AI company getting prevents advancement – article

Thinktank warns of deepening regional inequalities due to hi-tech ‘golden triangle’ of Oxford, Cambridge, and London

Investments in new technologies, such as artificial intelligence (AI), are heavily concentrated in the “golden triangle” of Oxford, Cambridge, and London, which could exacerbate existing regional inequalities in England, according to research. The rapid deployment of generative AI and automation may contradict the government’s goal of leveling up the country, narrowing the gap between the best- and worst-performing areas. The Institute for the Future of Work (IFOW) has developed a new “disruption index” that shows funds for hi-tech innovation in England are primarily allocated to a limited area in the south and east.

The concentration of hi-tech investments into a few specific geographic areas has a significant impact on the prospects of the larger remaining parts of the country,” the report states.

The authors note that both public and private sector investments have tended to follow a similar pattern, and this geographically concentrated nature has become even more pronounced over the period they studied.

Lead author Bertha Rohenkohl commented, “When you hear in the news about the UK having the highest levels of hi-tech investment in Europe and similar claims, while this might be true at a national average level, we know that these investments are primarily going to just two, three, or four places.”

These areas include inner London, the home counties of Berkshire, Buckinghamshire, and Oxfordshire, as well as East Anglia, which is the location of the hi-tech hub associated with the University of Cambridge.

From autonomous delivery robots for home shopping to AI tools assisting lawyers in sifting through extensive case law, automation, and large language models like Chat GPT, are already revolutionizing numerous roles.

Some economists suggest that these advancements may constitute “general-purpose technologies,” with effects on the economy that are likely to be widespread, akin to the impact of the discovery of electricity or the advent of train travel.

Professor Philip McCann from the Productivity Institute at Manchester University highlighted the significance of government intervention in ensuring a fair distribution of the benefits from this transformation. He indicated that the concentrated political power in the UK was partially responsible for the skewed investment pattern.

“The UK remains exceptionally centralized and has been increasingly so over the past four decades, whereas the rest of the industrialized world has been moving in the opposite direction,” noted McCann, who works closely with IFOW.

The issue lies in the fact that various signals within the state—such as institutions, politics, laws, public policies, and more—have consistently directed investment towards certain areas, creating a cumulative effect.

He recommended that the government decentralize skills and employment policies to the local level, enabling regional economies to prepare for new technologies.

The researchers compiled data on investment locations, including venture capital, research and development, and new patents. While the complete data is only available up to 2020, Rohenkohl stated that more recent data for some factors supports the skew they identified.

“I anticipate that based on the patterns we are observing, we will see even greater inequality in more recent years,” she noted.

The report also introduces a “readiness index” to identify areas with the necessary conditions, such as skills and infrastructure, to support hi-tech investment.

The results indicate that regional inequalities in this area are less pronounced, suggesting that the current investment pattern may not be inevitable.

The Labour party has pledged to ensure AI benefits everyone if it wins the general election, although it is still developing a comprehensive strategy. Speaking at techUK’s policy conference last month, Peter Kyle, the shadow secretary of state for science, innovation, and technology, stated that “new technology could enhance our democracy if we use it wisely. The economic prosperity and job opportunities resulting from advancements in science and computing could address regional inequality if we manage it appropriately.”