RE: Can only be good for the Lloyds sp17 Sep 2025 12:19
And the rest of the AI replyâŚ.
Where profits will go / who gains
Microsoft is a multinational headquartered in the US. A lot of revenue generated via usage, cloud services, software, IP, etc., will flow back to the companyâs global / US base.
UK will benefit via taxes (corporation tax, possibly local tax or investment incentives), jobs, infrastructure, skill development. But the profit distribution (i.e. how much remains in UK vs flows abroad) will depend on things like tax policy, ownership of assets, licensing/royalties, and where the digital services are sold.
There is always a risk that much of the profit (especially from downstream usage or global deployment) ends up accruing to Microsoft in the US, unless there are specific agreements, taxation, or regulation ensuring value capture locally.
Skill / labour shortages
Even though Microsoft plans to train many people, there is existing evidence of digital skills shortages, especially in AIâadjacent fields. That means some roles may have to be filled by imported expertise, or people trained abroad, or firms hiring internationally.
The training of âone million peopleâ is promising, but âtrainedâ doesnât always equal âemployed in well-paid AI jobs.â Some of that training may be introductory or upskilling, not always full AI engineering. And there is a lag between training and meaningful employment.
Overall verdict: Is the statement âfairâ?
Yes â overall, it is fair to say Microsoft is investing billions in the UK for AI. But it is also fair to say that the sceptical concerns are valid:
In the short term, for people needing work now, the benefits may be limited, unless they already have or can quickly acquire the relevant skills.
The number of mass employment opportunities is unlikely to match the numbers of people currently unemployed or seeking work across many sectors (unless there are big complementary policies).
On profit retention, much will likely accrue outside the UK, unless strong policy measures are in place.
What would need to happen for more fair distribution/sooner benefit
To make the statement more optimistic (i.e. to ensure that âwe get a fair share of the benefit, sooner, and broadlyâ):
Strong training and reskilling programmes targeted at people outside existing tech sectors, especially in regions with fewer tech firms.
Tax and regulatory policies that ensure profits generated from local infrastructure / services are taxed appropriately in the UK. Possibly local ownership or joint ventures.
Supporting local supply chains (equipment suppliers, maintenance, construction etc.) so more of the investment circulates through UK businesses.
Ensuring that data centres and infrastructure are spread geographically, so that the investment brings benefit to multiple regions, not only âhubs.â
Encouraging spillover / innovation: startups, smaller firms using the infrastructure; ensuring access to compute c