The vast majority of AI firms operating in the UK lack purpose, with just one in seven companies focused on solving specific problems using emerging technologies, according to new analysis of the AI industry from the Institute for Public Policy Research (IPPR).

Using what it calls a ‘first-of-its-kind’ database, the IPPR found that only one in seven AI companies in the UK are focused on solving a specific problem,  with 85% offering ‘generic’ AI solutions.

In a damning indictment of the nascent AI industry, the IPPR’s report, The direction of AI innovation in the UK, found that the majority of AI firms are not directly contributing towards the public good, despite many having at some point benefitted from public funds.

Analysis of the think tank’s database, compiled of 3,256 AI firms operating in the UK, shows that despite one in five companies receiving public funds, only 15% are using their tech to solve societal problems like delivering better, sustainable transport or improving public health.  

However, the IPPR found there are an encouraging number of UK firms working on breakthrough technologies, which, with more support, could lead the way in giving the UK AI industry a much-needed sense of purpose and direction. 

Without intervention, the IPPR warned that the imprecise nature of current AI innovation could hamper social objectives, something already evident in healthcare. 

Despite health being the second largest sector for AI activity in the UK, the report found that just a scant 12% of AI health technology is focused on prevention, despite that being a cornerstone of public policy.

Likewise, in the transport industry, the IPPR found that only 9% of current UK AI innovations are concentrated on increasing access to transport while also reducing carbon emissions, and instead are mostly concerned with the development of autonomous vehicles and fine-tuning efficiencies.

To reset the AI industry on a path for the public good, the IPPR report recommends that the UK Government take a more activist role through measures like setting up a new AI Tracking Unit to map AI deployment and identify gaps.

The think tank also advocated for the Government to make use of Innovate UK’s grant-making powers, along with those of the British Business Bank, in order to steer AI innovation to focus on ‘problem’ areas and fund AI firms focusing on specific missions.

Taking advantage of the Government’s huge procurement budget would be another salient step, according to the IPPR, and could create a new market for breakthrough AI innovations and make the Government a more dynamic player in rewarding firms that are contributing to the public.

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“The government has said it wants to ‘shape the AI revolution’, but currently, much of AI innovation is generic and not focused on solving hard problems,” said Carsten Jung, head of AI at IPPR.

“The dearth of breakthrough AI innovation is partly a result of innovation policy, which has often been unfocused and risk averse, but the Government has many levers to steer the UK AI industry towards fixing hard problems.

“With a push in the right direction, UK companies could lead the world in developing AI that serves the public good—enhancing sustainability, improving healthcare outcomes, and boosting opportunity.”