UK Archives | Page 2 of 45 | Digital Watch Observatory

Amazon upgrades Alexa with AI features

Amazon is rolling out an AI upgrade to its Alexa assistant, aiming to make interactions more conversational and responsive. The new version is designed to follow the context and respond more naturally.

The update comes as Amazon seeks to compete with advanced AI chatbots that have gained popularity in recent years. Critics have argued that smart speakers have fallen behind newer AI tools.

Users in the UK are expected to notice more personalised and proactive responses from the upgraded assistant. This will be based on user and customer personal data. The service will be included with Prime subscriptions or offered as a standalone monthly option.

Analysts say the update could help Amazon gather even more user data and improve engagement by picking up on customers’ habits through conversations. However, questions remain about whether the changes will drive revenue or revive interest in smart speakers.

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Google responds to UK digital market rules and CMA proposals

Debate over proposed UK digital market rules is intensifying, with Google outlining its position and emphasising the need to balance competition with user experience and platform integrity. The company said it supports the objectives of the Competition and Markets Authority but warned that some proposals could introduce risks for users.

G o ogle argued that maintaining fair and relevant search results remains a priority, stating that its ranking systems are designed to prioritise quality rather than favour its own services. It cautioned that certain third-party proposals could expose its systems to manipulation, potentially weakening protections against spam and reducing the pace of product improvements.

The company also addressed user choice on Android devices, noting that existing options already allow users to select preferred services. It suggested that adding frequent mandatory choice screens could disrupt user experience, proposing instead a permanent settings-based option to change defaults without repeated prompts.

Regarding publisher relations, Google highlighted efforts to increase control over how content is used, particularly with generative AI features such as AI Overviews. It said new tools are being developed to allow publishers to opt out of specific AI functionalities while maintaining visibility in search results.

Google said it would continue engaging with UK regulators to shape rules that support users, publishers, and businesses, while ensuring that innovation and service quality are not compromised.

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UK opens supercomputing access to boost AI startups

Britain is opening access to its national AI Research Resource to support domestic AI development. Startups and spinouts can now use supercomputers previously reserved for frontier research.

The AIRR combines infrastructure from government, universities and leading technology firms. It provides the computing power needed to train models and run complex simulations.

Access will be worth around £20 million per year for participating companies. Officials say reducing compute barriers will help startups move faster from prototype to product.

The government’s Sovereign AI Unit, backed by up to £500 million, will also support long-term growth. The programme targets areas including advanced models, scientific discovery and trustworthy AI systems.

Concerns remain over regulatory alignment with the EU’s stricter AI rules. Tensions could shape whether the UK maintains a more flexible environment for innovation.

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UK announces £2.5 billion investment in AI and quantum technologies

Plans to accelerate technological leadership have been outlined by the HM Treasury and the Department for Science, Innovation and Technology, with a £2.5 billion investment targeting AI and quantum computing.

Ambition has been reinforced by Rachel Reeves, who positioned AI as a central driver of economic growth, alongside closer European ties and regional development. Strategy aims to secure the fastest adoption of AI across the G7 while supporting domestic innovation ecosystems.

Significant funding in the UK will be directed towards a Sovereign AI initiative, quantum infrastructure and research capacity. Plans include procurement of large-scale quantum systems and targeted investment in startups, helping companies scale while strengthening national capabilities in advanced technologies.

Expectations surrounding quantum computing are framed as transformative, with potential to reshape industries from healthcare to energy. Combined investment reflects a broader effort to align innovation policy with long-term economic growth and global competitiveness.

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UK Government commits up to £2 billion to quantum technologies

The UK Government has announced up to £2 billion in funding for quantum technologies, including more than £1 billion over the next four years, confirmed by UKRI in December 2025, and a new procurement programme called ProQure designed to support the scaling of quantum computing across the UK.

The announcement is being billed as the country’s ‘Quantum Leap’, positioning the UK as a first mover in quantum commercialisation.

The funding is distributed across several areas: over £500 million for quantum computing to help companies scale and develop applications in pharmaceuticals, financial services, and energy; £125 million for quantum networking; and £205 million for quantum sensing and navigation, with dedicated applications in medical diagnostics, greenhouse gas monitoring, and ultra-secure communications.

A further £13.8 million will be injected into the UK’s five National Quantum Research Hubs, with an additional £90 million for quantum infrastructure and £20 million for skills and commercialisation programmes.

techUK welcomed the announcement, noting that the UK is already home to 11% of the world’s quantum startups and has attracted 12% of global quantum private equity investment.

The trade association highlighted the ProQure procurement programme as a step in the right direction, but cautioned that sustained, long-term private investment will be essential to support deep-tech companies through lengthy development cycles.

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UK quantum ambitions get a boost as Cambridge joins forces with IonQ

The University of Cambridge has announced its largest-ever corporate research partnership, with US quantum technology company IonQ set to install a 256-qubit quantum computer at the Cavendish Laboratory, which will become the most powerful quantum computer in the UK upon installation.

The system will be housed in the newly created IonQ Quantum Innovation Centre at the Ray Dolby Centre, Cambridge’s new physics home.

As part of the collaboration, Innovate UK will provide access and computing time to UKRI’s National Quantum Computing Centre over three years, enabling researchers and early-stage companies across the UK to use the first commercial-scale quantum computer installed at a British university.

The centre’s research portfolio will span quantum computing, networking, sensing, and security.

The partnership aligns with the UK Government’s National Quantum Strategy and its five ‘Quantum Missions’, which set milestones for investment and research to secure the UK’s position as a world leader in quantum technology.

IonQ has been rapidly expanding its capabilities through acquisitions, including Oxford Ionics for $1.08 billion in September 2025 and chipmaker SkyWater Technology for $1.8 billion in January 2026.

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Green light for massive UK AI tech park

North Lincolnshire Council has granted outline planning permission for the Elsham Tech Park, a proposed AI data centre campus that would rank among the largest of its kind in the UK.

At full build-out, the site would include up to 15 hyperscale data centre buildings across 176 hectares, delivering more than 1.5 million square metres of floorspace and up to 1GW of computing capacity.

The development is expected to cost between £5.5 billion and £7.5 billion to build and could attract up to £10 billion in private investment over its lifetime.

Developer Greystoke plans to begin construction in 2027, with the first phase due to open in 2029, and the full campus to be delivered in phases over approximately a decade.

The project is also required to source at least 30% of build costs from businesses within a 30-mile radius, injecting an estimated £1.65 billion to £2.25 billion into the local economy.

The scheme received over 380 letters of objection from residents and environmental groups. Critics raised concerns, including loss of privacy for neighbouring properties, around-the-clock noise and light, and the scale of carbon emissions, with one campaign group estimating the equivalent of twice the woodland of Wales would be needed to offset the development’s environmental impact.

Permission was nonetheless granted unanimously by councillors.

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Tesla moves to enter the British household electricity market

A licence that would allow Tesla to supply electricity directly to households and businesses across Great Britain has been applied for.

The application was submitted to the national energy regulator Ofgem, which oversees energy suppliers in England, Scotland and Wales.

Approval would enable the company to enter the retail electricity market as early as next year. The service is expected to operate under the brand ‘Tesla Electric’, extending the company’s strategy of combining electric vehicles, battery storage and energy supply into a single ecosystem.

Tesla’s UK energy subsidiary, Tesla Energy Ventures, filed the application through its Manchester-based operation. Regulatory review may take several months, as Ofgem typically requires up to nine months to evaluate electricity supplier licences.

A future electricity offer could primarily target households that already use Tesla technologies, including home batteries and electric vehicle charging systems.

The company sells Powerwall storage batteries in the UK, which allow homeowners to store electricity generated by solar panels or purchased during off-peak hours.

Such systems also allow surplus energy stored in batteries to be sold back to the grid.

Similar services are already available in the US, where Tesla launched a residential electricity supply programme in Texas in 2022.

The expansion into the energy supply market comes amid pressure on Tesla’s automotive business in Europe. Sales of Tesla vehicles in the UK declined significantly during 2025, reducing the company’s share of the national car market.

Diversifying into energy services could therefore represent a broader strategic shift for the company led by Elon Musk. Integrating electricity supply with electric vehicles and home energy systems could allow Tesla to build a more comprehensive energy platform for consumers.

If approved, the initiative would position Tesla as both a technology manufacturer and a direct energy supplier in the British market.

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UK watchdog demands stronger child safety on social platforms

The British communications regulator Ofcom has called on major technology companies to enforce stricter age controls and improve safety protections for children using online platforms.

The warning targets services widely used by young audiences, including Facebook, Instagram, Roblox, Snapchat, TikTok and YouTube.

Regulators said that despite existing minimum age policies, large numbers of children under the age of 13 continue to access platforms intended for older users.

According to Ofcom research, more than 70 percent of children aged 8 to 12 regularly use such services.

Authorities have asked companies to demonstrate how they will strengthen protections and ensure compliance with minimum age requirements.

Platforms must present their plans by 30 April, after which Ofcom will publish an assessment of their responses and determine whether further regulatory action is necessary.

The regulator also outlined several key areas requiring improvement.

Companies in the UK are expected to implement more effective age-verification systems, strengthen protections against online grooming and ensure that recommendation algorithms do not expose children to harmful content.

Another concern involves product development practices.

Ofcom warned that new digital features, including AI tools, should not be tested on children without adequate safety assessments. Platforms are required to evaluate potential risks before launching significant updates.

The measures are part of the UK’s broader regulatory framework introduced under the Online Safety Act, which aims to reduce exposure to harmful online material.

The law requires platforms to prevent children from accessing content linked to pornography, suicide, self-harm and eating disorders, while limiting the promotion of violent or abusive material in recommendation feeds.

Ofcom indicated that enforcement action may follow if companies fail to demonstrate meaningful improvements. Regulators argue that stronger safeguards are necessary to restore public trust and ensure that digital platforms prioritise child safety in their design and operation.

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UK approves £7.5bn AI data centre campus at Elsham Tech Park

Plans for one of the UK’s largest AI data centre campuses have been approved in North Lincolnshire, denoting a significant investment in digital infrastructure.

The project, known as Elsham Tech Park, will be developed near Elsham Wolds Industrial Estate on the site of the former RAF Elsham Wolds airfield. The development is expected to deliver more than 1.5 million square metres of hyperscale data centre floorspace across 15 data halls, with an estimated construction cost of around £7.5 billion.

If fully developed, the campus could provide up to 1GW (1,000MW) of computing capacity, placing it among the largest proposed AI data centre facilities in the UK. The project is being led by Elsham Tech Park Ltd, a company created for the development and overseen by infrastructure developer Greystoke.

The proposed campus would cover approximately 176 hectares (435 acres) and include an on-site energy centre capable of generating up to 49.9MW of electricity. Plans also include battery storage facilities, substations, district heating infrastructure, and additional commercial space.

The masterplan incorporates a greenhouse complex that reuses excess heat from the data centre servers to support agricultural production. Developers say this approach could improve energy efficiency by enabling greenhouse cultivation using waste heat generated by computing infrastructure.

Construction is expected to begin in 2027, with the first phase of the campus scheduled to open in 2029. The development timeline covers roughly ten years.

During construction, the project could support between 2,600 and 3,600 full-time equivalent jobs annually across on-site and supply chain roles. Once operational, the facility is expected to create around 900 long-term skilled jobs.

North Lincolnshire Council said the project could attract up to £10 billion in investment and strengthen the region’s role in the country’s growing AI and cloud computing infrastructure sector.

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