Podcast Summary: Can Britain Become an AI Superpower?

Podcast: Intelligence Squared
Episode: Can Britain Become an AI Superpower? The Intelligence Squared Economic Outlook (Part One)
Date: January 25, 2026
Host: Johnny Diamond
Guests: Greg Williams (former Editor-in-Chief, WIRED UK), Katie Prescott (Technology and Business Editor, The Times)

Episode Overview

This episode explores the prospects and challenges of the United Kingdom striving to become a global AI superpower. The discussion brings together two prominent tech journalists, Greg Williams and Katie Prescott, with host Johnny Diamond, to examine issues including the UK’s strengths in AI research and talent, critical weaknesses in physical infrastructure, government policy, regulation, geopolitical risks, and the quest for digital sovereignty. The conversation is both candid and pragmatic, illuminating the real hurdles and necessary moves for Britain to fully capitalise on the AI revolution.

Key Discussion Points & Insights

1. What Does It Mean to Be an “AI Superpower”?

(03:02–05:30)

• Johnny Diamond frames the UK’s ambition: third-largest AI market globally, but still trailing the US and China. He notes the country’s world-class AI researchers, startups, and robust investment flows, but asks: what does “superpower” status genuinely mean?

The UK’s Strengths and Gaps

(05:30–07:01, 07:04–09:36)

• Katie Prescott:

  “We have some brilliant, brilliant companies. And we’re very, very good at starting businesses, less good at growing them... What we don't have here... is much AI physical infrastructure. And by that I’m talking about data centers, semiconductors, really the hardware that AI is built on.” (05:30)

• Greg Williams:

  "We're just really, really good at innovation in this country... Per capita, we're probably better than the United States even... But, I think... we need to sort of really seize the moment. We have strategic advantages, we have capital, and we have like a brains trust." (07:04)

• The UK excels in research, early-stage innovation and startup creation but struggles to scale businesses.

2. AI in Practice: How Will It Change the UK?

(09:36–11:41)

• Katie Prescott:

  “Being an AI superpower is about how we use it across the board. And we've got incredible strengths... in financial services, in the law... healthcare.” (09:36)

• On AI transforming government and healthcare (10:36):

  “The government’s rolled out a tool called Humphrey... which has reduced the number of people and the amount of time it takes to go through policy consultations... [and] in radiology... it can be more reliable actually to use a computer to look through information that doesn’t get tired.”

3. The Infrastructure Dilemma

(11:26–15:16)

• Greg Williams on hardware shortfall:

  “We need to increase compute by 20x by 2030... We need to bring in planning laws where we can build data centers with energy infrastructure next to them... At the moment... the National AI Plan is thinking about situating data centers next to sources of abundant energy...” (11:41)

• Katie Prescott on energy and localisation:

  “Jensen Huang... said the UK is the only AI superpower that doesn’t have infrastructure. I think it becomes a problem when you’re talking about very sensitive information that you would probably want to store in the UK, so when it comes to healthcare, defense... If you don’t want to put that on foreign soil, then it is an issue.” (13:44) “Our energy infrastructure is already creaking. The rise of AI is coinciding with the rise of electrification of cars. The pressure on the national grid is absolutely massive.” (14:19)

4. Policy, Investment, and the Brain Drain

(16:45–19:54)

• Katie Prescott on governmental response:

  "There was a lot of irritation around the budget in... the entrepreneurial community as a whole, but especially in tech, a sense that they didn't quite know the direction of travel... focus from government has been on innovation within the public sector rather than promoting AI companies themselves..." (16:56)

• Greg Williams notes: government is slow, but recent policies may help push institutional investment into UK tech, e.g., pension fund investment in R&D; infrastructure remains a tough, slow-moving challenge.

• On the perennial problem of scaling:

  “So much of the things we complain about — the fact that British businesses get to a certain size and sell out to America, the fact that it is very hard to find funding at a certain point in a business’s growth... haven’t really changed.” – Katie Prescott (19:19)

5. Geopolitics and Digital Sovereignty

(20:47–23:36)

• Host raises the issue: Can the UK still rely on the US as a stable technology ally?

• Katie Prescott:

  “It’s absolutely terrifying. A year ago... we would never have considered the idea that the US government might put pressure on big tech companies to stop their services… 80% of our cloud here in the UK is hosted by Microsoft and Amazon, and then 10% by Google. That’s absolutely vital, critical infrastructure... With the special relationship, in the past, we would not have been so concerned.” (21:26)

• European governments, especially France, are seeking digital sovereignty. France’s support for their AI company Mistral as a national champion is cited as a potential blueprint.

6. Audience Poll: What Holds the UK Back?

(27:16–29:13)

• Audience voted on key obstacles: brain drain, energy costs, regulation and red tape, the AI bubble.
• Regulation and red tape comes out top.

On Balancing Regulation:

• Katie Prescott:

  "When it comes to tech in general, we are really crap at regulation and we tend to be running to catch up after the event... But actually, Britain’s doing a really cool job. We're sort of in the… Goldilocks ‘just right’ territory... We've decided to outsource [AI regulation] to our regulators... So, for example, Ofcom is responsible for regulating AI for the media and the Financial Conduct Authority… for financial services." (29:13)

• Greg Williams:

  "The UK has actually done a really good job on regulating... What we’re doing is we’re looking at the application of the technology and that is exactly the right approach.” (31:20)

7. Trust, Safety, and the Information Sphere

(31:20–34:54)

• Greg Williams shares a poignant anecdote:

  "I had a meeting with someone… in Davos, who was from a... research group into AI. And he sat and wept and he said, ‘I'm so scared, I'm so worried.’ Meanwhile… others are saying, there is no risk. This is all fine." (31:20)

• The panel agrees that public trust and safety are essential, but so is clarity over copyright and the protection of creative industries.

• Katie Prescott on the copyright crisis:

  "If you look at the eradication and the destruction of the media industry because of the theft of information by AI companies and our lack of ability to regulate that, it’s crazy... The New York Times is suing Microsoft and OpenAI in the US over the theft of their copyright." (33:02)

• The “opt out” approach puts the burden on creators, not AI companies. The UK’s creative industries are an export superpower and their economic incentives are under threat.

8. Is True Sovereign AI Possible?

(35:26–36:24)

• Katie Prescott:

  “If you are America, you can have sovereignty over your tech... But I think it’s very difficult if a company is headquartered somewhere, and then its services used somewhere else, to create purely, totally sovereign AI.” (35:46)

Notable Quotes & Memorable Moments

• Greg Williams:
  "We are fantastically good at [innovation]. Per capita, we're probably better than the United States even." (07:04)

• Katie Prescott:
  "We have a lot of the ingredients to make this superpower cake, for want of a better word. But there are still some things that are holding us back." (05:30)

• On risks of dependency:
  "80% of our cloud here in the UK is hosted by Microsoft and Amazon... that's absolutely vital, critical infrastructure." – Katie Prescott (21:26)

• On AI trust and safety:
  “Huddersfield Hospital now can do a radiology scan that can identify lung cancer far more accurately than human eye can in seven seconds. So those kinds of wins — people need to feel like they can trust AI, and they need to experience it in ways that are positive for them.” – Greg Williams (12:57)

Timestamps for Important Segments

• 03:02 — Introduction of panel and the “AI superpower” question
• 05:30 — Defining superpower status and UK’s strengths/weaknesses (Prescott)
• 07:04 — UK’s innovation, global outlook, national data assets (Williams)
• 10:36 — Real-world government and healthcare AI use (Prescott)
• 11:41 — Infrastructure challenges; energy and planning obstacles (Williams)
• 13:44 — Nvidia’s view, UK’s hardware/energy shortfall (Prescott)
• 16:56 — Tech sector’s view on government efforts and taxation (Prescott)
• 19:19 — Historical challenges in scaling British tech (Prescott)
• 21:26 — Geopolitics and UK’s dependency on US infrastructure (Prescott)
• 29:13 — Regulation and where the UK stands globally (Prescott, Williams)
• 31:20 — Trust, AI safety, and information ecosystem risks (Williams)
• 33:02 — Copyright and creative industry threat (Prescott)
• 35:46 — Can the UK have true sovereign AI? (Prescott)

Conclusion

The debate underscores that the UK possesses world-leading research talent, a vibrant startup scene, and some policy innovations. However, its ambitions are hampered by a lack of physical infrastructure, chronic energy constraints, difficulty scaling companies, and geopolitical vulnerabilities regarding digital sovereignty and dependency on foreign tech giants. The panel agrees that the UK must play to its regulatory strengths, foster trust and innovation, urgently address energy and data center needs, and support its creative and entrepreneurial communities if it wishes to genuinely compete as an AI superpower in the rapidly evolving global landscape.

For listeners seeking a comprehensive yet accessible analysis of Britain’s place in the AI race, this episode delivers sharp insights into both promise and peril, blending optimism with sober realism.