UK plans £10 million a year to study AI’s effects on employment

On 24 October 2026, the UK government announced that it plans to spend £10 million a year studying the effects of artificial intelligence on employment and industry. The announcement comes four days before the budget scheduled for 28 October.

The Treasury has not specified the exact recipient of this annual sum, when the funding will begin, or how long it will last.

The government also plans an additional £23 million over three years for the AI Economics Institute. The relationship between this sum and the £10 million a year has not been specified. Adding them together to calculate a total could count some of the funding twice.

The AI Economics Institute had been introduced on 8 June 2026, before this announcement. It is intended to gather data and examine scenarios to assess AI’s effects on productivity and the labour market.

These data and scenarios could help government departments target training and support for workers. Public policy decisions remain theirs to make, and the research guarantees neither retraining nor job retention.

Local partnerships and an investment fund

The government also plans £30 million for local AI partnerships. They are intended to bring together mayor-led regional authorities, local authorities, businesses, universities and training providers.

These partnerships aim, among other things, to help small and medium-sized businesses adopt AI and develop workers’ skills.

The Sovereign AI Fund is to receive an additional £60 million to invest in British AI companies. Its scope is to expand to physical and industrial AI, including robotics, autonomous systems and advanced manufacturing.