Mar 16, 2026

British politics is hooked on flashy fake numbers – and the AI investment debacle proves it | Jonathan Portes

Keir Starmer launches the government’s action plan for AI at University College London East, January 2025.
Keir Starmer launches the government’s action plan for AI at University College London East, January 2025. Photograph: Henry Nicholls/AP
Keir Starmer launches the government’s action plan for AI at University College London East, January 2025. Photograph: Henry Nicholls/AP

British politics is hooked on flashy fake numbers – and the AI investment debacle proves it

Jonathan Portes

A claim that the UK is attracting billions of pounds in AI investment has been debunked. That’s no surprise when our establishment runs on dubious ‘good news’

One trillion dollars. That’s the amount of financial aid Gordon Brown triumphantly announced at the 2009 London G20 summit. (I contributed my own two cents here.) Except it wasn’t exactly real: the number was a mixture of already promised apples and aspirational future oranges.

So it should hardly be a surprise that when ministers proclaimed last year that the UK was attracting billions of pounds of new investment in AI, they were being more than a little economical with the truth. As a Guardian investigation revealed, much of it turns out not to be new at all: existing datacentres rented rather than built, a supercomputer site not yet even started, promised investments that might never arrive and claims of job creation that have little or no connection to reality. The headline numbers are impressive. The underlying reality rather less so.

Nor should this surprise anyone who thinks for a minute about how the economy actually works. Companies do not make billion-pound investment decisions because a minister wants a photograph beside a server rack. Policy matters – sometimes a great deal. But its effects are typically slow, uncertain and hard to attribute to any single government initiative.

Politics, however, runs on announcements. And announcements work best when accompanied by large numbers. So, when a company expands its UK operations, for whatever reason, it’s a victory for industrial policy. Existing plans and possible future investments are bundled together, given a headline figure and presented as proof that government policy is working.

The short-term incentive for governments to do this is twofold. The most obvious driver is the need to be seen to be doing or achieving something. The dominance of the No 10 grid, with its imperative to have a “good news” story every day, simply entrenches this.

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