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UK Budget to Channel Hundreds of Millions Into AI Security and Innovation

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The United Kingdom government plans to commit hundreds of millions of pounds to artificial intelligence (AI) security, research and innovation in its upcoming budget, as it seeks to strengthen national security, support economic growth and reduce dependence on foreign technology.

Chancellor John Healey announced the plans ahead of his budget statement on Wednesday, October 28, promising a “distinctively British” approach that balances technological progress with worker protection and national security.

The measures include fresh investment in the UK’s AI Security Institute, support for AI chip-design capabilities in Edinburgh and the establishment of an AI Centre of Excellence in Manchester. The Treasury also plans to provide up to £300 million in public-private investment for a new AI Biosecurity Lab to help protect against emerging biological threats.

The government will additionally spend £10 million annually to study how AI could reshape jobs and industries, amid concerns that automation may lead to job losses even as businesses benefit from efficiency gains.

Healey said AI could transform businesses, hospitals, schools and communities, but stressed that its benefits must reach workers and households across the country.

Security Minister Dan Jarvis said the investment would help Britain use AI to strengthen national security while staying ahead of those seeking to exploit the technology for harmful purposes.

The announcement comes amid growing concerns over AI-enabled cyberattacks, vulnerabilities in critical computer systems and the economic disruption caused by rapid automation. Recent website outages linked to a software vulnerability have highlighted the risks facing digital infrastructure.

The government is seeking to position AI as a driver of productivity and living standards while strengthening safeguards against threats to Britain’s security and economic resilience.

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