Starmer's Labour government announced an "action plan" to make the UK "the world leader" in AI, with the "full weight" of its half a million strong civil service getting behind the endeavour.

The "AI Opportunities Action Plan" includes 50 recommendations that the government will implement to boost AI-driven efficiency in the public sector, from education to detecting potholes.

"AI is the greatest force for change in the world right now. I am determined to harness it to usher in a golden age of public service reform," Starmer wrote in the Financial Times ahead of a speech.

Britain -- which has the third-largest AI industry after the United States and China -- does not need to "walk down a US or an EU path on AI regulation", Starmer added, as he looks to attract billions of pounds of investment from AI firms.

"We can go our own way, taking a distinctively British approach that will test AI long before we regulate, so that everything we do will be proportionate and grounded in the science."

Starmer's position moves away from the EU's strict data protection laws which have led to a slew of privacy complaints against tech giants relating to the use of personal data for developing AI products.

In the US, incoming President Donald Trump's desire to deregulate the economy and his team of Silicon Valley-linked advisors could influence policies on AI regulation.

Starmer's diverging approach comes amid concerns surrounding AI's role in spreading online misinformation and deepfake pornography, as well as fears robots could one day outsmart humans if left unchecked.

- 'Economic mismanagement' -

The government plans include the creation of "dedicated AI growth zones" designed to speed up planning proposals for data centres and other AI infrastructure.

The government also plans to increase server capacity twentyfold by 2030, including by building "a brand new supercomputer with enough AI power to play itself at chess half a million times a second".

However, the Conservative opposition pointed out that Starmer previously axed a supercomputer project in Edinburgh planned by the previous government.

Starmer's administration estimated that AI could be worth pound47 billion ($57 billion) to the UK each year over a decade.

It announced that three tech companies -- Vantage Data Centres, Nscale and Kyndryl -- had committed to spending pound14 billion on AI in the UK, leading to the creation of more than 13,000 jobs.

Starmer has put firing up Britain's economy at the heart of his agenda since taking office last July.

But weaker-than-expected growth, rising borrowing costs and a falling pound is complicating his task, meaning he could be forced to make spending cuts or hike taxes this year.

Shadow Science Secretary Alan Mak accused Labour of insufficiently funding its AI ambitions.

"AI does have the potential to transform public services, but Labour's economic mismanagement and uninspiring plan will mean Britain is left behind," Mak said.

There are also concerns that the sector-wide implementation of AI could result in job losses.

"It's a disruptive technology, like many other previous technological waves," senior cabinet minister Pat McFadden told Times Radio.

"But I think it's too pessimistic to simply talk about job losses," he added.

The government is expected to wrap up next month a consultation to clarify the application of copyright law to AI, which it says aims to protect the creative industry.