UK tech leaders urge Chancellor to craft sovereign AI strategy to curb foreign reliance

Ahead of the upcoming Budget, UKAI, which speaks for more than 270 artificial-intelligence companies, cautioned Chancellor John Healey that the United Kingdom may turn into a “vassal state” dependent on foreign AI infrastructure unless a comprehensive sovereign AI strategy is funded. While the Treasury recently announced over £600 million for AI initiatives—such as additional startup capital, a Sovereign AI Fund, and an advanced chip-design academy—UKAI argues these are isolated steps that do not address the broader reliance on overseas models, computing power and services.

The warning was amplified by a recent Google Cloud outage that disrupted banks, courts and businesses, underscoring the risk of limited provider diversity. Cyber-security specialist Charlotte Wilson urged the government to move beyond piecemeal funding and embed AI development within defence budgets to counter rising state-sponsored threats. The Council for Science and Technology has similarly warned that Britain could become a high-value AI consumer rather than a producer without stronger domestic capabilities. UKAI is pressing for a single, well-funded strategy that also reforms public procurement to give British AI firms greater access to government contracts, hoping the Budget will deliver decisive action.