Big Tech market power will cause UK to lose AI race, think tank warns
A think tank has warned that the market power of major technology companies is weakening competition in the UK and could prevent the country from capturing the economic benefits of artificial intelligence. The Institute for Public Policy Research argues that the Competition and Markets Authority needs clearer political backing to intervene more quickly and forcefully, rather than relying on voluntary commitments. It says the issue matters because AI is central to the government’s growth plans, yet British firms increasingly depend on infrastructure owned by overseas giants.
The report says 79 per cent of UK businesses using digital platforms fear Big Tech could use its dominance to restrict competition, placing this concern above access to finance or talent. Google accounts for more than 90 per cent of UK searches, while Microsoft and AWS each hold roughly 30–40 per cent of cloud customer spending; AI infrastructure is also concentrated around Nvidia and the large cloud providers. Microsoft, Google and Amazon have invested more than $20 billion collectively in leading AI developers, partnerships already identified as potential competition risks by UK and US regulators.
- Big Tech dominance may limit the UK’s AI gains.
- IPPR urges stronger, faster CMA enforcement.
- Businesses rank market power above finance and talent concerns.
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Artificial intelligence relies on computing power, data and online services, much of which is supplied by a small number of large technology companies. UK businesses often depend on these firms for search, cloud computing and the infrastructure used to develop and run AI.
The Institute for Public Policy Research is a UK think tank that studies public policy. It says the Competition and Markets Authority, the UK’s competition regulator, needs stronger support to address the influence of major technology firms, including through action beyond voluntary commitments.
The debate matters because the government sees AI as a potential source of economic growth, while many British firms rely on infrastructure owned by overseas companies. If a few suppliers have substantial control over that infrastructure, it could affect the ability of other businesses to compete and share in AI’s economic benefits.
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The case for
Concentrated control of search, cloud computing and AI infrastructure could leave UK firms dependent on a few overseas providers, which may shape access, prices and the terms on which businesses compete. Clearer political backing for faster CMA intervention could address these risks and help British firms share more fully in AI’s economic gains.
The case against
Large technology firms’ scale and investment can provide the computing power, research and reliable services that businesses need to develop and use AI. Stronger or faster intervention based on potential risks could deter investment, disrupt useful partnerships and impose costs on firms, so regulators should weigh specific evidence of harm against the benefits of competition through innovation.