Data is the lifeblood of artificial intelligence (AI) and as such is a hugely valuable resource. Entrepreneur Matt Clifford's report on the AI Opportunities Action Plan , commissioned by the UK government, has set out some ambitious recommendations for unlocking UK public data to power AI development - and serve as a state asset.
Authors
- Ashley Braganza
Professor of Business Transformation, Brunel University of London
- S. Asieh H. Tabaghdehi
Associate Professor (Senior Lecturer) in Strategy and Business Economy, Brunel University of London
Making UK-owned datasets available for training AI, according to innovation secretary Peter Kyle , could help the country become a global leader in the technology. The government has accepted all 50 recommendations in the action plan.
But the plan lacks a clear strategy to ensure that UK citizen-generated data - which could include anything from crime and healthcare information to local authority data - serves as a public asset rather than merely a source of private profit.
The government's planned National Data Library (NDL) could address this effectively. In evidence we presented to the government, we set out how the NDL should be structured, managed and monetised in the form of a UK sovereign data fund. This would ensure that the value derived from AI is retained responsibly and reinvested for wider public benefit.
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Across all sectors, UK citizens produce vast amounts of data. This data is increasingly needed to train AI systems . But it is also of enormous value to private companies, which use it to target adverts to consumers based on their behaviour or to personalise content to keep people on their site.
Yet the economic and social value of this citizen-generated data is rarely returned to the public, highlighting the need for more equitable and transparent models of data stewardship.
AI companies have demonstrated that datasets hold immense economic, social and strategic value. And the UK's AI Opportunities Action Plan notes that access to new and high-quality datasets can confer a competitive edge in developing AI models. This in turn unlocks the potential for innovative products and services.
However, there's a catch. Most citizens have signed over their data to companies by accepting standard terms and conditions. Once citizen data is "owned" by companies, this leaves others unable to access it or forced to pay to do so.
Commercial approaches to data tend to prioritise short-term profit, often at the expense of the public interest. The debate over the use of artistic and creative materials to train AI models without recompense to the creator exemplifies the broader trade-off between commercial use of data and the public interest.
Countries around the world are recognising the strategic value of public data. The UK government could lead in making public data into a strategic asset. What this might mean in practice is the government owning citizen data and monetising this through sale or licensing agreements with commercial companies.
In our evidence, we proposed a UK sovereign data fund to manage the monetisation of public datasets curated within the NDL. This fund could invest directly in UK companies, fund scale-ups and create joint ventures with local and international partners.
The fund would have powers to license anonymised, ethically governed data to companies for commercial use. It would also be in a position to fast-track projects that benefit the UK or have been deemed to be national priorities. ( These priorities are drones and other autonomous technologies as well as engineering biology, space and AI in healthcare.)
At the heart of the sovereign data fund, there would be a broad social mission. This would allow it to invest its profits to fund projects that work towards improved healthcare provision, greater social mobility and digital inclusion, as well as better digital infrastructure. The fund could also support job creation and help cover the costs associated with widespread AI adoption.
A data-driven sovereign fund could become a key fiscal instrument, especially in light of the £400 billion windfall expected from AI adoption in the UK by 2030. Establishing such a fund could ensure that innovation is coupled with effective regulation and social responsibility. Importantly, this model could also prevent public datasets from becoming undervalued giveaways to foreign-owned entities.
Of course, many citizens may have valid concerns about how their data is used and monetised. Ethical safeguards should be embedded into the system through clear rules and protocols that prevent misuse at the point of data access.
Gaining public trust
Public confidence in how citizen data is handled will be vital. Trust should be at the heart of AI governance . While unlocking data can accelerate AI development, it also raises legitimate public concerns around surveillance, manipulation, discrimination and exploitation.
The sovereign data fund model can help mitigate these risks by offering transparent and accountable structures for managing public data, while ensuring that the benefits are shared equitably. This business model ensures clarity around data ownership by affirming that citizens remain the primary beneficiaries of the data they generate.
It will require a commitment to licensing transparency, with all commercial agreements made available to the public.
An independent oversight board, comprising finance and business experts, ethicists, academics, tech experts and representatives from civil society, would reinforce strong governance.
Arguably, in the global AI race, data is as valuable as semiconductors or energy. The UK must consider data sovereignty a matter of national security.
A sovereign data fund with controlled licensing could strengthen data diplomacy on UK terms. This approach would provide a stronger negotiating position in data-sharing partnerships, research alliances and AI ethics agreements.
The UK's future in AI depends on innovation and economic productivity, as well as principled stewardship of public resources. Citizen data sourced from public services must be perceived as both a financial and strategic asset.
The sovereign fund model ensures that benefits of data-driven AI innovation extend beyond immediate shareholder returns. It recognises the importance of sharing profits derived from citizen data, enriching the UK as a whole.
A sovereign data fund could transform the NDL from a mere repository into a central pillar of UK digital resilience. The government's response to the AI action plan makes a promising start. But without a bold vision, it risks giving away one of the UK's most valuable resources in the AI era - public data generated by its citizens.
S Asieh Hosseini Tabaghdehi receives funding from UKRI (ESRC) to investigate the ethical implication of digital footprint data in SMEs value creation.
Ashley Braganza does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.