Mike Bracken, who founded the Government Digital Service and led the creation of GOV.UK, has cautioned that Britain is at risk of becoming "dangerously dependent" on a small number of foreign tech companies. This warning comes as AI increasingly integrates into UK businesses and public services.
Mr Bracken stated that organisations are gradually relinquishing control of critical systems as they adopt external tech and AI providers. This concern is highlighted by new figures from the Office for National Statistics (ONS), which show that 35 per cent of UK businesses with at least 10 employees were using at least one form of AI in June, a rise from approximately 12 per cent in 2023. For companies with over 250 staff, this figure has reached 49 per cent.
The ONS noted that leading foundation-model providers are primarily American, suggesting much of the AI technology used by British companies is accessed via licensing agreements rather than being owned as a UK asset. Similarly, most specialist chips required for advanced AI are produced outside Britain.
The government has responded to these concerns by committing £500m to its Sovereign AI programme and £1.1bn to an AI Hardware Plan, aiming to bolster domestic capabilities in chips and infrastructure. In its recent response to the Science and Technology Committee, the government acknowledged risks from concentrated markets and "single points of failure," stating that sovereignty should involve diversification, domestic capability building, and access through trusted international partners.