Employment Law News Roundup – 21.1.25

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UK Government's AI Opportunities Action Plan

Plan

The UK Government has unveiled a detailed and comprehensive AI Opportunities Action Plan, marking a significant shift in the nation's approach to artificial intelligence development and implementation. The £14 billion initiative, announced by the Prime Minister Keir Starmer, aims to position the UK as a global artificial intelligence superpower through a series of strategic investments and policy measures.

As we highlighted in a recent article, the Government had indicated in the Kings Speech that there would be new measures to “harness the power of artificial intelligence [and] strengthen safety frameworks”.

New Jobs

At its core, the plan focuses on creating over 13,000 new jobs, including 11,500 positions at a major new data centre campus in Wales and 1,000 jobs in a new tech hub in Liverpool.

Objectives

The 50-point action plan encompasses various sectors, from public services to private enterprise, with a particular emphasis on making the UK an attractive destination for AI firms.

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The government's vision includes leveraging artificial intelligence to enhance public services, boost economic growth, and establish the UK as a leader in responsible artificial intelligence development while maintaining strong privacy and security measures.

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Key Elements

key elements of the plan include:-

  • Sovereign Artificial Intelligence Development: The plan prioritises building the UK's independent artificial intelligence capabilities through a 20-fold increase in public artificial intelligence computing power by 2030. This includes constructing a new state-of-the-art supercomputer and establishing a National Data Library to provide researchers and innovators with access to valuable datasets. The initiative emphasises responsible data sharing, particularly regarding NHS data, with robust privacy safeguards in place to protect public interests while fostering innovation.
  • Private Sector Growth and Innovation: A cornerstone of the plan is the creation of designated AI growth zones, with the first being established in Oxfordshire near the UK Atomic Energy Authority. These zones will feature streamlined planning processes for data centres and enhanced infrastructure support. The initiative includes reforms to work visas to attract international talent and the establishment of sector-specific champions to drive artificial intelligence adoption across various industries, particularly in banking and creative sectors.
  • Public Sector Transformation: The government has outlined an strategy for integrating artificial intelligence across public services, focusing on practical applications such as AI-assisted lesson planning for teachers and automated pothole detection systems. This approach aims to improve service delivery while increasing operational efficiency. The plan emphasises rapid piloting of AI-powered services with successful implementations to be scaled nationwide.
  • Energy Infrastructure Development: Recognising the significant energy demands of artificial intelligence systems, the plan includes the formation of an AI Energy Council, co-chaired by the technology and energy secretaries. This body will accelerate investment in renewable energy sources and small modular nuclear reactors to power data centres sustainably. The initiative demonstrates a commitment to balancing technological advancement with environmental responsibility.
  • Intellectual Property Framework: The plan proposes significant updates to the UK's copyright regime, particularly regarding text and data mining for artificial intelligence development. These changes aim to create a competitive framework that aligns with or exceeds EU standards while maintaining mechanisms for copyright holders to opt out. This aspect of the plan seeks to balance innovation with creative rights protection.
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UK Job Market Returns to Pre-Pandemic Levels

The number of job postings has reverted back to pre-pandemic levels, according to new data from the Recruitment & Employment Confederation (REC) Labour Market Tracker.

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Key Market Indicators

December 2024 witnessed 1.41 million active job postings, marking a 5.5% decrease from November and closely matching December 2019's pre-pandemic levels (also 1.41 million). New job postings saw a more pronounced decline of 16.8%, with 550,982 listings - a decrease largely attributable to the usual Christmas downturn.

Regional Variations Paint a Complex Picture

The job market shows notable regional disparities, with large increases in parts of the South East. East Sussex led with a 4.5% increase in postings, followed by promising growth in East Surrey and Portsmouth. However, some areas faced significant declines, with Dudley, East Dunbartonshire, and Ealing experiencing drops exceeding 14%.

Last Updated:  Sunday, January 26, 2025

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