Peter Kyle outlines the UK’s AI ambitions
On Wednesday, 3rd September, Peter Kyle MP, the Technology Secretary, called on industry to match the UK Government’s ambition on AI in a speech at Mansion House. His message was clear, Britain is open for investment, and he wants AI companies to call the UK home.
Before his speech, Peter Kyle sat down with Nash Squared’s Technology Evangelist, David Savage, for an interview now featured in our Tech Talks podcast. Their conversation focused on what AI investment really means and who stands to benefit.
Since Labour took office, the UK has attracted a record £44 billion in AI and technology investment. A key focus of this strategy is ensuring growth reaches all parts of the country, not just London. Major projects include multi-billion-pound investments in data centres and national supercomputers in Edinburgh and Exeter, with a goal to increase sovereign compute capacity 20-fold by 2030.
However, our own 2025 Nash Squared/Harvey Nash Digital Leadership Report (DLR) shows that while AI investment is accelerating, larger organisations are more likely to see returns due to their scale and resources. Peter Kyle’s focus on decentralising investment and doubling AI companies outside of London is designed to change that, ensuring talent and opportunity are spread more evenly across the UK, reducing the need for people to leave their regions for London or Silicon Valley.
Democratising AI skills for a creative workforce
Peter Kyle noted that the skills barrier to using AI is changing. The future isn’t about coding expertise, but about creativity and effective prompting. The DLR supports this shift, with 65% of digital leaders saying they’d now choose an AI-enabled developer with two years’ experience over a five-year veteran without AI skills, a huge change in hiring priorities.
While technology has often been criticised for deepening social and economic divides, Kyle stressed that proficiency in prompt usage can be gained in as little as 2.5 hours of training, making it accessible to people from all backgrounds, including areas of deprivation. And with the DLR highlighting a lack of action on AI upskilling in many organisations, this ambition is an encouraging sign.
A “Goldilocks moment” in AI governance and innovation
The UK is pursuing what Kyle described as a “light touch, but assertive” approach to AI regulation, encouraging innovation while keeping people safe, without overly prescriptive laws that risk slowing progress. The AI Security Institute, working alongside Frontier Labs, monitors risks before deployment, while sector regulators assess AI’s impact in their industries.
This balanced approach has even been described by Jensen Huang, Founder and CEO of NVIDIA, as a “Goldilocks moment” for Britain. The DLR adds context, with 40% of digital leaders worried about the misuse of Generative AI, such as staff transferring sensitive documents into chatbots or acting on biased data. Kyle’s strategy aims to build trust while maintaining a pro-innovation environment.
AI as a personal and societal equaliser
Kyle shared his own experience of learning with Dyslexia, explaining how AI tools have supported his learning style and boosted his potential. He believes AI could “level up” opportunities, particularly for students in state schools and deprived areas, challenging the idea that privilege must be bought through expensive education.
The DLR strengthens AI’s wide-reaching impact, describing it as an “everywhere” technology that’s already driving productivity and reshaping how businesses operate.
While it doesn’t directly address educational equity, our research shows AI’s potential to upskill existing teams and free developers to take on more complex, creative challenges, which is closely aligned with Kyle’s vision of AI empowering individuals and expanding opportunity.
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