Secretary of State for Science, Innovation, and Technology Liz Kendall’s speech at Bloomberg

Secretary of State for Science, Innovation, and Technology, Liz Kendall, delivered a speech at Bloomberg on Wednesday 28 January 2026.

Winning for Britain on AIOpening

"I'm delighted to be here at Bloomberg to make my first speech on Artificial Intelligence (AI) since I was appointed as Secretary of State.

My argument today starts with this.

We are at a defining moment for Britain: our place in the world and our future prosperity.

AI is now the engine of economic power and of hard power.

We are in a race for the future, and this government will seize the moment to win for Britain and the British people.

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Our mission is to help people through the changes AI inevitably brings.

And shape a future that works for all, not just a few at the top.

Because this is how our country and our people succeed.

The benefits of AI

I don't need to tell this audience about the huge opportunities technology and AI bring.

To grow the economy, create good jobs and deliver huge societal benefits too.

The NHS is already using AI to halve treatment time for stroke patients and speed up the diagnosis of prostate cancer, potentially saving patients up to a month of waiting.

It's helping develop new treatments for conditions like Alzheimer's and in future could lead to cures too.

And in my own city of Leicester, I've seen how personalised AI tutors are helping transform education for disadvantaged children. Giving them the opportunities in life they deserve.

Britain's strengths

This is the Age of Artificial Intelligence, and it is also an age of geo-political upheaval and turbulence.

Indeed the two are often linked.

Semi-conductors have literally become bargaining chips amongst competing nations, and in some cases the AI supply chain is being weaponised for national advantage.

I believe Britain can carve its own path, which speaks to our values.

We are uniquely placed to seize the opportunities of AI.

But also uniquely placed to set the standards for how AI is used and adopted.

Our universities are the envy of the world.

We have more Nobel prizes per capita than any other major economy.

A tech ecosystem already worth $1 trillion.

And alongside our unwavering commitment to science, a deep well of high quality data and world leaders in AI like Demis Hassabis…

…we have a pragmatic approach on regulation: we don't stymie business with unnecessary red tape. 

And we have the huge advantage of the AI Security Institute (AISI) and their world leading technical expertise.  

So when it comes to AI standards and deployment, Britain can be a beacon to the world.

I will say more about Britain's role in the world on AI in the coming months.

But my message today is clear.

People who are ambitious for this technology and want to develop it responsibly should come to work and do business in the UK, because together we can shape the future to work for the economy and wider society.

The AI Action Plan

One year ago, we published our first ever AI Action Plan to build on Britain's strengths and seize the opportunities of the future.

In the last 12 months we've made huge strides, delivering three quarters of the actions we promised.

Compute is the essential foundation for modern AI: shaping where cutting-edge research happens, where high growth firms choose to locate, and how quickly new applications reach the public.

We have already launched 4 AI growth zones – in Culham, the North East, and in North and South Wales…

…to help build the AI infrastructure Britain needs…

…create more than 10,000 jobs, and generate £100 billion of investment…

…with more of our Growth Zones to come very soon.

We've committed up to £750 million for a new national supercomputer in Edinburgh, alongside those in Bristol and Cambridge.

We're expanding by 20-fold our AI Research Resource – offering free public compute to Britain's world leading researchers, businesses and start-ups …

…backed by £1 billion of government investment.

And we are responsibly unlocking our data - treating it as a key, strategic national asset…

…including our new National Data Library (NDL) of high value government and public sector data…

…and the Health Data Research Service (HDRS): a single, secure access point to national scale health data.

We are determined to secure our future with more world leading, homegrown AI.

Not just because we are patriots who love our country – but because more competition on AI is better for Britain, and better for the world…

…because we must not be over reliant on other countries for access to technologies that underpin our future prosperity…

…and because I believe the British public will be more willing to embrace AI if they know technology can benefit everyone, not just a wealthy and unaccountable few.

Now, many people say Britain doesn't have a start-up problem, we have a scale up problem.

And that too often we lose brilliant British businesses and entrepreneurs, especially to the USA.

I believe we have great story to tell on tech and AI – from Wayve to Synthesia, Isomorhpic Labs and 11 Labs.

But this government is determined to do even more.

That's why at the Budget we announced a plan to help our brilliant startups and entrepreneurs.

Doubling eligibility for the Enterprise Management Incentive, to give more workers a stake in our tech future.

Doubling investment limits for Venture Capital Schemes.

And introducing a 3 year exemption from Stamp Duty Reserve tax for newly listed firms, giving scale ups a compelling reason to stay in the UK.

We are changing government procurement rules, so more firms, big and small, can benefit from government contracts, so we reduce unnecessary red tape and buy British wherever we can.

And we have announced our new Sovereign AI Unit…

…to accelerate success, by investing in and supporting UK AI companies.

Backed by £500 million, this will be chaired by James Wise from Balderton Capital.

And I can today announce the Unit will be a standalone team, highly empowered, operating with maximum autonomy. So it can be fast and decisive, because that's what the AI start up sector demands.

Government adapting itself to the speed and pace of business, not the other way around.

And so we say loud and clear to UK start up founders, particularly in AI: 

You are our future and we will do everything we can to back you.

Britain's Goldilocks moment

Britain's great strengths – combined with this government's vision and ambition – led Jensen Huang to say last year: this is Britain's Goldilocks moment.

And he is right.

Last year our AI start-ups raised £6 billion, up 80% on 2024…

…UK science and tech companies received more VC funding than France, Germany and Switzerland combined…

…and the UK AI sector grew 23 times faster than the economy as a whole.

I am very proud of these achievements.

But I am not satisfied, and I'm sure you aren't either.

We cannot and will not stand still.

We will keep our foot firmly on the accelerator, because that is what other countries are doing, and what our country needs and deserves.

Winning for Britain

You know, in the last couple of months since I was appointed as Secretary of State, I've heard some people say we should be pleased or even grateful that we are 3rd in the world on AI – behind the US and China.

I don't know if it's because of my inherent competitiveness.

But I don't think that's the mindset Britain needs.

No one runs their fastest race to come 2nd, let alone 3rd, 4th or 5th.

You run your fastest race to win.

Don't get me wrong. I'm not naïve.

We must, and we are, securing our own sovereign AI capability.

This is far too important a technology to depend entirely on other countries especially in areas like defence, financial services and healthcare.   

But we shouldn't try to outrun the US or China on building the most or the biggest data centres.

The race we can and should focus on winning is on adopting AI – on getting AIto actually be useful to people and to drive innovation.

So we turbo charge our existing strengths and reap the benefits throughout the economy.

Prioritising our strengths

That means being clear-eyed about how we spending taxpayers' money, and where we target our resources.

I sometimes make the comparison with National Lottery funding and the Olympics.

Back in the ‘90s, if you're old enough to remember, Olympic sport was not the UK success we know today.

At the 1996 games in Atlanta, Team GB came home with just a single gold, finishing 36th in the world.

By 2012 in London we won 65 medals – including 29 golds.

And in Rio, in 2016, we moved up to second in the medal table, behind only to the US.

A big part of that turnaround was about money.

Some called it the ‘no compromise' approach – where we gave the most resources to the best performing sports.

I believe we can learn from this, for UK innovation.

If we want gold-medal AI we have to be strategic, lean into our priorities and where we have a competitive edge.

Like our world leading life sciences, financial services, defence sector, robotics and clean energy…

…and unashamedly back our winners.

Adoption throughout the economy

Now, I studied history at university.

Not maths, computer science or engineering.

And what history teaches us about the emergence of general purpose technologies, from the industrial revolution onwards…

…is that the countries which led and got the most from each wave of change weren't just those who came up with the initial discovery…

…but those who adopted it the broadest and the deepest…

…creating more demand for more innovation, propelling the country forward.

That is why our ambition is to make Britain the fastest adopting AI country in the G7. 

And we are already taking action.

In November last year we launched our Modern Industrial Strategy, setting out how AI can drive productivity and competitiveness across our eight priority sectors…

…from digital and technologies to advanced manufacturing, financial services, defence and life sciences.

We're backing each AI Growth Zone with £5 million specifically to support local businesses to adopt AI.

We're expanding Innovate UK's BridgeAI programme, providing tailored guidance, funding and expertise to de-risk and accelerate AI deployment – supporting thousands of businesses to adopt AI before the end of this Parliament.

And we are tackling regulations that are holding back the safe adoption of AI.

Our new Regulatory Innovation Office (RIO) is helping speed up the delivery of British innovation - by safely removing unnecessary regulatory barriers…

…from a game changing drone blood delivery service at Guy's and St Thomas's hospital to trialling street sweeping robots in Milton Keynes.

And we're going further, by establishing new AI sandboxes…

…so companies and innovators can test pioneering AI products that have the potential to transform lives, including a pioneering new cross-economy sandbox the AI Growth Lab.

AI and jobs

I want to be very clear about one, absolutely critical issue.

We will only succeed in winning for Britain if people have the confidence this technology is safe and when we support people through the changes AIinevitably brings.

That is why I stood up to Elon Musk and X to demand they disable Grok's ability to create sexualised deepfakes of women and children without their consent.

Something that is not only against British values, but against British law.

And it's why this government will not be a bystander when people are worried about the impact AI will have on their jobs, and their children's job prospects too.

People are already worried about the impact of AI on entry level jobs for graduates in areas like finance, business and the law.

About what AI means for hospitality and retail.

And – as AI and advances in robotics come together – the implications for a far wider range of jobs including in the public sector.

We know that AI will create more good jobs.

We're already seeing that in our AI growth zones…

…in Newcastle, home to Sage, the UK's largest tech company…

…and Bristol, the home of Graphcore.

AI will also change jobs.

Often freeing up people's time to focus on the things that really matter – like the primary school teacher I met in my own constituency who is using AI for lesson planning, freeing up the equivalent of 30 days a year of his time…

…so he can be more present with children in the classroom, and more present with his own kids at home.

But I want to level with the public.

Some jobs will go. Others will be created in their place.

That is always the case with the onset of new technologies…

…and especially with such a powerful general purpose technology as AI…

…which is still only at the foothills of its potential.

But whilst change is inevitable, the consequences are not.

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We will support people through the jobs transition.

And the principles and values that will guide our approach are clear.

Our aim is to ensure AI boosts jobs and growth.

To support workers to adapt.

Protect communities from the mistakes of past industrial change.

And develop a fair, and dignified future where people are helped into better jobs in a more productive and growing economy.

To help us achieve our goals, I can today announce the government is establishing a new Future of Work Unit, based in my department…

…not only to provide the best analysis and evidence about the impact of AI on the labour market – in this country and internationally…

…but to bring together action across government to deliver on our principles with a plan of practical help and support…

…including from the Department for Work and Pensions (DWP), the Department for Education (DfE), the Business department and the Treasury.

This Unit will be guided by a panel of leading experts, and I am delighted that CBI and TUC have agreed to take part.

We already know that employers are more likely to hire you have you have AIskills and to pay you more too.

Last year the Prime Minister set an ambitious goal to upskill 7.5 million workers in AI skills by 2030, through a unique partnership with leading companies…

…including Accenture, Amazon, Barclays, BT, Google, IBM, Intuit, Microsoft, Sage, SAS and Salesforce.

Over 1 million AI upskilling courses have already been delivered…

…including short, six-week online courses for beginners and those with intermediate skills…

…and hands-on AI workshops in specific sectors like marketing and finance.

And today I can announce we will go further.

Our ambition now is to upskill 10 million workers by 2030, with at least 2 million of these in small and medium sized businesses – the backbone of our economy…

…with new strategic partners to help us in this endeavour, including companies like Multiverse, public sector bodies like the NHS, Local Government Association (LGA) and Department for Work and Pensions…

…alongside techUK, the CBI, Federation of Small Business and the British Chamber of Commerce.

And I can also announce £27 million for TechLocal – a new programme to support people, in particular women, to move into entry level tech roles through new skills and work experience to bridge the gap between their current skill set and what industry needs.

Taken together, this will be the biggest single plan to upskill our nation since Harold Wilson's Open University.

Because that's what our country needs and deserves.

Closing

I just want to finish by saying this.

We are on the cusp of great change. An Industrial Revolution in a decade.

We have barely begun to see how this technology will transform all our lives, largely – I believe – for the better.

We will look back in 20 years barely able to fathom a world without AI.

And while there are some people – on both the Right and Left of politics – who claim Britain is broken, and that our best days are in the past, I couldn't more strongly disagree.

Every day I meet our brilliant scientists, researchers, educators, businesses and entrepreneurs.

I see their talent, optimism and verve.

This government knows that when we unleash Britain's best asset – the talents of our people – there is nothing we cannot achieve.

We can shape the changes technology inevitably brings, and ensure the benefits work for all.

Its great to be here at Bloomberg, in the heart of Britain's financial district.

But the most precious and valuable commodity in my business, and arguably the country, isn't capital. Or even compute.

The most valuable commodity today is optimism.

I am optimistic about the future because I know this country has the talent and determination to rise to the challenges we face.

We are an ambitious nation.

A confident nation.

A nation whose best days lie ahead."