Despite a significant government-driven focus on AI innovation in the UK, the proportion of companies contributing towards the public good is disappointingly low, according to a new report from the Institute for Public Policy Research (IPPR).
Findings from an IPPR database of 3,256 UK-based AI firms reveal that the vast majority (85 per cent) are not focusing on specific problems or specific sectors – and are instead working on ‘generic’ AI solutions.
In January, the UK government unveiled its AI Opportunities Action Plan, which aims to establish the UK as an ‘AI superpower’ and leverage AI technology to drive economic growth. The plan also outlined an ambition to benefit everyday working people by improving healthcare and education, and increasingly use AI throughout people’s working lives to create new opportunities – instead of threatening traditional patterns of work.
However, the new IPPR report shows that these plans are far from becoming a reality. Instead, it finds that many AI firms are focused on improving existing business processes, such as creating efficiencies for back-office tasks to reduce head count in areas like marketing, customer management and administration.
In the report, the think tank explains that AI-driven innovations could go a long way in tackling ill health early in life or focus on solving other specific societal problems like delivering better, sustainable transport. But just 15 per cent of AI companies in the UK are currently doing so.
“Too few innovations are aimed at solving big societal problems, such as public health and climate change,” explains Carsten Jung, head of AI at IPPR. “This quantity over quality, profit over purpose, speed over substance, approach is a huge missed opportunity”.
Considering that one in five companies are receiving public funds, IPPR suggests that the proportion of companies actively focusing on doing societal good should be much higher, and given the aims of its AI Action plan, it’s fair to ask whether the government should be pushing more of these companies in that direction.
A necessary reality check
Joe Davies, founder of fatjoe
“The IPPR’s findings aren’t surprising, but they are a necessary reality check,” says Joe Davies, founder of fatjoe, the SEO and content marketing platform, in reaction to the report. “Right now, too many AI companies are pouring their energy into narrow-use cases like internal automation, data sorting, and generic efficiency upgrades. These might improve profit margins, but they don’t move the needle in terms of real-world impact.”
Davies says that while these companies are often publicly funded in their early stages, there’s not enough accountability when it comes to giving back in the form of public-good applications – especially in critical areas like healthcare, education, and sustainability.
“The UK has the talent, the infrastructure, and the funding to lead globally in ethical, purpose-driven AI, but it needs clearer incentives and expectations. Tax relief or fast-tracked R&D support could be tied to impact-driven benchmarks. Public-good innovation should be a competitive advantage, not an afterthought.”
The UK is currently the leading generative AI patent hub in Europe, and could build on these strengths to develop more companies focused on the public good.
AI driving a healthcare turnaround
The government also must ensure it doesn’t forget about the firms already working on breakthrough technologies. Offering these firms more support could enable them to lead the way in giving the UK AI industry a sense of purpose and direction.
The IPPR highlights the role of Health Navigator (HN), a healthcare service innovator, which is leveraging AI to predict hospitalisations. HN says it can play a role in helping the government to reduce NHS waiting lists.
Hugh Lloyd-Jukes, chief executive at Health Navigator
“HN exists to help patients stay out of hospital and lead healthier, longer lives,” says Hugh Lloyd-Jukes, chief executive at Health Navigator. “HN is proud to support NHS North East London to deliver proactive population health management to 2.5 million Londoners as part of the NHS’ National Demonstrator for AI-guided Clinical Coaching, working in partnership with UCLPartners.
“10 years of published research within the NHS has shown that deployment of HN‘s technology and its Personalised Care Institute (PCI) accredited health coaches can reduce A&E attendances, hospital admissions and the length of hospital stays.”
In its report, IPPR also highlights that, of the specialised healthcare applications, only 12 per cent of AI innovations are in the preventative space. It argues that the UK needs to shift away from a reactive ‘sickness model’ to a proactive ‘health creation system’ that focuses on preventing illness through workplaces, communities, schools and everywhere people spend lots of time.
It draws attention to EatingAI, a company founded in 2019 that integrates AI with nutrition science to offer tailored food recommendations, calorie tracking and insights into eating habits. While this helps users monitor their nutrition without manual effort, IPPR argues that future tools should link further with community initiatives and local services and address the underlying causes of crucial issues, such as childhood obesity.
Developing data infrasture
Boris Bialek, VP and field CTO of database program provider MongoDB, says that the UK needs to focus on strengthening data infrastructure to ensure applications that benefit social good can operate well.
Boris Bialek, VP and field CTO of MongoDB
“I hear from customers repeatedly: data quality and infrastructure remain the most critical challenges in AI development. A retail partner told me that when going live on their first AI solution that whatever they built today is obsolete the second they deploy. But the data platform is fundamental and needs to stand the test of time.
“This challenge is especially acute in healthcare, where crucial data remains trapped in legacy systems. The UK urgently needs strengthened data infrastructure to support public-benefit AI applications. Quality data resources across critical sectors would dramatically lower barriers for startups addressing societal challenges.
“The UK’s strong foundations in AI research and development position it well for the future. Through thoughtful collaboration between industry, government, and academia, we can develop AI applications that deliver both commercial success and meaningful public benefits.”
Solving societal challenges
To ensure the UK can sufficiently pivot towards focusing more AI innovation towards solving healthcare challenges and beyond, the IPPR says the government should take a more activist role to give the sector a sense of purpose and direction. To achieve this, IPPR recommends:
Setting up a new AI tracking unit, to map out different types of AI deployment and where the gaps are
Steering AI innovation to focus on ‘problem areas’ by using Innovate UK‘s grant-making powers, and the British Business Bank, to focus funding on AI firms which align with the government’s missions
Directing the government’s procurement budget to ‘make a market’ for breakthrough AI innovations by backing companies that solve specific problems, and making the government a more dynamic player in rewarding innovation
Jung adds: “The government has many levers to steer the UK AI industry towards fixing hard problems.
“With a push in the right direction, UK companies could lead the world in developing AI that serves the public good—enhancing sustainability, improving healthcare outcomes, and boosting opportunity.”
The post Are UK AI firms Wasting Time Focusing on Generic Solutions, When They Could be Doing Societal Good? appeared first on The Fintech Times.
