Business

UK Invests Up to £60 Million in AI Research Labs to Cut Costs and Boost Adoption

The UK government has announced plans to invest up to £60 million in two university-led artificial intelligence research laboratories aimed at making AI systems more affordable, reliable and accessible for businesses across the country.

The new centres, hosted by the University of Oxford and University College London (UCL), will focus on developing next-generation AI technologies that can operate more efficiently and reduce dependence on a small number of major global technology companies.

The initiative is being funded through UK Research and Innovation (UKRI) and will provide the laboratories with access to advanced computing resources worth tens of millions of pounds. Officials say the project is designed to strengthen the UK’s position in the global AI sector by focusing on innovation and research rather than competing solely through large-scale spending.

One of the new facilities, the Science of Fundamental AI Research (SOFAIR) Lab, will be led by Professor David Barber at UCL in collaboration with researchers from the universities of Cambridge, Oxford and Edinburgh. The lab will bring together experts in computer science, mathematics, statistics and neuroscience to develop new AI architectures and open-source models.

Professor Barber said current AI systems continue to face challenges, including inaccurate responses and limitations stemming from similar underlying designs. He said the project aims to create a new generation of open-source AI systems that are cheaper to run and less dependent on a handful of major providers.

The second centre, the British Open-ended Learning and Discovery (BOLD) Lab, will be led by Professor Jakob Foerster at Oxford, working alongside UCL and Imperial College London. The research will focus on developing AI systems capable of adapting to new situations, learning more efficiently and being applied across industries and public services.

Professor Foerster said the UK could not compete globally by attempting to outspend the world’s largest technology firms. Instead, he said the goal is to discover more efficient and open approaches to AI development that better serve users and businesses.

AI Minister Kanishka Narayan described the investment as an opportunity for Britain to help shape the future direction of artificial intelligence while strengthening domestic capabilities and reducing reliance on foreign technology.

The announcement coincided with the anniversary of the birth of pioneering British mathematician and computer scientist Alan Turing.

The funding package will be distributed over six years. Each laboratory will also receive £2 million to support doctoral students and help build a pipeline of AI talent. The centres will work alongside the Alan Turing Institute and existing UKRI research programmes.

Government officials said the initiative forms part of a broader £1.6 billion national AI strategy aimed at supporting innovation, economic growth and wider adoption of AI technologies throughout the UK economy.

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