Columnist

North East can't be an afterthought in AI future

While artificial intelligence investment booms in the UK, and the North East hosts a month of tech celebrations, the people most affected by the next wave remain absent from the conversations shaping it, writes Laura Richards.

With TechNExt following UK Startup Week this month, the region is buzzing with events, socials and conversations about what it takes to build a tech business in the North East. 

And while there is a lot to celebrate, there is also cause for concern about our region’s role in artificial intelligence development. 

Tech Nation’s latest artificial intelligence report shared some striking headlines: the UK is Europe’s leading artificial intelligence hub, home to more than 2300 VC-backed companies, valued at a combined £170 billion. 

Artificial intelligence start-ups in the UK raised more than £700 million in the first quarter alone. 

Look closer, however, and the regional imbalance is stark. 

The North East ranks at the bottom of the table for number of artificial intelligence start-ups. 

We have just 26 artificial intelligence companies, no unicorns and no ‘soonicorns’. 

And while we have some promising homegrown companies – like WordNerds and PolyBox – we need an artificial intelligence ecosystem that competes nationally and internationally. 

More concerning still, most artificial intelligence value doesn't lie in start-ups using the technology – it's concentrated in the handful of companies building the foundational models that power everything else. 

None are based in the North East.

According to Stanford's AI Index, 90 per cent of the most notable artificial intelligence models in 2024 came from industry, rather than academia. 

Nearly all originated in the US or China, with Europe producing just three.

OpenAI, Anthropic and Meta are setting the pace, consolidating power and attracting billions in funding. 

This worries me. 

Why? 

Because this concentration of power sits with a group of elite, very privileged individuals, whose experiences bear little resemblance to growing up in the North East. 

This matters because while we’re not developing foundational models or setting artificial intelligence adoption terms, our communities will feel the consequences – especially as Government ramps up the use of artificial intelligence in public services.

Sutton Trust data shows young people in Newcastle Central and Newcastle West have the worst life chances in England. 

Just 15 per cent of local pupils on free school meals pass GCSEs in English and maths.

By 28, their average earnings are £7000 lower than peers in similarly deprived areas.

These are the very young people, who will interact most with artificial intelligence-powered public services – from education platforms to benefits assessments.

Yet their experiences, contexts and realities aren't reflected in the data training these systems.

We’re building a future where algorithms designed by Silicon Valley elites will increasingly govern the lives of young people in Byker, Blakelaw and Westerhope. 

This is on top of the well-established gender and racial biases affecting artificial intelligence. 

Without urgent investment in artificial intelligence skills and ecosystem development, young people face permanent exclusion from tomorrow's economy, with the geographic concentration of artificial intelligence jobs in London and Cambridge threatening to turn the North East into an economic periphery. 

But if we get this right, our whole region benefits.

Part of the challenge is political. 

The North East has long suffered from fragmented leadership. 

While regions like Greater Manchester and the West Midlands have carved out clear identities and strategic influence, we’ve often been stuck negotiating across local boundaries. 

This has cost us in the past, and it risks us missing out on opportunities and funding that come with initiatives like AI Growth Zones.

We can change that – but not by playing catch-up. 

We need a strategy specific to this region, one that backs founders here not just to use artificial intelligence but to shape it. 

One that reflects the communities that will live with its consequences. 

This isn’t about tech optimism or doom. It’s about voice, agency and power.

If the North East wants a future in artificial intelligence, we need all three.

Laura Richards is host of The Idea Junkies Podcast

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