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UK must boost support for its own AI companies

Financial Times Companies •
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David Lammy, a Labour MP and former foreign secretary, argues the UK needs to do more to support its own AI companies. He notes that when foreign counterparts wanted to “do AI with Britain,” he could only direct them to the AI Security Institute, unlike the US or France which point to companies like Palantir or Mistral. \n\nAndy Burnham’s announcement at the United Nations to put AI at the heart of Britain’s G20 chairing next year is astute but faces challenges. Geopolitical tensions are rising, with reports that the US plans to ban cutting-edge Chinese AI models, citing security concerns and IP theft.

This would harm the European AI start-up scene and foreclose diplomatic breakthroughs at the G20. \n\nMartin Casado of Andreessen Horowitz notes that many entrepreneurs use Chinese open-weight AI models due to cost, which are roughly one-tenth the price of American counterparts. China aggressively promotes these models to become the default provider worldwide, escaping US export controls. US agencies allege Chinese companies have inappropriately trained models on American AI at industrial scale. \n\nTo avoid a US ban dividing the world, Burnham needs a three-part strategy: develop a diplomatic plan with allies to present to President Donald Trump, turning the UK’s AI Security Institute into a collective allied regulator; and invest more in British AI to reduce vulnerability, highlighting companies like Fuse and Era4.