The U.S. and UK will broker a tech deal. Here’s what to watch.
Feb 28, 2025
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Joseph Bambridge, POLITICO's deputy tech and trade editor based in London, discusses a groundbreaking tech partnership between the U.S. and UK. He delves into the UK's ambitions to attract U.S. tech investment, particularly in AI. Bambridge highlights the challenges of digital services taxes and the influence of figures like Elon Musk on UK political narratives. The conversation also sheds light on the evolving landscape of tech collaboration and competition between the two nations and potential policy shifts that may affect their future relations.
The UK aims to establish a strong economic partnership with the US centered on advanced technologies like AI and quantum computing.
Tensions exist between the UK and US regarding tech regulations, with the UK shifting focus towards safety in its approach to technology.
Deep dives
UK's Tech Partnership with the US
The UK is eager to establish a new economic partnership with the US, focusing on advanced technologies such as artificial intelligence, quantum computing, and life sciences. Prime Minister Keir Starmer emphasized the importance of seizing opportunities in tech innovation rather than imposing excessive regulations. This initiative aims to position the UK as a primary overseas destination for US tech firms, enhancing investment opportunities and international collaboration. The drive for this partnership reflects both countries' historical contributions to technological advancements and a desire to lead in the rapidly evolving tech landscape.
Strategic Aims of the UK
The UK government's long-term ambitions include becoming a leader in AI, supported by its AI Opportunities Action Plan, which outlines 50 commitments to enhance its computing infrastructure and expertise. By fostering partnerships with US tech companies, the UK seeks to attract large-scale investments and establish itself as a strong player in critical technologies. The country aims to leverage its strong research and development ecosystem to complement US capital and innovation capabilities. This strategy not only reflects the UK's aspirations for technological leadership but also aims to secure its role in global tech competitiveness.
Tensions in Tech Regulations and Investments
There are growing tensions surrounding tech regulations and investment strategies between the UK and the US, particularly under President Trump's administration. As Trump prioritizes domestic investments, the UK faces challenges in attracting similar investments while also advocating for its digital services tax and regulatory framework. The recent renaming of the UK's AI Safety Institute to the AI Security Institute has drawn attention to the shift in focus towards safety from a more aggressive regulatory approach. This balancing act highlights the complexities of the partnership, as both nations navigate cooperation and competition in the tech sector.
The U.S. and UK will negotiate “a new economic deal with advanced technology at its core,” UK Prime Minister Keir Starmer said on Thursday at the White House. The details of the arrangement remain an open question, but President Donald Trump added it could get done quickly. On POLITICO Tech, London-based trade and technology deputy editor Joseph Bambridge joins host Steven Overly to talk about potential sticking points.