Author: Matthew Izatt-Lowry, Head of Economics at FarrPoint
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The UK is at a key moment in shaping its future with AI
With the launch of (this will open in a new window)AI Growth Zones and a renewed focus on (this will open in a new window)public sector innovation, the opportunity to turn AI research into real-world impact has never been greater. But to do this effectively, we need to think about two powerful, interconnected cycles: Research & Development (R&D) and Adoption, and ensure they are driven by real demand.
It’s crucial to start with a clear understanding of the problem we are trying to address
The R&D cycle (Challenge → Design → Develop → Test → Solution) is where public sector innovation begins. But to be effective, it must be demand-driven. That means starting with real-world problems - like local authority productivity, NHS waiting lists, energy efficiency, or local transport network design - and designing AI solutions to directly address them.
There's a lot of work already being done to ensure that AI research is grounded in public need, not just technical possibilities, like in (this will open in a new window)this example. Such an approach ensures that public investment in R&D leads to solutions that are not only innovative but also usable, ethical, and impactful. And if a solution isn't used, it doesn't deliver impact.
So, how about the AI Growth Zones?
The Adoption cycle (Pilot → Scale → Commercialise) is where AI delivers real value to communities and businesses. This is where AI Growth Zones come in. These zones are designed to fast-track the deployment of AI infrastructure and services. By focusing on demand-led pilots - such as AI for advanced manufacturing, robotics, and advanced computing, to drive economic growth and also improve public service delivery - local authorities can test what works, scale what’s proven, and attract private investment to commercialise solutions that meet local needs.
AI and the Public Sector: better services and smarter spending
By linking R&D and Adoption, and grounding both in demand-driven investment, the UK public sector can ensure that AI isn’t just a buzzword. It has the potential to become a tool for better services, smarter spending, and inclusive economic growth.
As recent (this will open in a new window)research has shown, the future of AI in democratic societies depends on how we choose to develop and deploy it. The UK has a chance to lead it - not just in AI capability, but in real AI impact.
P.S. You don't have to figure this out on your own
At FarrPoint, we take a pragmatic approach, ensuring there is a strong connection between local needs and the solutions we design and implement for long-term impact.
Working with both public and private sector clients, we help them develop sustainable, mission-driven investments that reduce risk, ensure feasibility, and promote the long-term sustainability of AI.
To learn how FarrPoint’s demand-driven approach can help you identify the right challenges and develop solutions that deliver long-term value, get in touch.
