UK’s Future in AI: Tax Breaks Needed to Compete with US Tech Giants
British researchers warn that the UK will struggle to keep up with the likes of Google and Microsoft in the AI race, despite the government’s “Frontier AI Taskforce”. The University of Cambridge report suggests that the UK focuses on developing AI-powered products that can be applied to everyday life, while also urging the government to provide tax breaks to businesses investing in AI skills.
The report highlights the UK’s current lack of computing capacity and capital needed to build “generative” machine learning models at a speed that can compete with US tech companies. Instead, researchers suggest that the UK should leverage AI systems for real-world applications, such as developing diagnostic products and addressing the shortage of software engineers, to give the country’s economy a major boost.
However, the report also emphasizes the need for legislation to ensure the safety and transparency of AI. Without solid legal and ethical regulations in place, both industries and the public will be hesitant to invest time and resources into AI development. The report calls for a new bill that addresses data protection, intellectual property, and product safety to foster confidence in AI and increase UK productivity.
Generative AI, which uses algorithms trained on large datasets to produce original content, has the potential to revolutionize various industries. For example, the text-based ChatGPT has become a sensation this year. However, the report highlights the UK’s lack of GPU clusters, computing hardware required for handling large amounts of data, which are currently owned by the big US tech companies.
To overcome these challenges, the report suggests that the UK should focus on building software that applies AI to sectors where it already excels, such as fin-tech, cybersecurity, and health-tech. The UK’s world-class research universities can also play a crucial role in solving AI-related problems and driving progress.
In addition to legislation, the report recommends offering tax incentives to AI start-ups and businesses that incorporate generative AI into their operations. The government should consider enhancing the Seed Enterprise Investment Scheme and providing tax credits to spur AI innovation.
To seize the economic benefits of AI, the UK needs to prioritize trust in the technology. Meaningful legislation and regulation are necessary to ensure that AI can be relied upon and that the UK can compete on a global scale.
Will the UK be able to overcome these challenges and become a global AI leader? What are your thoughts on the future of AI in the UK? Leave your comments below!
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