Artificial intelligence is reshaping Britain’s economy, with digital construction positioned as a critical beneficiary.
On Wednesday 28 January 2026, Secretary of State for Science, Innovation and Technology Liz Kendall delivered a speech at Bloomberg, setting out the government’s vision for Artificial Intelligence (AI) as a driver of national prosperity, resilience and global influence. While framed as a cross-economy strategy, the implications for the digital construction sector are significant, particularly around AI adoption, data infrastructure, skills and productivity.
As Kendall stated, “We are at a defining moment for Britain: our place in the world and our future prosperity.” For construction, an industry central to national infrastructure, housing delivery and net zero ambitions, this moment could be transformative.
AI as an engine of economic power
The government’s position is clear: AI is now “the engine of economic power and of hard power.” Rather than focusing solely on technological supremacy, the UK’s strategy prioritises real-world adoption, productivity gains and societal value.
This approach aligns closely with the needs of digital construction. AI-driven design optimisation, predictive maintenance, automated compliance checking and robotics-enabled site operations are already reshaping how built environment projects are delivered. The emphasis on adoption over scale presents an opportunity for construction firms to integrate AI tools across planning, delivery and asset management.
Kendall underscored that the race the UK should focus on winning is “on adopting AI – on getting AI to actually be useful to people and to drive innovation.”
Britain’s strategic advantages in AI and infrastructure
The speech highlighted Britain’s competitive strengths: world-leading universities, a $1 trillion tech ecosystem, deep data resources and a pragmatic regulatory environment. For construction technology providers and digital engineering consultancies, this combination supports faster innovation and commercialisation.
The role of the AI Security Institute (AISI) is particularly relevant for construction clients operating in regulated environments, from transport infrastructure to healthcare estates. Secure, trustworthy AI is essential when systems influence safety-critical decisions, such as structural monitoring or asset lifecycle planning.
Kendall positioned the UK as “a beacon to the world” on AI standards and deployment, reinforcing confidence for organisations investing in long-term digital construction platforms.
The AI Action Plan and Growth Zones
One year on from the publication of the UK’s first AI Action Plan, the government reports that three quarters of its commitments have been delivered. Central to this is compute infrastructure.
Four AI Growth Zones have already been launched in Culham, the North East, and North and South Wales, with more planned. These zones aim to create over 10,000 jobs and generate £100 billion of investment. For construction, this translates into demand for digitally enabled infrastructure delivery, advanced manufacturing facilities and data centre development.
The government has also committed up to £750 million for a new national supercomputer in Edinburgh and expanded the AI Research Resource by 20-fold, backed by £1 billion. These investments underpin AI-enabled simulation, digital twins and large-scale modelling, all increasingly central to modern construction projects.
Unlocking data for the built environment
Data is positioned as a strategic national asset. The creation of the National Data Library and the Health Data Research Service demonstrates how large-scale, secure datasets can drive innovation.
While not construction-specific, the approach signals future opportunities for built environment data integration, particularly across public estates, infrastructure assets and planning systems. Secure data-sharing frameworks are essential for AI-driven asset management, carbon modelling and predictive maintenance across the construction lifecycle.
Supporting start-ups and scaling construction innovation
Addressing the UK’s scale-up challenge, Kendall outlined reforms designed to keep high-growth companies in Britain. These include expanded Enterprise Management Incentives, increased venture capital investment limits and stamp duty exemptions for newly listed firms.
For construction technology start-ups, particularly in AI-driven design, project controls and robotics, these measures reduce barriers to growth. The newly announced Sovereign AI Unit, backed by £500 million and chaired by James Wise of Balderton Capital, will invest directly in UK AI companies, operating “with maximum autonomy” to move at market speed.
Kendall’s message to founders was unequivocal: “You are our future and we will do everything we can to back you.”
Adoption, productivity and digital construction
Drawing on historical precedent, Kendall argued that economic leadership comes not from invention alone, but from widespread adoption. The ambition is to make Britain “the fastest adopting AI country in the G7.”
Construction is directly addressed through the Modern Industrial Strategy, with AI positioned as a productivity driver across advanced manufacturing, defence and clean energy. Each AI Growth Zone will receive £5 million to support local business adoption, while Innovate UK’s BridgeAI programme is being expanded to accelerate safe deployment.
Regulatory reform is also central. The new Regulatory Innovation Office and AI sandboxes aim to remove unnecessary barriers, enabling real-world testing of technologies such as robotics and autonomous systems, both highly relevant to construction sites and public realm operations.
AI, skills and the construction workforce
Acknowledging concerns about job displacement, Kendall stressed that “whilst change is inevitable, the consequences are not.” AI will change construction roles, automating repetitive tasks while increasing demand for digital, analytical and systems skills.
The government has increased its AI upskilling ambition to 10 million workers by 2030, including at least 2 million in small and medium-sized businesses. Programmes such as TechLocal, supported by £27 million, aim to bring more people, particularly women, into entry-level tech roles.
For construction, this signals a growing talent pipeline for digital engineering, data management and AI-enabled project delivery.
The UK’s AI strategy prioritises adoption, skills and infrastructure, creating clear opportunities for digital construction to drive productivity, resilience and long-term national prosperity through responsible, data-driven innovation.
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