The UK’s economy grew o.4% in the second quarter of 2026, according to the Office for National Statistics, and the AI boom could be largely responsible.

The information and communications sector was the main contributor to this growth, accounting for nearly half of the overall boom, outpacing all other industries.

Within this sector, the ONS found that computer programming, consultancy, and other industries which include AI firms, saw growth of 3.7% last quarter, building on 3.8% growth in the first quarter of 2026.

The ONS also noted plant and machinery spending, which rose to £22.1 billion in Q2 2026, which points to a surge in AI infrastructure investment. Investment in ICT equipment, computer hardware, and government weapons contracts were major contributors to this increased spend.

There was also a strong uptick in computer hardware investment in business capital assets, according to an ONS survey.

Within manufacturing, computing, electronic, and optical product manufacturing grew 10.7% compared to last year, representing the largest growth within manufacturing.

The ONS findings reflect the shifting priorities in AI investment, as funders turn their eyes to infrastructure to set the foundations for AI models, from data centres to energy grids and semiconductors.

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The UK itself is trying to keep up in an AI race largely dominated by US firms and sparking increased debates about data sovereignty and the environmental impacts of data centres.

As the new government scraps the Department of Science, Innovation, and Technology and the new Prime Minister opts to appoint an AI minister to his cabinet, time will tell how AI’s boom ripples throughout the UK’s economy.