British Prime Minister Andy Burnham is placing artificial intelligence at the core of his strategy to strengthen ties with the European Union, amid growing concerns over the United Kingdom’s reliance on American technology. Burnham is preparing to engage with EU officials at a summit next month to pursue closer alignment with Brussels’ emerging AI regulations.
UK ministers are actively lobbying for British businesses to gain “trusted access” to an EU-backed initiative aimed at prioritizing investment in European sovereign technologies. This scheme seeks to reduce the continent’s dependence on US and Chinese dominance in AI and related sectors. Without appropriate access, UK companies risk exclusion from AI contracts valued at tens of billions of euros.
Burnham has voiced apprehension about parts of the EU’s approach, particularly the Cloud and AI Development Act, which mandates that governments within the single market prioritize European firms when purchasing AI technologies such as data centers and chatbot subscriptions. He has expressed concern that these policies, designed to boost European manufacturing and technology, could undermine British industry.
The EU’s drive to support domestic AI providers comes amid fears that member states are becoming too reliant on US-based companies. Arthur Mensch, CEO of Mistral—the largest AI company in Europe—recently cautioned that relying solely on the US and China to develop cutting-edge technology would be a “fundamental mistake.” The issue of overdependence on American infrastructure gained renewed attention after Ukraine’s access to US Starlink satellite systems was limited.
Not all UK political voices back Burnham’s approach. Julia Lopez, the shadow business and trade secretary, criticized the effort, citing the EU’s propensity for excessive regulation as a hindrance to innovation. She noted that the largest global tech companies of the 21st century have not emerged from Europe, implying that tight regulatory environments may be a contributing factor.
Industry groups also warn that the EU’s new rules, which favor companies identified as European, could marginalize British firms. TechUK, a key trade association, argued that excluding UK businesses from a European market worth approximately €47 billion (£40 billion) would diminish the collective competitiveness and resilience of the region’s digital infrastructure, hampering research and innovation.
Discussions about establishing the UK’s status under the EU’s “Made in Europe” rules are underway, led by Business Secretary Jonathan Reynolds. A recent Department of Business, Innovation, Science and Trade roundtable addressed UK companies’ concerns over potential market exclusion. Transparency records indicate that UK officials have also engaged with Members of the European Parliament, including Dóra Dávid, to negotiate the terms.
Alexandru Voicu, representing British AI firm Synthesia, criticized the EU draft legislation for failing to distinguish between countries aligned with European regulation and those with conflicting policies. He described the framework as being developed “by EU lawyers for EU lawyers,” lacking practical differentiation that would benefit countries like the UK.
On the European side, some companies have voiced reservations that the legislation could penalize firms that grow through foreign investment. If a bilateral agreement is reached before the rules take effect—likely in early 2028—it would signal a closer UK-EU relationship under Burnham’s leadership, who has emphasized his commitment to stronger ties with the single market.
Potential negotiations may also impact trade policies, with pressure mounting on the UK government to consider raising tariffs on Chinese electric vehicles. France and Germany have already indicated that such measures might be necessary for continued UK access to the EU car market.
A government spokesperson declined to comment on ongoing discussions.