An analysis of AI companies operating in the UK has flagged that “too many” focus on improving existing business processes rather than pursuing exciting innovations that could change people’s lives for the better.
The Institute for Public Policy Research (IPPR) has built a database of 3,256 AI firms that operate in the UK. It includes information on the type of applications, sectors, and specific challenges these AI companies focus on.
By analysing this data, the think tank found that 85 percent of AI of companies do not focus on specific problems or specific sectors but offer ‘generic’ AI solutions, which it said means the full potential of AI is not being realised.
In a report on its findings, IPPR said too many firms focus on improving existing business processes, such as creating efficiencies for back-office tasks that could reduce head count in areas like marketing, customer management and administration. It found that “too few” firms focus on building something new and exciting, such as innovations that could tackle ill health earlier in life.
The think tank also said that while one in five AI firms have received public funds at some point, only 15 percent of them focus on solving specific societal problems like delivering better, sustainable transport or improving public health.
But the UK can still leverage its strength as a leading AI hub, IPPR said, and develop more companies focused on the public good.
The think tank highlighted an “encouraging number” of UK firms developing “breakthrough technologies”, that, with more government support, could help give the UK AI industry a sense of purpose and direction.
IPPR pointed to the example of Health Navigator (HN), which uses AI to predict hospitalisations. It said that such developments could play a role in helping the government achieve its milestone in reducing waiting lists.
But the think tank said that although the government wants to “shape the AI revolution rather than wait to see how it shapes us” via its AI Opportunities Action Plan, more intervention is needed if it wants to drive real social impact.
In its report, IPPR warned that the current pipeline of AI innovation “lacks clear direction towards social objectives”.
To remedy this, it urged the government to take “a more activist role” by setting up a new AI Tracking Unit in government. This unit would map what types of AI deployment are happening and identify where there are gaps.
This would help the government “steer” AI innovation to focus on ‘problem areas’ by using Innovate UK’s grant-making powers and the British Business Bank. Public funding would then focus on AI firms that better match the government’s missions, IPPR said.
The think tank also recommended that the government should use its procurement budget to “make a market” for breakthrough AI innovations by supporting firms that solve specific problems.
Carsten Jung, head of AI at IPPR, said: “AI progress continues to accelerate at an unprecedented pace and is poised to have a seismic impact on economy and society. The government has said it wants to ‘shape the AI revolution’ but currently much of AI innovation is generic and not focussed on solving hard problems.
“Too many companies are focussed on generic process improvements rather than coming up with new, better products. And too few innovations are aimed at solving big societal problems, such as public health and climate change. This quantity over quality, profit over purpose, speed over substance, approach is a huge missed opportunity.
“The dearth of breakthrough AI innovation is partly a result of innovation policy, which has often been unfocussed and risk averse. 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.”
Hugh Lloyd-Jukes, chief executive at HN, said: “HN exists to help patients stay out of hospital and lead healthier, longer lives. We believe the published evidence shows that our service can support the government’s healthcare priorities nationally – as well as health systems around the world.”
Lloyd-Jukes said his firm was 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, in partnership with UCLPartners.
He said: “Ten 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. Patients report a much more positive care journey and better care outcomes following contact with HN.”
