Global AI showdown: Britain stakes its claim in intelligence economy – OXBIG NEWS NETWORK-OxBig News Network

British Prime Minister Keir Starmer’s address at London Tech Week 2025 may well mark a turning point in how artificial intelligence is viewed, not as a narrow technological shift, but as a strategic foundation for a nation’s future.

“We can be an AI maker, not just an AI taker,” Starmer declared, underscoring the UK’s ambition to build core capabilities rather than depend on imports.

In his words, “AI and tech make us more human. It may sound like an odd thing to say, but it’s true — and we need to say it.” With those remarks, he positioned Britain’s approach in contrast to both China’s state-commanded model and Silicon Valley’s disruption-led playbook.

Starmer’s government has committed an extra £1 billion to scale up compute power by a factor of 20, according to his official statement, and forged new partnerships with companies such as Nvidia, a leading Silicon Valley-based chipmaker, to back domestic development.

Also announced was a £1.5 billion investment by Liquidity, a multi-billion dollar AI-driven fintech direct lender, to establish its European headquarters in London.

Starmer linked AI to health, defence, planning and education, citing examples of how consultants treating strokes are already using AI to locate clots in a fraction of the time previously required. He added, “I’ve set the challenge to all of my teams: show me how they can use AI — not just in the output of government… but also in the very way we do government.”

This national pivot towards AI comes at a time when several countries are intensifying their own AI efforts. Among them, China’s strategic intent is especially pronounced. In a detailed analysis published by Morgan Stanley Research last month, China is reported to be pursuing AI leadership by 2030. The country’s AI and related sectors could collectively become a $1.4 trillion market by that year. According to the report, China’s investments may break even by 2028 and yield a 52 per cent return on capital by 2030.

The Chinese government laid out its AI roadmap in 2017, aligning private enterprise with state priorities. Today, the country’s access to large-scale data, expanding nuclear energy infrastructure, and control over AI talent, reportedly holding 47 per cent of the world’s top researchers, are pushing this vision forward. Despite US export controls, Morgan Stanley’s analysts noted that China is prioritising more efficient, lower-cost models. The AI startup DeepSeek exemplifies this trend. It drew global attention earlier this year for developing a high-performing model for only $5.6 million. “China is less concerned about building the most powerful AI capabilities, and more focused on bringing AI to market,” said Shawn Kim, Head of Tech Research, Asia, at Morgan Stanley.

Across the Atlantic, the United States continues to see a surge in AI job growth, led by what researchers at the University of Maryland and job analytics firm LinkUp have called the “ChatGPT effect”.

The CNN reported in February that AI job postings in the US have risen 68 per cent since late 2022. At the same time, traditional IT jobs have declined by 27 per cent.

This surge, however, is accompanied by labour market churn. Analysts quoted in the CNN report highlighted that companies were centralising functions and relying more on automation, even as they outsource high-skilled AI roles to lower-cost geographies. AI may be driving productivity, but it is also accelerating a global rethink of employment models and operational footprints.

India, meanwhile, finds itself in a critical phase, bridging the gap between adoption and leadership. According to Forbes India, Indian AI startups secured over $1 billion in venture funding in 2024, up 50 per cent year-on-year. Sarvam AI’s launch of its Indian-language large language model (LLM), Sarvam-M, has drawn attention both for its linguistic capabilities and its symbolic value in the IndiaAI Mission’s vision of sovereign AI development.

Under the central government’s ₹10,300 crore, five-year programme, Sarvam has gained access to 4,096 Nvidia H100 GPUs to train its foundational model. Forbes India also highlighted growing public-private collaboration, with tech giants such as Microsoft and Google supporting Indian firms working on applications in agriculture, finance, and healthcare.

Still, concerns persist. Analysts quoted in the report point to talent flight, limited upstream capacity in chips and compute hardware, and patchy access to structured datasets.

Despite these challenges, India appears focused on relevance. Experts such as Shankar Maruwada of EkStep Foundation believe India’s strength lies in practical, multi-modal AI systems suited to local needs. Investors like Sumangal Vinjamuri of Blume Ventures point to opportunities in full-stack vertical AI and enterprise tooling, particularly in sectors where Indian firms can leverage existing expertise in software and services.

“There are three categories of applications we are most excited about: Full-stack vertical AI that can boost productivity and outcomes in specific industries, services-as-software that can deliver traditional human-like delivery with software margins, and platforms and tooling that can help enterprises accelerate building and adoption of AI workflows internally,” Forbes India quoted Vinjamuri as saying.

This decentralised approach may not mirror China’s scale or the US’ capital might, but it aligns with India’s historic ability to create global value through frugal, scalable solutions. The AI strategy now being built — with an emphasis on context, accessibility, and trust — seeks to ensure India does not miss the wave.

Keir Starmer’s vision of Britain as an “AI maker” may have opened London Tech Week, but it echoed far beyond the UK. Around the world, AI is no longer confined to labs or tech giants. It has moved into the domain of national priorities, power structures, and strategic advantage.

Those who move with purpose will shape the future. The rest may simply be shaped by it.

(The writer is a career journalist currently serving as Communications and Advocacy Director at UNITED SIKHS (UK), a charity registered in England and Wales)