Keir Starmer says artificial intelligence (AI) is the "defining opportunity" of our generation, as he sets out plans to use the technology to boost growth
At a speech in central London, the prime minister acknowledges concerns about AI, but says "the battle for the jobs of tomorrow is happening today"
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, our economics editor Faisal Islam says
But in questions afterwards, he was pushed on the current state of the UK economy and his faith in his Chancellor Rachel Reeves
Catch up: What is AI and how does it work?
Chancellor has my full confidence, says Starmer
The Financial Times asks Starmer to clarify his plans on the national data library and whether that would become available for commercial use as well as for the purposes of improving public services.
The prime minister responds by underlining the importance of ensuring the system works properly. Referring to health data specifically he says the way to protect it is to "keep control of it".
Image source, PA MediaStarmer is now asked by The Times newspaper, whether Chancellor Rachel Reeves still has his support given the current state of the UK economy.
In response, the prime minister says: "Rachel Reeves is doing a fantastic job, she's got my full confidence, she has the full confidence of the entire party".
"She took the tough decisions, and she's right to take the tough decisions," he adds.
LBC's Natasha Clark focuses on the possible use of heath data from the NHS, asking what will be up for grabs for private firms to use?
Starmer begins his response by saying the UK is in a "unique position" with having NHS, noting the use of the health service's data "has already driven forward advances" in healthcare.
The PM goes on to acknowledge it is "important we keep control of that data", but then says the he does not think "we should have a defensive approach" to its use.
Marc Cieslak
AI correspondent, reporting from the speech
There's been much talk of economic growth and the benefits of AI especially in healthcare.
But the level of investment required to stimulate the kind of activity being suggested in today's action plan will be enormous.
If the government want to homegrown AI power players, will domestic investment be sufficient?
Image source, ReutersElon Musk gets a mention in a question from Channel 5 - they ask whether Starmer is concerned about the entrepreneur encouraging people not to invest in the UK.
The PM says he's "really pleased" that highly successful players in the sector have come out in support of his plans.
"They are the ones that will make the breakthrough of the future," he adds, stressing that they are "voting with their feet" and setting up offices in the UK.
And, he says the government will work with anybody in the sector, Elon Musk or otherwise.
Channel 4 asks Starmer again about the potential for more spending cuts, but also asks Starmer whether the freedom to regulate in a new way is a benefit of Brexit.
Starmer acknowledges the freedom in regulation - and the ability to choose what is in the country's best interest.
As for the time for AI to have an effect on productivity - the prime minister doesn't think it will take five to 10 years.
He says he is "confident" the timeframes will be "much shorter".
Iain Watson
Political correspondent
Unsurprising that Keir Starmer was asked by the media about the current state of the economy.
He chooses to emphasise his commitment to the government’s fiscal rules.
With borrowing costs up, that suggests potential cuts and a tough settlement for some government departments in the ongoing spending review.
He doesn’t answer a question on whether Rachel Reeves will be chancellor by the time of the next election.
The PM is now being asked by GB News if he will cut the benefits bill, and whether Rachel Reeves will stay in post as his chancellor until the next general election.
Starmer says his government will stick to fiscal rules and they're determined to bring about stability.
The prime minister goes on to say he is confident on his mission for growth, and "completely confident" in his team.
He recalls that during the general election and at the start of his term as PM he did not shy away from saying it would take time to restore the UK economy "after 14 years of failure".
ITV's Robert Peston asks Starmer about shocks to the Labour market – in terms of people's pay falling or losing jobs – and the fact their living standards won't necessarily rise as a result of AI?
"What are you doing to protect livelihoods?" Peston asks.
Starmer cites the "changing nature of jobs" and those being created by AI investment, noting the 12,000 new roles in data centres which didn't previously exist he just announced.
"We are absolutely making sure that we're focus on working people's jobs and what happens to them," the PM adds.
Marc Cieslak
AI correspondent, reporting from the speech
It's worth noting that while the PM says the UK is one of the top three AI nations in the world, it is some distance behind the big players - especially US companies.
Starmer's discussion on economic growth bets big on AI helping in this regard.
While it seems wise to promote investment, it is not clear if AI alone will lead to the sheer level of growth that's required to kickstart the economy.
A question from Sky News asks the prime minister about borrowing costs to fund the new AI scheme - will there be spending cuts in the coming year?
Starmer says the number one mission of the government is "economic growth", but says there is much more that they are doing on this – for instance through changing planning regimes.
As for AI, the PM says it is "going to change things quicker than we think". He says that a decade's worth of change is likely now to come in "four or maybe five" years as a result of the technology.
Starmer also says that the UK is well placed for this growth, as a country that is already in the top three or four for AI development.
Image source, Getty ImagesStarmer is now asked a question by the BBC's Chris Mason who asks both about fears around data and jobs as well as how soon AI might make a difference for the economy.
Starmer says we need to look at it through the "lens of opportunity".
As for the economy he says Labour have "inherited a real mess" but says AI will help to turn that around.
Chris Vallance
Technology Reporter
The use of AI in the public sector is already widespread with projects ranging from chatbots to pension calculators and learning assistants, external.
And the tech has been used in services millions of us rely upon.
Since 2022 the Department of Work and Pensions has been using AI to help detect fraudulent benefit claims - it believes the system could eventually save the department billions of pounds, but it stopped routinely suspending benefit claims flagged by the tool in January 2024 after concerns were raised.
Some police forces already use controversial AI-powered face recognition technologies to spot people of interest in CCTV images both live and previously recorded.
On the roads, there have also been trials of AI powered road safety cameras that can spot if a driver is using a mobile phone or not wearing a seatbelt.
With today’s announcement, the plans are clearly to ramp things up rather than slow down.
Marc Cieslak
AI correspondent, reporting from the speech
The £14 billion of new investment is positive for those wanting investment in AI - but a drop in the ocean when we consider the vast sums needed to fund AI activity.
It's a start - but much more will be needed not just in the long but in the short-term.
Image source, PA MediaThe PM recognises that new technology can provoke fear and inhibition, and because of the fears of a small risk "massive" opportunities are missed.
"The far bigger risk is we don't go for it, and we're left behind by those who do," Starmer says.
The prime minister says he wants people to look back on this generation and be proud of what was started today, in a similar way to how "we're all proud of our history".
And with that, Starmer ends his speech. He's now taking questions from journalists.
Starmer says he is going to give Matt Clifford, the author of the action plan Starmer is laying out, a place in Downing Street.
"Our ambition is not to just be an AI superpower, but also makes sure it benefits working people", the PM says.
He announces a new technology hub in Liverpool, which Starmer says will create a 1,000 new jobs.
A £14bn investment in data centres across the UK will create 12,000 more, Starmer adds.
Iain Watson
Political correspondent
The PM says we are "number one in Europe" for AI, but not globally.
The big tech companies may well be attracted to the UK, especially if there are fewer regulations and faster planning decisions in the UK than the EU.
But these companies are foreign -owned.
UK-founded DeepMind is now owned by a US company. So the pledge to make the UK the best place to "start and scale" AI companies is quite a challenge.
What about the talent? Starmer asks.
He mentions visa routes, and says that when it comes to regulation, the country will be pro-growth and pro-regulation.
We will test and understand AI before we regulate it, he adds, but stresses that regulation should be "proportionate and grounded in science".
The prime minister says he has a message for AI businesses: "We want to be the best state partner for you, anywhere in the world."
Starmer now references plans for a national data library as well as increasing the public compute capacity by a factor of 20 - something he likens from going from your dad's old Ford Cortina to an F1 McLaren.
He also speaks of talent with "high potential visa routes" for top talent to move here, and making it easier for "tomorrow's talent" to learn here.
Iain Watson
Political correspondent
No wonder Keir Starmer is so keen on AI.
In the political doldrums, he has focused on what AI can do for "working people" - from tailored lessons for children to saving lives in the NHS.
And it doesn’t harm his political image to be seen to be embracing the future.
The political difficulty is that some benefits will take time to deliver.
Even the government’s own upbeat press release has some more negative small print: "realisation could be gradual", it admits.
