Tech Week in London: Accenture Signals Widening AI Disparity as Starmer Unveils Tech Skills Agenda
Modern-Day AI Landscape: London Leads, but Other Regions Lag Behind
Keir Starmer's AI pledge may sound promising for the tech sector, but a new report spotlights a worrisome regional divide in AI job creation, investment, and training in the UK. London's dominance in the AI sphere has raised concerns that the country's ambition to be an "AI maker, not an AI taker" might falter without a balanced strategy.
Accenture's UK tech talent tracker reveals that an overwhelming 80% of AI job postings are situated within London. Apart from AI, the capital city also accounts for 65% of all tech vacancies nationwide. While the demand for AI talent has risen nearly 200% across the country, only a few regional hubs like Glasgow, Liverpool, and Leeds show comparable momentum.
Capitalizing Beyond the M25: A Matter of National Importance
Data paint a disquieting picture of the UK's AI readiness beyond the M25. London firms plan to allocate 19% of their tech budgets to AI in 2025, with other regions falling far behind at 13%. Similarly, 58% of London businesses are actively investing in generative AI training compared to just 40% elsewhere.
Emma Kendrew, Accenture's UK tech lead, warned, "To fully capitalize on AI's economic potential, regions outside of London must also compete for talent and infrastructure. The disparity in AI upskilling raises serious concerns for the UK's long-term competitiveness."
Government reports forecast that more than 13 million UK jobs will involve AI either directly or indirectly by 2035. The growing demand for AI professionals is fueling a rebound in UK tech hiring; however, the foundation for equitable growth remains unevenly distributed.
Bridging the Digital Divide: Government and Tech Giants Step Up
During London Tech Week, Prime Minister Keir Starmer announced a £187 million 'tech first' program with the goal of training 7.6 million workers in AI by 2030. He emphasized that AI would act as a leveler for economic growth and stated, "We're putting the power of AI into the hands of the next generation." The pledge included funding for one million secondary school students to receive AI and digital training, as well as new master's scholarships for top talent in AI research.
Nvidia CEO, Jensen Huang, emphasized the importance of treating AI as "critical infrastructure" and advocated long-term investment in education, compute, and security. The government's 'AI opportunities action plan' aims to ensure that "every region shares in the benefits of growth."
To effectively bridge the digital divide and get all regions competing at par, encouraging local partnerships between universities, industries, and rural tech companies could prove crucial. Investments in data centers, like the £14 billion government-backed plan, will also support AI development across the country.
Using education and technology to address the regional divide:1. In order to competitively capitalize on AI's economic potential across the UK, a focus on AI upskilling beyond London is essential, as revealed by Emma Kendrew, the UK tech lead at Accenture.2. The government's pledge of training 7.6 million workers in AI by 2030 will help in equipping the next generation with AI skills, but investments in infrastructure like data centers and fostering local partnerships are crucial to ensure a level playing field for AI development in all regions.
