UK Officials Said AI Would Add £400 Billion to the Economy. That Figure Mainly Came From Google
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The UK government has admitted that its widely cited projection of a £400 billion economic boost from AI was based on a report commissioned by Google, rather than official independent analysis. AI Minister Kanishka Narayan revealed that the government's actual central estimate for AI's contribution to the economy by 2030 is significantly lower, at approximately £120 billion. This admission highlights a discrepancy where officials used the inflated Google-funded figure for nearly two years despite having access to more conservative internal assessments since late 2025. Experts and politicians have criticized the initial claim as hype, noting that overstating benefits risks undermining public trust and policy credibility. The consultancy firm PF Global attributed the difference in figures to the government's slower-than-expected adoption rate of AI technologies compared to their original 2023 models. Critics argue this incident reflects a broader issue of industry-funded research shaping government narratives without sufficient independent verification. Consequently, there are growing calls for ministers to test data sources rigorously and prioritize transparency regarding the origins and assumptions behind economic projections.
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