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Inquiry launched into scaling up AI and creative tech

4 September 2024

The Communications and Digital Committee launches an inquiry into scaling up AI and creative tech.

Background

The UK has a vibrant startup scene with a strong reputation for innovation. But major challenges persist around converting startups into the stable, scaleup businesses the UK needs to secure long-term prosperity.

The reward for improving the UK’s scaleup potential is high. Scaleups have a disproportionately large economic impact, create highly skilled jobs, drive productivity and boost UK competitiveness.

The consequences of failing to capitalise on these opportunities are also considerable. International competition is growing. Business strategies focusing on foreign buyouts or overseas scaling remain a feature, rather than a bug, of the UK’s ecosystem. Without concerted action, the UK risks losing its competitive edge in strategic economic sectors.

A number of initiatives have sought to boost the UK’s scale-up potential in recent years. But barriers to progress abound. Our inquiry focuses on two high-potential areas where the UK has existing advantages: technology in the creative industries, and (more widely) artificial intelligence.

We are seeking to understand the specific barriers to SMEs scaling in AI and creative technology, and to propose changes to Government and industry practices that can be delivered over the next five years. This will include evaluating the adequacy of existing schemes to support scaling; assessing the new Government’s plans; and learning lessons from past successes and failures.

Chair's comments

Commenting Baroness Stowell, Chair of the Lords Communications and Digital Committee, said:

“The UK has a great track record in producing exciting start-up businesses in the fast-growing creative-tech industries and AI sectors.

“But we have a big problem in helping those businesses to grow at home, and ensure their success contributes to UK PLC. Too often, innovative UK companies seem to be waiting to cash out to foreign investors or move abroad. And while might be great for the founders, it’s less good for the UK economy as a whole.“Our inquiry will be taking a detailed look at what can be done to remove the barriers to scaling in the UK, and what we can learn from other countries with a better track record in this space. This will be of particular significance in the next five years as we look to the potentially epoch-defining opportunities of AI.

“There are huge opportunities on offer if we get this right. If we don’t, we risk falling behind competitors in key sectors of our economy.

“We are keen to hear from a wide range of voices and I encourage anyone with knowledge of these issues to send in their views.”

Deadline

The Committee invites written contributions by 23:59 on Wednesday 16 October 2024. 

Further information

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