The minister has stressed that Britain's economic prosperity and national security could be at risk unless UK tech companies are provided with greater backing and has also proposed a new AI hardware plan to boost the nation's future capability in chips and semiconductor technologies.

Kendall said: "The countries which harness AI will not only lead the race to cure diseases, discover new materials and create trillion-dollar companies, but also build far more powerful militaries.

"Put simply, AI is now the engine of economic power and hard power."

The Labour MP warned that 70 per cent of global AI technology is controlled by just five companies and highlighted the need for the UK to focus on AI sovereignty to reduce dependency on overseas territories for the tech.

Kendall highlighted the launch of a Sovereign AI scheme earlier this month in terms of backing for British AI, with £500 million of investment promised to ramp up support for firms across the country.

She said: "This government believes AI sovereignty is not about isolationism or attempting to pull up the drawbridge and go it alone. We will continue to use the best technology and welcome inward investment because that’s what our public services and economy demand.

"For Britain, AI sovereignty is about reducing over-dependencies and increasing resilience in key national strategic priorities, as the Prime Minister has rightly argued."

Kendall also pointed out Britain's existing international partnerships, such as the science and technology partnership with Germany that includes a £6 million joint quantum project.

The Technology Secretary's speech has been welcomed by those in the industry, with EMEA North for Informatica boss Greg Hanson calling for "discipline and control" in Britain's development of AI infrastructure.

He said: "The dual emphasis on investing in UK AI hardware and working closely with international partners on AI standards will help the UK strengthen its AI foundations."