Chancellor Rachel Reeves should ramp up investment in AI in her Spring Statement to the Commons to reboot Britain’s sluggish economy, according to industry experts.
As the Chancellor prepares to address the country later today, she is expected to insist that the government has developed “the right economic plan for our country” and that “working people are better off” due to Labour’s policies.
But industry veterans urged a note of caution, pointing towards sluggish economic growth, cyber risks from the war with Iran and rising levels of unemployment.
Patrick Sullivan, CEO of the Parliament Street think tank said: “The Chancellor cannot frame the narrative around a single month of elevated tax receipts, we need to see a real plan to reboot Britain as an AI-first economy, that embraces tech and gets things done.”
AI chief Graeme Stewart, head of public sector at Check Point, said: “The government has laid out ambitious plans for AI adoption; the next step is to put these ideas into action.
“The potential for AI-powered health and social services is enormous, transforming patient experiences and improving lives. The challenge comes from ensuring these new ventures are completely secure, that’s why cyber protection must be incorporated into this strategy by design rather than as an afterthought.”
Jason Kurtz, CEO of Basware, said: “The ‘AI is coming for your jobs’ narrative makes for good headlines, but we’ve heard this story before. Every major technological shift has sparked anxiety about widespread job loss.
“But the doomsday scenarios didn’t really play out. AI is one of the most disruptive technologies we’ve ever seen. And it’s certainly going to change the nature of work.
“But it isn’t going to result in the wholesale replacement of people. What it will do is free us to do the work we want to do and make us better at it.”
Meanwhile Kenny MacAulay, CEO of Acting Office, a software platform for accounting practices, said: “With businesses still reeling from the NI rises and tough trading conditions, the Chancellor needs to send a clear signal that the government sees businesses as a force for good rather than easy pickings for raising revenue for the treasury.
“With thousands of companies grappling with higher overheads, there’s a real risk that AI will be seen as a quick fix cost saving measure and implemented without due care or consideration.
“If the Chancellor can offer some breathing room to companies, they will have the time to develop a cohesive digital strategy, combining AI and software into one single platform, to avoid disjointed purchasing.”
Dmitry Tikhomirov, VP, technology solutions at EPAM, added: “AI is reshaping organisations – improving efficiency and opening up new opportunities for long-term change. But seeing real value from AI takes more than technology alone. It requires business and technology leaders working closely together, with the right platforms and skills in place, so adoption is clearly tied to strategic goals.
“When that alignment is right, AI can move from experimentation into the heart of core operations and deliver business impact.”
Cyber expert Andy Ward, SVP international, Absolute Security, said: “In an increasingly dangerous world, hackers will stop at nothing to infiltrate and damage Britain’s public services, often targeting the defence systems, local councils and even hospitals in an effort to destabilise the country.
“The rise AI means these cyber attacks are more precise, lethal and relentless than anything we’ve seen before and it’s vital that policy makers ramp up cyber defences to keep hackers at bay.
“With this in mind, the Chancellor needs to put cyber defences at the very heart of the Spring Statement and the government’s AI strategy.”