Welcome to the Atticus Partners technology newsletter: the Bytesize Briefing. Each month we cover politics and policy from across the UK and European technology sectors. In this edition, we cover the ongoing impact resulting from Trump’s tariffs, Big Tech being hit by fines via the DMA and warnings that the UK’s AI adoption is lagging behind.
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Google warns that UK AI adoption is lagging behind
Google has warned the existing gap in the UK’s adoption of artificial intelligence could result in the economy missing out on an additional £200bn boost. President of Google’s UK and European arm, Debbie Weinstein, issued a “call to arms” to ensure that the UK is providing the much-needed AI tools that workers need.
Weinstein’s comments follow the publication of a comprehensive survey by Public First, which found 66% of British workers have never used generative AI in their jobs. The research also found a concerning “digital divide” in AI uptake, emphasising the lower level of integration and use of AI among women over 55 and individuals from lower socio-economic backgrounds.
A key reason for this slow uptake appears to stem from a lack of guidance and training. The survey also found that only 22% of workers have been encouraged to use AI tools by their employers, whilst 70% of those who have adopted AI did so independently. Such figures highlight the absence of coordinated workplace strategies or formalised guidance on AI usage. This issue appears exacerbated by the lack of accessible and accredited short training courses.
Technology Secretary Peter Kyle, has responded that the government intends to support workers in developing the necessary skills for jobs in and using AI through its AI Opportunities Action Plan. However, what’s clear from the data is that this is yet to move the dial towards realising the full range of benefits associated with AI adoption.
The Government embraces quantum technology
On World Quantum Day, the Government announced a major £121 million investment package to advance quantum technology and expand its uses nationwide. Quantum technology, which harnesses the unique properties of subatomic particles, has the potential to solve complex problems beyond the reach of traditional computers.
This new funding aims to accelerate the deployment of quantum solutions in areas like fraud detection, crime prevention, and energy efficiency while fostering the next generation of quantum researchers. Alongside the announcement, the Government reiterated its ambition to make the UK a global leader in quantum innovation, leveraging its position as home to the second-largest quantum sector after the US. Key components of the funding include £46.1 million to help businesses integrate quantum technologies in computing, sensing, and navigation; £21 million to support the National Quantum Computing Centre (NQCC) and its partnerships, such as HSBC’s anti-money laundering initiatives; and £23.6 million for research hubs and skills development programmes.
For businesses, the funding opens up avenues to develop next-generation quantum-powered tools. For the public, benefits could include safer financial transactions, more efficient healthcare systems, and smarter energy management. Strategically, it strengthens a vital high-growth sector poised to shape the technological landscape of the coming decade.
As quantum technology moves from experimental labs to practical deployment, the UK is positioning itself not just to keep pace but to lead the global advance in this transformative field. The Government's aim is to let the world know that it is capable of contributing to the future of technology.
Ireland navigates Trump's tariffs
Ireland continued to grapple with the fallout from President Trump’s trade war and the imposition of tariffs.
Ireland – the home of several American Big Tech firms – is uniquely exposed to American tariffs and is highly dependent on the United States for goods and services. In particular, US-owned multinationals employ a significant number of Irish workers across the pharmaceutical and technology sectors.
Despite a positive economic growth story of late and a strong budget surplus, Ireland is in the eye of the storm on this issue. It is hard to overstate the seriousness of these developments, with Taoiseach Micheál Martin recently describing it as ‘without question the most serious issue to face the Irish economy in a long time”.
Big tech and tax policy has become a key battleground influencing the EU’s response to these tariffs. President Trump and Elon Musk have been highly critical of EU tech regulations, including landmark legislation such as the Digital Services Act and the Digital Markets Act, and significant antitrust fines.
Countries including Germany and France have called for the EU to target US tech firms, but Ireland has staunchly opposed these suggestions. Earlier on in April, Irish Trade Minister Simon Harris made clear that targeting these companies is not the EU’s agreed position and highlighted the damage such a move could cause to Ireland.
Irish Finance Minister Paschal Donohoe also recently said the EU will “leave no stone unturned” to reduce trade-related uncertainty, reflecting Ireland’s clear desire to find a quick diplomatic solution on this front
Whilst the EU continues to develop a unified response to an ever-evolving issue, it will be fascinating to see to what extent Ireland can influence the bloc’s position, an outcome which will have significant economic and political ramifications in the years ahead.
European Commission shows strength of the DMA
The full strength of the European Union’s landmark competition legislation, the Digital Markets Act, was seen when the European Commission issued Apple and Meta significant fines for breaching the rules. Following investigations started in 2024, Apple was dealt a €500 million fine for breaching the DMA’s rules for app stores, whilst Meta was given a penalty of €200 million for its pay or consent advertising model.
Meta and Apple have been quick to respond to the fines with Joel Kaplan, Chief Global Affairs Officer at Meta, stating that the European Commission is attempting to “handicap” American businesses – in contrast to the exemptions it is making for Chinese and European companies. Similarly, Apple said it is being “unfairly” targeted, adding that the decision will force the company to give away its technology for free.
Apple and Meta are now required to comply with the Commission’s decisions within 60 days of the ruling or face additional penalties – much to the chagrin of the Big Tech giants. Although these fines are considered relatively small in comparison to other penalties previously dealt by the EU, they still risk angering US President Trump who recently accused the bloc of “taking advantage” of the US. As such, these decisions will likely have a lasting impact both amongst Big Tech players and on the global stage.
European Commission bans lobbyists with links to Huawei
The European Commission has announced a ban on meetings with lobby groups and trade associations representing Huawei, following a corruption investigation implicating the Chinese tech giant in alleged bribery activities within the European Parliament.
This is not the first intervention with this decision extending a previous prohibition on direct contact with Huawei officials, now encompassing intermediaries acting on the company's behalf. The Commission clarified that while umbrella organisations with Huawei as a member may still access EU institutions, any discussions pertaining to Huawei's interests will be scrutinised and potentially halted.
The move comes after Belgian prosecutors charged eight individuals, including a senior Huawei executive, with offences such as active corruption and money laundering. Investigations revealed that Huawei allegedly provided incentives, including cash and gifts, to European Parliament members to influence policy decisions favourably.
Huawei has stated its commitment to a zero-tolerance policy on corruption and is cooperating with authorities. However, this scandal has intensified scrutiny over corporate lobbying practices in Brussels and has reignited calls for stronger transparency and ethics reforms within EU institutions.
This development marks a significant shift in the EU's approach to corporate lobbying, particularly concerning entities with alleged ties to foreign state interests.
Look ahead...
In May several significant pieces of tech legislation will be progressing through Parliament, including the Data Use and Access (DUA) Bill which is currently at report stage. Although the DUA Bill is anticipated to receive Royal Assent this spring and become law by the summer, it has been considerably slowed down by disagreements on additional provisions.
It will also be worth keeping an eye out for the government’s promised Cyber Security and Resilience Bill later this year, following the Department for Science, Innovation and Technology recently publishing a policy statement outlining what the Bill will include, such as establishing the principles of the National Cyber Security Centre and bringing more entities into scope.