The UK Chancellor has announced hundreds of millions in investment in the UK’s AI capabilities as part of the Autumn Budget.

The Chancellor’s plans include £10 million per year to lead the UK’s work in understanding how AI will reshape jobs and industry, and how Britain needs to prepare for it, addressing concerns about AI’s replacement of jobs from workers across the country and making sure government is best placed to help people into jobs in future.

New investments in AI chip design capability in Edinburgh alongside a new AI Centre of Excellence in Manchester to develop talent will help ensure the benefits of harnessing AI are felt in every postcode through the creation of jobs and new routes to training and skills.

“AI will transform daily life: every firm, community, hospital, school, and every aspect of our economy can benefit,” Chancellor of the Exchequer, John Healey MP, said.

“I understand and share the concerns of working people, so I am setting out a distinctively British approach to AI – one that doesn’t leave workers behind and defends our national interest, while ensuring the benefits of AI-enabled growth are felt right across the country.”

AI Minister Kanishka Narayan said: “Our new AI Biosecurity Lab will be a major new global institution, bringing together world-leading scientific expertise to protect people from emerging biological threats and ensure Britain leads the world in AI safety and security.

“As AI becomes more powerful, Britain must have the capabilities to protect its people and shape its own future. That means staying ahead of emerging threats, from cyber attacks to biological risks, while building more of the critical technology our security depends on.

“We cannot afford to rely entirely on technology built overseas. By backing British science, advanced chips and our own AI companies, we can strengthen our national security, rebuild Britain’s industrial strength and create good, skilled jobs across the country.”

The funding will also include £165 million for a new National AI Biosecurity Initaitve including £100 million for a world-first AI Biosecurity Lab (AIBL) to apply AI to the detection and surveillance of biological threats, and £65 million to strengthen bio surveillance and develop medical countermeasures for priority pathogens.

An additional £120 million will be invested in the AI Security Institute to ensure the UK remains at the forefront of understanding AI capabilities and risks through its testing and research.

The government will also be investing £60 million into a National Cyber Shield that will use agentic AI to improve the UK’s cyber defences, including a £25 million challenge fund to support UK AI and cyber security innovators.

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Further, a new £70 million National Exposure and Real-Time Vulnerability (NERV) Centre will deploy AI tools to identify cyber vulnerabilities across our critical infrastructure and the economy.

An additional £60m for the Soveriegn AI Fund o enhance its ability to invest directly in promising UK AI companies, while an additional £60 million will support Sovereign AI’s R&D Procurement Scheme.

A new UK Advanced Chip Design Academy will gain £18m in investment to support the UK’s AI hardware capabilities.

The UK government will also invest £15m for an AI Challenge Prizze, and will invest an additional £23 million over the next few year for the AI Economics Institute.

Further, £30 million will go to kickstart local AI partnerships with Mayoral Strategic Authorities.