Tech bosses warn chancellor UK risks surrendering to foreign AI giants

Britain risks becoming dangerously dependent on foreign tech giants unless the government develops a comprehensive strategy for its own AI, industry leaders have warned the Chancellor ahead of his Budget on Wednesday. UKAI, which represents more than 270 AI businesses, has urged John Healey to commit substantial funding to a national sovereign AI strategy, warning that the country could become a vassal state reliant on overseas powers for critical technology. The warning comes just days after the Treasury unveiled more than £600m in AI investment, including additional funding for British startups and domestic chip design. However, the trade body argued that successive funding announcements had failed to address the broader problem of Britain’s dependence on foreign companies for the AI models, computing infrastructure and services underpinning its economy. The UK has some of the world’s best AI companies, yet no Sovereign AI strategy to help them thrive , said Tim Flagg