Home Economy Major new UK–EU partnership to boost AI adoption and economic growth

Major new UK–EU partnership to boost AI adoption and economic growth

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A new €10 million (£8.6 million) initiative will accelerate the use of artificial intelligence (AI) in British science, business, and public services, marking a major collaboration between the UK and the European Union.

The University of Edinburgh’s EPCC, home to the UK’s first National Supercomputing Centre, has been awarded joint EU and UK Government funding to establish the UK AI Factory Antenna (UKAIFA) — part of a pan-European network designed to foster innovation, research, and practical adoption of AI across industries.

The project, coordinated by the European High Performance Computing Joint Undertaking (EuroHPC JU), aims to help UK businesses and researchers take their first steps in using AI to improve productivity and unlock new economic potential. It will focus on raising digital literacy, providing technical expertise, and creating a pathway for companies to embed AI safely and efficiently within their operations.

The AI Factory Antenna will employ 20 full-time staff at EPCC, offering services to startups, SMEs, large industrial firms, and public sector organisations. Its mission: to help organisations identify where AI can deliver tangible value — from automating administrative tasks to analysing complex data at scale.

With support from the Department for Science, Innovation and Technology (DSIT), which is contributing £2.5 million, the initiative will play a key role in ensuring the benefits of AI extend beyond the laboratory to real-world applications across the economy.

UKAIFA will target several strategic growth sectors, including health, fintech, energy, creative industries, advanced engineering, and robotics.

Professor Sir Peter Mathieson, Principal and Vice-Chancellor of the University of Edinburgh, said: “This significant investment underlines Edinburgh’s world-leading capabilities in supercomputing and AI. It also shows the important role universities play in deepening our understanding of cutting-edge technologies, blazing a trail for industry and the public sector, and driving economic growth and job creation.”

A bridge between UK and European AI innovation

The UK’s new AI Factory Antenna is part of the EU’s AI Factories initiative, which brings together computing, data and talent to accelerate AI development for the benefit of society.

Through the programme, non-EU countries such as the UK can collaborate with established AI Factories on shared research and innovation goals. The UKAIFA will work in partnership with the HammerHAI AI Factory, coordinated by the High-Performance Computing Center Stuttgart (HLRS) — Germany’s first National Supercomputing Centre — and supported by a consortium of major German academic institutions.

Professor Mark Parsons, Director of EPCC and UKAIFA Lead Coordinator, said: “EPCC and HLRS have led the use of national supercomputing services in Europe by industry for the past 30 years. The emergence of AI as a key application of supercomputing — and this joint funding from EuroHPC and the UK Government — allows us to embark on an exciting new collaboration. We’re honoured to be working with HLRS and the University of Stuttgart again.”

Dr. Bastian Koller, Managing Director at HLRS and Lead Coordinator of HammerHAI, added: “Given the shared commitment and expertise that HLRS and EPCC have in bringing HPC and AI to industry, the UKAIFA is a perfect match for HammerHAI. It enables us to focus on the most urgent challenges European companies face in adopting and scaling AI applications.”

The launch comes as Edinburgh cements its reputation as one of the UK’s leading technology and innovation hubs. The city is already home to ARCHER2, the UK’s most powerful national supercomputer, and is set to host an even more advanced system under development.

Kanishka Narayan, UK Government AI Minister, said: “This is another step in our plan to transform the UK into an AI maker. By working with our neighbours, we’re giving our best and brightest access to the processing power, data and training needed to drive breakthroughs in everything from healthcare to climate change.”

The UK AI Factory Antenna is expected to begin operations early next year, creating a bridge between academia, industry and government — and a new model for international cooperation in the age of artificial intelligence.

Dennis Hoppe, Head of HLRS’s Department of Converged Computing and project manager of HammerHAI, said: “Together, we will help accelerate AI adoption, providing secure and scalable AI resources for academia and business. This partnership represents a major step forward for AI innovation across Europe.”

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