UK Tech Industry Looks to Attract AI Startups Away From Dominant Silicon Valley

The UK tech industry is pushing to establish itself as a leader in artificial intelligence (AI) startups after a difficult year that saw venture financing dry up, companies cut staff, and Arm Ltd. decamp for a US listing. Although the number of VC deals going to British tech startups is down, some investors believe that the UK could seize the next wave of tech innovation by setting its own financing and regulation rules distinct from Brussels and the US. The UK’s chance to become a tech superpower lies in its capacity for world-leading AI development, according to Saul Klein, co-founder and managing partner of LocalGlobe LLP. He cites two recent events as causes for optimism: the acquisition of Silicon Valley Bank’s UK branch by HSBC and Google placing its AI research units under the head of DeepMind, the company’s London-based AI lab. University College London has created a £120m tech fund focused on turning AI research into commercial enterprises, and investors have injected more cash into AI startups than fintech firms for the first time since 2011. Despite the positive outlook, some experts see a lack of ambition in science and tech strategy as a roadblock to the UK industry’s global competitiveness.