The UK government’s massive £2.5 billion boost to establish the UK as a global AI leader has dominated recent headlines. Yet the news has been received with mixed reviews and some hand wringing. Is it a moonshot for UK companies? Will AI investments really drive UK productivity as promised? What will be the trade-offs – and, perhaps more importantly, who will benefit? The real measure of any technological revolution is not only what it does for GDP, but what it does for people.
Basic economics – and basic humanity
The foundation of economics teaches us that investment boosts productivity. A company’s investment in a new machine accelerates manufacturing, streamlining and automating processes. A new train route built by the government facilitates logistics, getting goods to market faster. Likewise, new technologies contribute to the productivity of individual workers, which collectively raises output. However, just like with the new machines or the train, the new technology needs to be deployed correctly – and deployed with intention.
Deployed well, AI is not just a productivity engine. It is a force multiplier for the people and institutions working on the hardest problems: diagnosing disease in under-resourced communities, modelling climate risk for vulnerable regions, identifying fraud that targets the elderly, or matching children in care with the right support services. The question the UK government – and every boardroom – should be asking is not only “Will this generate ROI?” but “Who does this serve, and how?”
Purpose as the “North Star”
Oftentimes AI is framed as a solution to global challenges – such as biodiversity loss or ending world hunger, for example. In reality, its impact is more targeted yet meaningful, with applications showing real tangible results in disaster response, environmental predictions and conservation.
This pattern of AI focused innovation driving real outcomes extends across other areas too, including accelerated disease diagnosis, improved resource stewardship of resources, and increased energy efficiency to reduce climate impact. However, the underlying principle remains that without a clear business or societal goal and directive – grounded in strong data – AI struggles to find its purpose and deliver meaningful impact at scale.
Technology alone is never the whole solution, but it can point us – with precision and speed – in the right direction. The challenges to delivering on these promises often lie in the effective application of new technologies.
Ready for take off
Despite talk of an “AI bubble,” optimism among UK leaders remains strong, across both public and private sectors. In a recent YouGov survey of 500 executives, commissioned by Snowflake, only 1% expect to decrease their spending, with most increasing, or at least maintaining, their investment in AI.
That investment reflects a growing maturity in how organisations approach AI. For many, early successes have come from targeted use cases that deliver quick, tangible results which help to build confidence and internal momentum. And as that confidence grows, smaller applications can scale into broader, more transformative initiatives that improve both operations and customer experiences. At the same time, it is important to recognise that a significant number of organisations (22%) are still in the experimental phase – which, this early in the cycle, is entirely reasonable.
What’s become clearer, however, is that the business case for AI is strengthening. While efficiency and cost reduction remain key drivers, organisations are increasingly looking beyond short-term gains. There is a clear shift towards using AI to enhance customer experience and unlock new forms of innovation, signalling a move from experimentation to strategic value creation.
These are not purely financial outcomes. Customer experience, when taken seriously, means reducing friction for real people – patients navigating healthcare systems, citizens accessing public services, small business owners managing cash flow. Innovation, when directed well, means solving problems that matter. The UK’s £2.5 billion investment creates an opportunity to make those two outcomes – customer benefit and genuine innovation – the headline metrics, not a footnote to cost reduction.
The stars must align – and alignment must include society
To achieve success, UK companies must overcome persistent challenges. The most critical is alignment between business objectives and AI initiatives. That’s true across all sectors. We often hear, “There is no AI strategy without a data strategy.” But there is nothing without a business strategy. AI must align with the mission.
According to the YouGov survey, only 24% of organisations say AI initiatives are identified and prioritised using a rigorous framework aligned to business objectives. Another 56% report some business alignment, either inconsistently or informally. Without clear objectives, AI initiatives lack a mission. And, those objectives don’t need to stop at the simple balance sheet. In fact, many companies today track their double bottom line – profit and the planet or their triple bottom line – profit, planet and people. For many companies today, good means better business.
But that requires change. Data quality and budget pressures remain major barriers to AI success, but resistance to change is often close behind, highlighting that the challenge is as much cultural as it is technical. Organisations are struggling not only to build effective AI systems, but also to bring people with them. Cost overruns are common, with 95% of businesses reporting that at least part of a generative AI initiative exceeded budget. When projects fail to meet financial expectations, it becomes harder to secure support for future investment and easier for scepticism to take hold.
The real mission
The lesson is clear. AI isn’t a moonshot, however, it requires a clear mission. It’s not about being “AI First”, it’s about defining objectives and choosing the right path.
The UK’s £2.5 billion AI boost is an opportunity to set a different kind of ambition: not just to lead the world in AI capability, but to demonstrate positive impact beyond profits. Prioritisation based on alignment with business strategy increases the likelihood of commercial success. Prioritisation that also asks “who benefits, and who might be harmed?” increases the likelihood of something more durable: public trust, equitable outcomes, and technology that earns its place in society rather than simply displacing it.
The industrial revolutions of the past were judged not just by what they built, but also by how they were applied. The current AI revolution will be judged the same way. The UK has the investment. The question now is whether it has the intention.
*Sources: Snowflake, The Radical ROI of Gen AI and Agents (global survey); The UK Journey From AI Investment To Impact, a YouGov survey of 500 UK executives, commissioned by Snowflake.*
Jennifer Belissent
Jennifer Belissent, Principal Data Strategist at Snowflake where she advises customers on data and AI strategy and best practices in building world-class organisations. Previously, Jennifer spent over a decade as a Forrester Analyst, and has held management positions in technology sales and marketing. Jennifer has a Ph.D. in Political Science from Stanford University and a B.A. in Econometrics from the University of Virginia.
