Summary 5

1. Introduction: the AI tipping point 7

As AI backlash goes mainstream, governments risk being boxed in 7

The state of AI in 2026 offers little reassurance 7

2. The UK and EU’s approach to AI is missing direction 9

Europe’s AI agenda is imbalanced 9

Acceleration alone is not a strategy 10

3. How to implement AI directionism in practice 11

1. Steer AI towards the highest-impact uses 11

2. Equip priority sectors to adopt AI well 15

3. Rebalance power in the AI economy 15

4. Distribute the gains from advanced AI 17

4. Conclusion 19

References 20