Britain’s economy’s reflecting the clearest signs yet that it’s benefitting from the global artificial intelligence (AI) boom. Data on Thursday, 13 August ’26, reflected rapid growth in related industries besides a surge in computer hardware investment.
The Office of National Statistics (ONS) announced that Britain’s economy grew by 0.4% in the 2nd quarter of ’26. The information, besides the communication sector, contributed to almost half of that expansion. That’s more than any other sector.
Is the AI boom driving Britain’s economy?
Information and communications were the standout performers for Britain’s economy in the second quarter, according to data from the ONS.
Within the sector, the ONS said the output of computer programming, consultancy & related activities, which includes AI enterprises, surged by 3.7% in the quarter. That’s on top of a 3.8% surge during the previous quarter.
Since becoming prime minister only in July ’26, Andy Burnham has made AI a cabinet-level priority.
His team has signaled a shift away from the previous government’s U.S.-centric approach towards a greater emphasis on British ownership and tech sovereignty, besides protecting workers from disruption.
U.S. data has also, meanwhile, pointed to AI’s growing impact on the world’s largest economy.
ONS investment data on Thursday, 13 August ’26, offered more evidence of an AI impact.
Spending on plant & machinery across the economy has grown strongly during this year. It rose to £22.1 billion (USD 29.8) during the second quarter. This is just shy of the one-off record high reached four years ago in 2022. That increase was caused by the timing of tax breaks.
Investment in plant & machinery points to AI hardware splurge
The ONS says that spending on computer hardware is a big factor behind a surge in plant as well as machinery investment across the economy.
An ONS spokesperson said that the most recent strong reading reflected ICT equipment. This increase was particularly in computer hardware, besides government expenditure on weapons systems.
