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UK Urged to Boost AI Development through Legislation and Tax Breaks

TL;DR

  1. The UK needs legislation and tax incentives to boost AI innovation and catch up with global tech giants.
  2. Generative AI has immense potential but demands computational resources; the UK should focus on its strengths in sectors like fintech and health-tech.
  3. Establishing trust through robust AI regulation is crucial for public acceptance and investment in AI-related skills and technologies.

New University of Cambridge report calls for a robust legislative framework and financial incentives to fuel AI innovation and integration in the UK.A recent report from the University of Cambridge underscores the need for the UK to bolster its Artificial Intelligence (AI) capabilities, with a particular emphasis on “generative” AI. Unlike the tech behemoths of the US such as Google, Microsoft, and OpenAI, the UK lags in the resources and infrastructure required to swiftly develop these AI models. Researchers suggest that rather than trying to compete directly with these giants, the UK should concentrate on harnessing AI for practical, real-world applications.

Potential economic boost

Applications of AI could range from creating innovative diagnostic tools to addressing the persistent shortage of software engineers in the UK. Such moves could not only provide an economic upswing but also position the UK as a global frontrunner in embedding AI technologies into everyday life and business operations.

Dame Diane Coyle, Bennett Professor of Public Policy, remarked, “The UK can become a global leader in actually plugging these AI technologies into the economy.”

The need for regulation

However, a significant hurdle remains: trust. Without comprehensive legislation guaranteeing robust AI regulation on ethical and legal fronts, British industries and the general public may remain sceptical. Such scepticism could deter investments in training and skill acquisition related to emergent AI platforms like ChatGPT.

Prof Gina Neff, Executive Director of the Minderoo Centre for Technology and Democracy, emphasized the importance of establishing confidence in AI, stating that a new Bill focusing on data protection, intellectual property, and product safety is crucial.

Generative AI: The game changer

Generative AI, which employs algorithms to produce original content such as text, images, and audio rapidly, has been making waves globally. Examples of its prowess include ChatGPT for text and Midjourney for imagery. However, the creation and operation of such models demand extensive computational resources. A supercomputer announced earlier this year by the UK chancellor, intended to rival giants like Google Bard, won’t be operational until 2026.

“The UK has no companies big enough to invest meaningfully in foundation model development,” noted report co-author Sam Gilbert. As a solution, the report suggests the UK leverage its strengths in sectors like fin-tech, cybersecurity, and health-tech.

Harnessing AI for everyday use

Sam Gilbert highlighted that generative AI could accelerate coding by approximately 55%, potentially addressing the UK’s developer shortage. Moreover, it could empower even those without a programming background to craft intricate software.

Furthermore, the UK boasts some of the world’s leading research universities, making it well-positioned to overcome AI-related challenges, from optimizing data centre cooling to identifying AI-propagated misinformation.

Incentivizing responsible AI

Currently, the UK’s AI regulation strategy is hazy, comprising a set of non-mandatory principles vaguely gesturing at security and transparency. For the UK to truly reap the economic rewards AI promises, Dr Ann Kristin Glenster, another report co-author, asserts that trust in the technology is paramount—and that requires concrete legislation.

To further stimulate AI innovation, the report also proposes a suite of tax incentives. An enhanced Seed Enterprise Investment Scheme could boost capital for AI start-ups. Additionally, tax credits might be offered to companies integrating generative AI into their operations. The introduction of challenge prizes might also inspire organizations to uncover innovative uses for generative AI.

The UK stands at a pivotal juncture. With the right mix of legislative action, financial incentives, and strategic focus, the country could transform into a global nexus for practical AI applications, driving economic growth and innovation.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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John Palmer

John Palmer is an enthusiastic crypto writer with an interest in Bitcoin, Blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience.

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