Why a successful UK industrial strategy depends on the convergence of the creative and digital sectors

The UK faces a challenge: productivity growth has stagnated for nearly two decades, with real wages growing just 0.5% since 2007 despite the country ranking fifth globally for innovation. While the UK consistently ranks in the bottom 10% of OECD countries for investment intensity, it paradoxically leads Europe in attracting foreign investment. This disconnect reveals both the scale of the opportunity and the urgency of the moment.

Shape When the UK Government launched its Invest 2035 strategy in late 2024, it identified eight critical sectors to drive long-term, sustainable economic growth. Among them were the creative industries, and the digital and technology sector. Both represent significant value - with tech contributing over £150 billion annually to the UK economy, and the creative industries adding another £100 billion.

Beyond the strength of these sectors individually, their growing interdependence is fast becoming central to the UK’s future industrial success. The real opportunity lies in how these two sectors interact - an intersection where innovation thrives, productivity rises, and new markets emerge.

The creative-tech convergence: more than overlap

The close interactions between these two sectors are visible in practice. According to the House of Lords Communications and Digital Committee, over 40% of creative sector workers are now in tech-related roles. Similarly, a 2023 survey by It's Nice That found that 83% of creatives were using machine learning tools in their work, with nearly half having used them within the previous week. This represents a genuine collaboration and structural convergence – a partnership that reflects how creative work is evolving in the digital age.

Recent research by the Alan Turing Institute and BridgeAI further illuminates this evolving relationship. Their AI Use Case Framework offers a tool to classify and analyse AI applications in a business context, while their Creative Industries briefing paper provides a short, sector-specific analysis of AI adoption challenges and real-world use cases in the creative industries – illustrating how the framework can be applied in practice. This work is also complemented by Digital Catapult’s Innovate UK BridgeAI programme, which provides the UK’s creative industries with funding and upskilling opportunities to harness Artificial Intelligence effectively.

Technologies like AI, extended reality (XR), and generative design are not only supporting the creative process; they are expanding its possibilities – continuing a long tradition of tools that open up new forms of artistic expression. From designing immersive virtual exhibitions to writing multilingual music releases, creators are using these tools to push creative boundaries and reach new audiences. Beyond commercial applications, this convergence is also helping preserve cultural heritage, for example by restoring lost manuscripts and reconstructing ancient languages.

This convergence can address challenges identified in Invest 2035, including the need for higher investment intensity, better technology adoption and diffusion, and increased market dynamism.

Why this matters for the Industrial Strategy

Industrial strategy is no longer just about hard infrastructure or manufacturing. It’s about dynamic, interconnected ecosystems of talent, tools, and innovation. The creative and technology sectors are both inherently agile and exportable - able to deliver global impact from every corner of the UK.

For instance, creative-tech collaborations can catalyse regional regeneration, from immersive design studios in Brighton to gaming hubs in Guildford. These partnerships also help modernise adjacent sectors like healthcare, education, and retail - expanding the economic ripple effect exactly as Invest 2035 envisages. But to make the most of it, access to the right skills, infrastructure, and policy environment is key. That includes:

Confidence and clarity in regulation to support adoption of emerging tools
Accessible digital infrastructure nationwide
Cross-sector public-private partnerships to support experimentation and scale
Targeted skills development to keep talent pipelines diverse and future-ready

Case study 1: Hello Games and Procedural Generation in No Man’s Sky

Guildford-based Hello Games provides a clear example of what creative-tech integration can achieve. Their flagship title, No Man’s Sky, uses procedural generation - a form of AI - to build an expansive universe with over 18 quintillion unique planets. Every rock formation, alien creature, and atmospheric condition is algorithmically created, allowing for nearly infinite gameplay possibilities.

This not only revolutionised game development by lowering costs and increasing scope, but also positioned a UK company as a global innovator in one of the world’s most competitive entertainment markets. Procedural generation isn’t just a trick - it’s a toolkit for economic and creative scale.

Case study 2: The National Youth Theatre’s AI Accelerator

At the other end of the spectrum, the National Youth Theatre (NYT) is shaping the next generation of creative-tech talent through digital accelerator programmes to equip young performers with AI tools and skills. From real-time script generation to dynamic character prompts, participants are exploring new possibilities for AI-assisted performance.

As one performer put it: “We’re using AI as a collaborator. It challenges us. It pushes us to be more inventive.”

This kind of initiative ensures the UK’s creative workforce remains at the forefront of global innovation - with inclusivity and experimentation at its heart.

AI and the everyday creator

It’s not just large studios or elite institutions that are embracing this shift. Across the UK, AI is transforming workflows for illustrators, filmmakers, musicians, marketers, and writers:

VCCP London is helping brands use AI to maintain voice and scale across campaigns
The BBC is experimenting with voice assistants built on Azure AI to create new audience experiences
The Connected Set in Brighton is using AI to turn scripts into animated storyboards with Storyboarder.ai
Sky Sports is exploring AI-powered voice summaries for live broadcasts

Meanwhile, platforms like Runway and Replica Studios are making AI-driven video and voice production accessible to independent creators - helping them compete on a global stage.

A call to action

If the UK is to truly deliver on the promise of Invest 2035, it is key that we recognise the interconnectedness of the two sectors. This means supporting:

Collaborative ecosystems where creators and technologists co-develop new tools
Clear, innovation-friendly regulation to reduce uncertainty and boost adoption across sectors
Inclusive access to infrastructure and training so no region or community is left behind

With the right support, the two sectors can help reshape the economy.

To learn more about how the two sectors are evolving to expand what’s possible in creative expression, join techUK and Arts Council England for our upcoming AI, Creative Expression and Skills event, taking place at techUK on 23 July.

References:

Digital Catapult (2025). BridgeAI Programme overview. https://www.digicatapult.org.uk/programmes/programme/bridgeai/
House of Lords Communications and Digital Committee (2025).
It’s Nice That – State of Creativity Survey (2023).
Leone de Castris, A., Laher, S., & Ostmann, F. (2025). Business applications of Artificial Intelligence – A framework to categorise AI use cases. BridgeAI. https://doi.org/10.5281/zenodo.14727116
Leone de Castris, A., Laher, S., & Ostmann, F. (2025). Business applications of Artificial Intelligence: Creative industries briefing paper. BridgeAI. https://doi.org/10.5281/zenodo.14851178
Microsoft CSR – Journalism Hub.
Microsoft Customer Stories – National Youth Theatre, BBC, University of Manchester.
techUK insights on AI and innovation in the creative economy.

For more on how technology and creativity are converging to drive UK growth, follow techUK’s updates at techUK.org

Authors

Rory Daniels

Senior Programme Manager, Emerging Technologies, techUK

Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.

During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.

Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.

Today, Rory leads techUK's emerging technologies activity across everything from immersive, web3, AI and robotics to space, gaming & metaverse.

This involves co-running techUK's flagship Innovation campaign, managing four series (including the 'Meet the Innovators' interview series), and launching 4-6-month 'sprint campaigns' on transformative technologies and sectors.