Three months into 2025, it has already been an eventful year for artificial intelligence (AI). The Trump administration announced half a trillion dollars of investment into the sector, while Chinas DeepSeek almost tore it all down, surprising everyone with a low-cost generative AI (GenAI) model.Meanwhile, the recent AI Summit held in Paris saw lines being drawn on regulation between Europe and the UK.Given the circumstances, it's understandable that some have overlooked the UK government's AI Action Plan. It was launched in January by Keir Starmer at Queen Elizabeth Olympic Park, setting out 50 measures aimed at making the UK an irresistible destination for AI firms. With over 14bn committed to the plan, the government wants to position the UK as a global leader in the adoption of artificial intelligence.The potential rewards are vast and well documented. The International Monetary Fund estimates that if AI is fully embraced, it could boost UK productivity by as much as 1.5 percentage points per year. These gains could contribute up to 47bn annually to the UK economy over the next decade.However, a major challenge looms - time. More specifically, the time needed to effectively integrate AI into our infrastructure and businesses. According to Global Data, the AI market is projected to surpass $1tn by 2030, with AI embedded in every organisation. But will that be the case? The recent decision to delay the UKs AI Bill, set for March, by six months to align with the incoming US administration exemplifies this best - a missed opportunity.Businesses thrive on stability and clear regulatory frameworks - postponing legislation undermines confidence at a critical moment and could deter investment and adoption of the technology. The UK cannot afford to rely on broad commitments without tangible specifics.Despite the ambitious goals of the UKs AI Action Plan, questions arise around the specifics of the plan, and whether they will enable widespread adoption. Sectors such as manufacturing, healthcare, and finance have already begun integrating AI, yet the same cannot be said for other industries. With fewer than 30% of workers currently engaging with AI in their roles, the UK must accelerate its efforts to drive AI adoption at scale.The UK should go beyond mirroring US ambitions for big tech dominance. The real opportunity lies in the adoption of AI. To remain competitive, businesses will have to embrace AI as a fundamental tool for long-term success. The UK risks an AI divide - where large corporations capitalise on AIs potential while smaller businesses miss out Gavin Poole, Here EastInvesting in skills development, fostering cross-functional collaboration across the public and private sectors, and creating AI-friendly policies will be crucial in ensuring that companies of all sizes can benefit from AI innovations. Without these initiatives, the UK risks an AI divide - where large corporations capitalise on AIs potential while smaller businesses miss out.The UK should therefore prioritise the integration of frontier technologies, like AI, into its key sectors, where it can create palpable long-term growth through practical AI implementation.At our innovation campus, Here East, were speaking with leaders in AI and wider frontier technology about how we leverage the UKs existing tech strengths to drive economic growth - precisely the kind of conversation that must shape national AI policy.The governments delay in AI regulation reflects a strategic effort to align with the US, but it risks creating uncertainty in the UK. While international collaboration on AI policy is important, clear and timely domestic regulation is necessary to maintain the UKs competitive edge. Businesses need confidence in the regulatory environment to invest, innovate, and scale AI-driven solutions.AI adoption must also be grounded in sustainability and ethics.Thriving in the GenAI era requires a robust framework that respects creative freedom, ensures privacy, and fosters trust. The government continuing to deliberate, seen with the recent issues surrounding AI and copyrighting in the creative sector, will not help solve this issue.The UK has an opportunity to lead in responsible AI implementation, balancing innovation with safeguards that protect consumers and businesses alike. Collaboration between policymakers, businesses, and universities is therefore essential to fostering AI adoption that is both ambitious and sustainable.Economic projections reinforce the urgency of decisive action. AI has the potential to drive significant productivity gains, but without a clear regulatory framework, these benefits may not be fully realised. The UK must ensure that AI regulations do not stifle growth but instead create an environment where businesses can thrive while adhering to ethical and legal standards.AI has the potential to deeply embed itself across our world-beating industries and help drive a fundamental shift in UK productivity. The latest ONS UK productivity figures paint a concerning picture - only three out of 18 industries saw productivity gains, while key sectors such as retail, energy, and healthcare experienced declines of over 4%.British workers have consistently lagged behind their counterparts in other advanced economies in terms of productivity, turning what was once a long-term concern into an urgent crisis. Without intervention, this "quicksand" problem could derail the UKs broader economic growth.To combat this, the UK must proactively invest in frontier-focused education, workforce development, and AI-driven productivity enhancements to capitalise on this transformation. As new technologies such as AI agents transform our day-to-day, reskilling workers and ensuring a smooth transition for those affected by AI-driven changes will be paramount.AI alone will not solve the UKs productivity challenges. Businesses need more than broad promises - they require tangible incentives and clear guidance on AI adoption. AI-powered tools, such as automated CV screening, mean little if they do not translate into genuine productivity gains. Without decisive action, the UK risks an AI adoption gap, where only well-resourced firms reap the benefits, leaving smaller businesses behind.The UK must shift its focus from simply keeping pace with AI investments in the US and China to leading in AI adoption and application. Rather than chasing capital-heavy AI development projects dominated by larger economies, the UK should capitalise on its unique strengths - research excellence, a strong startup ecosystem, and a history of innovation.The government has laid out a promising foundation in a turbulent time for artificial intelligence. However, if it truly wants to make the UK an AI powerhouse, it must deliver at speed. The window of opportunity is open - but it will not remain so indefinitely.Read more about the UK government's AI plansGovernment opens up bidding for AI growth zones - As part of its AI opportunities action plan, the government is encouraging local authorities to put in bids for AI growth zones.UK government unveils AI-fuelled industrial strategy - Labour plans to implement the 50 recommendations set out by entrepreneur Matt Clifford to boost the use of AI in the UK.Government funding to help businesses discover AI value - The government is betting the bank on the power of artificial intelligence to fix the public sector, mend roads and boost the UK economy.