A target for the North East AI growth zone to create 5,000 jobs and attract £30bn in private investment should be the “absolute minimum”, a leading official in the region has said.
Rob Hamilton, assistant director for economic strategy and innovation at the North East Combined Authority, made the confident claim as the new Government body to support companies in artificial intelligence - Sovereign AI - held its first roadshow in Newcastle yesterday.
The Government created the UK’s first AI growth zone in the North East last September, with other areas following in Scotland, Wales and Oxfordshire. It is hoped each area will accelerate the use of AI to boost local economies, as well as increasing skills in the technology for young people.
Mr Hamilton - speaking at Newcastle’s Pattern Shop, once part of the Stephensons’ railway works and now the home of Atom Bank - said he was “delighted” with the progress made on the North East growth zone in recent months, including work on data centres at Cambois and Cobalt.
He said the North East was better placed to have the energy needed for those data centres, which would lead to the region having nationally important assets to help greater adoption of AI.
He said: “In terms of the outcomes, it’s pretty simple really: it’s about jobs, it’s about productivity growth, it’s about engaging with young people, it’s about rising skills and it’s about growing tech businesses in the region.”
Mr Hamilton added that a fully worked-up plan for the growth zone would be produced in the coming months and that “getting on with it” had been the message from the Government and North East mayor Kim McGuinness.
The region is benefiting from a £10bn investment from global financiers Blackstone into a massive data centre at Cambois, near Blyth, which it is hoped will attract more technology businesses to the region. But plans for a second centre at Cobalt were dealt a blow when global AI firm OpenAI said its plans for investing in the UK were being shelved until the “right conditions” allow for long-term investment in the UK’s infrastructure.
Yesterday’s meeting also heard from Will Bushby, ventures lead at Sovereign AI, the new body that has been set up to invest in UK AI companies in an effort to keep the country at the forefront of adoption of the new technology. He said the organisation was “looking to back world leading companies”, particularly firms that were taking artificial intelligence into new areas.
Answering a question from BusinessLive, he had to admit that all three of the organisation’s investments to date had been into London firms, a pattern seen with other Government efforts to boost business growth and innovation. He said that “we want to invest in the best companies wherever they are in the UK” and that, as a native of Leeds, he was “passionate” about supporting companies around the UK.
Separately, 30,000 primary school children in the North East are to gain AI and digital tech skills and 1,000 teachers will be helped to teach AI thanks to new funding from North East mayor Kim McGuinness. The skills drive will see a £750,000 investment from the North East Combined Authority and £1.5m from the Government.
Science and Technology Secretary Liz Kendall said: "The North East is already showing how AI can deliver for working people, with billions of pounds invested and thousands of new jobs on the way, as businesses and government work together to make the region a leader in Britain’s AI future. We’re investing in that progress for the long term. By giving young people the AI skills they need, supporting start-ups and acting to bring more women into tech we can keep talent and opportunity in the North East."
Ms McGuinness said: "The North East is the one to watch when it comes to cutting-edge tech and AI as we work to make sure everyone benefits from our AI growth zone. We’re already working closely with local employers, training providers and schools to make the North East the best place to live, work and thrive when it comes to tech."
"But we know we need to go further to make sure local people really benefit from more opportunities than ever before. That’s why we’re investing in training so our young people can make the most of the exciting opportunities around AI and working with some of the region’s brightest companies to support more women and girls in the tech sector."
