It also points to ongoing investigations into Microsoft’s business software and voluntary commitments that fall short of binding rules. The IPPR recommends a refreshed strategic mandate for the CMA, urging bold enforcement to protect the emerging AI sector, which is already heavily concentrated among firms like Nvidia and the major cloud providers. The think tank warns that without decisive action, the UK could lose leverage and financial returns from AI development.
Why it matters
UK firms may miss out on AI growth if competition remains constrained by a few dominant tech companies.
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