New package puts AI at the heart of “national renewal”

21 Nov 2025 02:26 PM

In advance of incoming Autumn Budget announcements next week, the Department of Science Innovation and Technology has announced a National Renewal Package for AI. This package builds on the AI Opportunities Action Plan from January and the Industrial Strategy from this summer. 

These span everything from new details on AI Growth Zones to new investment and new members to Team AI within Government. All aim to position AI as a core driver of economic growth and prosperity. 

Please find below our major takeaways from the announcement 

1. New AI Growth Zone in South Wales 

From Newport to Bridgend, this AIGZ is expected to unlock £10bn in investment and 5k jobs over the next decade. It will also receive the same £5mn commitment Government announced it would provide every AIGZ to ensure that they work with local authorities and councils to support AI adoption and skills. 

This marks the second AIGZ in Wales, and the fourth announced total with other locations in North Wales, North East England, and Oxfordshire. While this fourth zone has been announced, an investor has not yet been fully secured. 

2. A Novel Advance Market Commitment 

First of its kind for the UK, this is a pot of £100mn of dedicated government backing for AI hardware products made by UK startups. Essentially, this advanced market commitment would make Government the first customer for startups with innovative products who want investment. 

Because this advanced market commitment is novel, it is subject to due diligence before it can be taken forward. 

3. New Chair for Sovereign AI Unit 

James Wise will chair DSIT’s Sovereign AI Unit – which has £500mn to: 

• Invest in UK companies to support AI national champions. The Sovereign AI Unit will work with Innovate UK and the British Business Bank to support high-potential startups  to start and scale their companies in the UK 
• Create and develop UK AI assets and enablers such as data, compute and talent. 
• Make the UK the partner of choice for Frontier AI companies. This will ensure that the UK public and private sectors benefit from reliable access to, and influence over the development of, cutting edge technology, ensuring everyone across the country benefits from transformative AI. 

4. New AI Ambassadors Coined 

These AI ambassadors – Simon Johnson, Tom Blomfield, and Raia Hadsell – have deep experience in the greater ecosystem and appear to have been chosen for their understanding of the critical challenges, including procurement, facing scale-ups to succeed in the UK. 

This is not to be conflated with AI Champions – who are chosen for particular sectors highlighted in the Industrial Strategy. 

5. Major investment in compute and scientific discovery 

Building off previous commitments from the Industrial Strategy and the Compute Roadmap, this package also two pots of investment designed to speed up scientific breakthrough: 

• Up to £250mn to ensure British researchers and startups access to free compute  
• Up to £127mn for AI-for-Science to speech up the drug discovery and medical treatment research