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A "world's first" national advisory body to research artificial intelligence (AI) technology is to be created in the UK.

In his Budget speech, Chancellor Philip Hammond announced £500 million of investment would be used to increase the development of AI technology, as well as 5G and full fibre broadband connectivity.

The new Centre for Data Ethics and Innovation would be created to work with government, regulators and industry to "lay the foundations for AI adoption" in a world first, the Government said.

£75 million would be used to fund "take forward key recommendations" of the centre, as well PhD researchers and to create fellowships to conduct research into the technology.

"The world is on the brink of a technological revolution," Mr Hammond said.

(Image: Getty)

"One that will change the way we work and live and transform our living standards for generations to come.

"And we face a choice: Either we embrace the future, seize the opportunities which lie within our grasp and build on Britain's great global success story, or reject change and turn inwards to the failed and irrelevant dogmas of the past.

"Others may choose to reject the future. We choose to embrace it.

"A new tech business is founded in Britain every hour. And I want that to be every half-hour.

"So today we invest over £500 million in a range of initiatives from Artificial Intelligence, to 5G and full fibre broadband."

(Image: Philip Coburn/Daily Mirror)

Artificial intelligence has become increasingly prominent in mainstream technology in the last year, with many of the most popular gadgets of today, including the Amazon Echo and Google Home smart speakers, powered by the technology.

Doron Youngerwood of software firm Amdocs welcomed the announcements.

"With the digital economy so crucial to growth it's no surprise the Chancellor has chosen to invest in cutting edge technologies, such as AI, to maintain the UK's position as a leader in the sector," he said.

"This is a smart move because AI is becoming more prevalent in everyday life and influencing everything from consumer spending to business decision making, but the £500 million technology investment needs to be spent wisely if it's going to have any real impact on the UK economy."

But Richard Parris, chief executive of digital firm Intercede, warned that a lack of investment in cybersecurity was a crucial issue that still needed addressing.

(Image: Digital Vision Vectors)

"The Chancellor's budget announcement to allocate significant investment into digital skills is refreshing to see. But where was the mention of cybersecurity? It's all well talking about initiatives such AI, electric cars, broadband and 5G," he said.

"But how do we ensure we have the resources and expertise to secure these technological developments?

"Hammond described his latest budget as a 'balanced approach' but frankly I disagree."

In his speech, the Chancellor also announced extra investment in connectivity, focusing on 5G mobile, the next generation of mobile connectivity, and further funding for the rollout of full fibre broadband.

This would include £385 million of investment to improve mobile and internet connectivity for train passengers.