## Unlocking AI-Led Productivity Growth in the United Kingdom

_Selected Issues Papers, July 31, 2026_

## Source details

**Canonical URL:** [Unlocking AI-Led Productivity Growth in the United Kingdom](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/07/30/unlocking-ai-led-productivity-growth-in-the-united-kingdom-578251)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2026/07/30/unlocking-ai-led-productivity-growth-in-the-united-kingdom-578251/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2026/07/30/unlocking-ai-led-productivity-growth-in-the-united-kingdom-578251/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2026/07/30/unlocking-ai-led-productivity-growth-in-the-united-kingdom-578251/bundle-manifest.json)

## Bibliographic details
- Authors: Matthieu Bellon, Pragyan Deb, Mahika Gandhi, Emma J Rockall
- Published: July 31, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229055574.018

---

### Key findings and analysis
- AI offers a significant opportunity to lift the UK's lackluster productivity growth.
- The UK is well positioned given its concentration in high-skill, knowledge-intensive services where AI shows the greatest potential.
- Realizing AI gains hinges on five enabling conditions: infrastructure, financing, regulation, skills, and trade openness.
- Bottlenecks are identified in each of the five enabling conditions.
- Economy-wide reforms are a prerequisite but should be complemented by targeted interventions in regulation and skills.
- A model of endogenous technology adoption calibrated to the UK finds that halving regulatory constraints and expanding AI-related skills supply could jointly increase output gains by two thirds.
- Investment in sovereign AI capabilities carries substantial insurance value against supply-chain disruptions.

### Policy recommendations and implications
- Prioritize economy-wide reforms to address structural bottlenecks across infrastructure, financing, regulation, skills, and trade openness.
- Implement targeted regulatory reforms to reduce constraints on AI adoption (example impact: halving regulatory constraints).
- Expand AI-related skills supply to complement regulatory reforms and amplify output gains.
- Consider investment in sovereign AI capabilities to provide insurance value against supply-chain disruptions.

---

## Content in this bundle

- **Sipea2026072**
  - [Sipea2026072 (Markdown version)](/-/media/files/publications/selected-issues-papers/2026/english/sipea2026072.pdf.md){rel="alternate" type="text/markdown"}
  - [Sipea2026072 (PDF)](/-/media/files/publications/selected-issues-papers/2026/english/sipea2026072.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/07/30/unlocking-ai-led-productivity-growth-in-the-united-kingdom-578251_