The majority of artificial intelligence firms in the UK are developing generic technologies rather than targeted solutions to address specific challenges, a new report from the Institute for Public Policy Research (IPPR) has found. The think tank analysed a database of 3,256 UK-based AI companies and concluded that 85% are not concentrating on particular sectors or problems. Many firms, the study claims, are focused on streamlining administrative tasks or refining existing business processes rather than creating innovative tools to improve public services, such as healthcare or transport systems.
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This comes as the Government sets its sights on positioning the UK as a global leader in AI. In January, the Prime Minister outlined an action plan to drive economic growth through artificial intelligence by investing heavily in digital infrastructure and encouraging international AI businesses to operate in Britain. However, the IPPR has raised concerns that without clear strategic oversight, the current wave of AI development risks becoming directionless and commercially driven, rather than focused on societal benefit.
To counteract this, the IPPR is urging the Government to establish an AI tracking unit. This proposed body would be tasked with monitoring the nature of AI projects being undertaken across the UK, identifying underdeveloped areas, and directing public investment to where it can spur meaningful innovation. Carsten Jung, the IPPR’s head of AI, warned that current policy is “unfocused and risk-averse,” calling for a shift in emphasis towards breakthrough technologies that serve the public interest, particularly in critical areas such as public health and climate change.
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Jung emphasised that the UK has a unique opportunity to lead in the creation of AI with genuine societal impact. “Too many companies are pursuing process efficiency over purpose-driven solutions,” he said. “With the right policy incentives and direction, the UK could become a global hub for AI that enhances sustainability, improves healthcare outcomes, and expands opportunity. It’s a matter of substance over speed, and purpose over profit.”
