The UK and the US have decades of collaboration across defence, diplomacy, and trade – some of it formal, some of it the result of a deeper alignment in how we think about innovation, markets, and global influence. As AI moves from hype to infrastructure, this moment presents a real opportunity to strengthen that relationship in a way that benefits both economies and, just as importantly, the values that underpin them.
The UK government’s recent decision to extend the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) is a step in the right direction. These are not new policies, but they remain effective tools to channel early-stage investment into high-risk, high-potential sectors – AI chief among them. For founders building here and investors looking across the Atlantic, these schemes create the conditions for long-term commitment rather than short-term speculation.
Why AI Collaboration Matters
AI is not an industry in the traditional sense, it’s a foundational technology that will shape nearly every sector, from healthcare and finance to defence and logistics. That makes it unlike previous waves of tech. It also means countries that want to lead can’t do so in isolation.
Collaboration between the UK and US in AI development is already happening, but much of it remains ad hoc or commercially driven. There’s a case to be made for more deliberate coordination. Whether through co-funded research projects, shared regulatory frameworks, or joint ventures between universities and firms, deeper transatlantic ties would unlock knowledge sharing at a scale that benefits both sides.
We’ve seen this kind of partnership before – in aerospace, biotech, and finance. AI should be no different. The UK brings academic depth, a pragmatic regulatory environment, and a long track record in computer science. The US brings scale, capital, and a well-established startup ecosystem. Bridging the two creates more than just efficiency, it creates resilience and reach.
EIS, VCTs, and the Case for Early Capital
From an investor’s perspective, the EIS and VCT schemes do more than just reduce downside risk. They create a reliable entry point into companies that may not yet be on the radar of large US funds but are working on critical, often overlooked problems.
These mechanisms don’t just incentivise domestic investors, they send a broader signal. The extension of both schemes confirms a long-term commitment from the UK government to supporting early-stage innovation, particularly in fields like AI, where sustained investment is essential. That kind of policy clarity matters. It reassures US investors that the UK remains a stable, founder-friendly environment – one that understands the value of aligning financial incentives with innovation outcomes.
In many ways, these schemes help the UK mirror elements of the US startup ecosystem offering tax-advantaged capital, predictable regulation, and a supportive funding ladder for early-stage ventures, similar to the approach taken by US policymakers to support high-growth startups.
The UK has sometimes struggled to scale its homegrown successes into global players. Creating a more coherent funding environment and signalling stability through policy can help change that.
Talent, Jobs, and Exporting Innovation
AI will not only change how we work; it will also change what kinds of companies we build. And that requires people – engineers, researchers, policy thinkers, who can navigate both the technical and ethical dimensions of the technology.
There’s huge potential in creating more structured exchanges between UK and US institutions – fellowships, cross-border hiring pathways, and joint academic programmes that accelerate the development of a shared workforce. This isn’t about exporting talent; it’s about circulating it, building experience on both sides that can feed back into stronger companies.
From a business growth perspective, EIS and VCT-backed companies should be looking to scale internationally, and the US remains the most important market for AI-driven enterprise tools and infrastructure. Supporting UK startups in setting up US operations, navigating compliance, and accessing procurement pipelines is not just good for founders – it builds bilateral trade in a future-facing industry.
Security, Supply Chains, and Sovereignty
The strategic case for AI investment is also becoming clearer. Governments are increasingly focused on supply chain security and technological sovereignty, especially in areas like defence, cybersecurity, and intelligence.
UK-US collaboration in these sectors is already strong, but AI adds urgency. Threat detection, autonomous systems, and data analysis are all becoming AI-enhanced by default. Ensuring the technology behind those systems is trusted and not dependent on adversarial regimes is a shared priority.
More broadly, diversifying the sources of foundational AI models and infrastructure – cloud, chips, frameworks is in the interest of both nations. With the right support, the UK can offer an alternative hub for secure, transparent AI development.
Looking Ahead
No single policy or funding mechanism will transform the UK into a global AI powerhouse overnight. But this is about direction of travel. Extending investment schemes like EIS and VCT, while continuing to align with the US on research, governance, and trade, offers a real pathway to leadership, not in isolation, but as part of a trusted partnership.
The UK has the talent, the track record in scientific discovery, and a financial sector that knows how to support growth, especially when it’s properly aligned with policy. The US, for its part, gains a close ally with an increasingly credible tech offering and a clear-eyed view of global risks.
Growth in the UK AI sector has the potential to not only strengthen UK-US ties, but also build a transatlantic AI ecosystem that others want to plug into.