How Association Leaders Can Align with the UK Government's Modern Industrial Strategy
- Niroo Rad
- Jul 24
- 4 min read
Key Insights from Our Executive Briefing
On July 23, 2025, an executive briefing attended by CEOs and SLT executives discussed the UK Government's Modern Industrial Strategy and the Professional and Business Services (PBS) Sector Strategy. The focus was on the pivotal role of artificial intelligence (AI) in the government's £500 million investment strategy, presenting both opportunities and challenges for professional organisations.
AI as an Economic Driver
AI is a key economic growth driver in nine major sectors, with the PBS sector contributing 12% to the UK's gross value added and employing 4.6 million people. The government aims to double the PBS's value to the economy by 2035, but slow AI adoption across sectors is hindering growth.
What the Government Expects from Professional Bodies
Our briefing highlighted four critical expectations:
1. Sector Engagement
Professional bodies must support the PBS strategy by enabling AI adoption among members and providing governance tools whilst advocating for ethical standards.
2. Policy Influence
Government wants professional bodies contributing to consultations on AI regulation and skills development, actively shaping innovation frameworks rather than responding reactively.
3. Member Enablement
Associations must help members understand, adopt, and benefit from AI through sector-specific guidance, training, and certification services.
4. Internal Maturity
Perhaps most critically, professional bodies must demonstrate strategic use of AI internally to act as credible models and policy partners.
The Performance Gap Challenge
Our discussion highlighted a concerning reality: while most professional bodies engage in some expected activities, they do so inconsistently and lack coherence. The challenge lies in aligning these efforts with a clearly defined external plan and ensuring active participation rather than passive observation.
Governance Barriers
Many governance structures within professional bodies unconsciously favour established players. Boards often consist of individuals from traditional organisations who may be slower to adopt innovations. This creates the risk of becoming "the voice of the wait-and-see," while more progressive organisations seise government funding and collaboration opportunities.
Market Transformation Reality
The professional body sector is increasingly becoming capital-intensive, moving away from traditional low-capital consulting models. Large consulting firms are leveraging AI tools to gain unprecedented advantages in quality and speed, fundamentally altering the competitive dynamics in professional services.
Eight Priority Actions for Association Leaders
Based on our briefing discussions, we've identified eight immediate actions:
Watch: Support, champion and disseminate research
Act as observatory: Gains in other sectors may transfer to yours
Nurture: Foster culture of knowledge sharing
Signpost: Funding opportunities for members
Align: Create space for innovators rather than defaulting to legacy players
Board alignment: Present Industrial Strategy implications to your board
Speak: Join your Sector Skills Council
Showcase: Share sector successes with Department for Business and Trade
Proposal for the AI-Powered Industrial Strategy Special Interest Group (SIG)
To address the challenges we face collaboratively, we propose the formation of an AI-Powered Industrial Strategy Special Interest Group (SIG). This group will consist of 18 senior leaders, with two representatives from each of the nine Industrial Strategy sectors, who will engage in monthly strategic discussions lasting two hours.
The objectives of this cross-sector forum include:
Creating synergies and sharing best practices
Establishing a centre of excellence for reliable information
Coordinating sector responses to government priorities
Driving strategic pathways for AI adoption
The Moment for Leadership
As government investment and policy support AI adoption, associations face a choice: actively engage to benefit from funding and collaboration, or risk being left behind. Organisations that position themselves at the centre of academia-industry collaborations will fare better than those that take a "wait and see" approach.
Next Steps for Association Leaders
Board Presentation: Every board needs a presentation on Industrial Strategy alignment
Governance Review: Assess whether structures favour legacy players over innovators
Strategic Alignment: Evaluate how your strategy aligns with government expectations
SIG Participation: Consider involvement in our proposed cross-sector forum
Internal Capability: Assess AI maturity to become credible models for members
Building AI Leadership Capability
For association leaders seeking to develop strategic AI expertise, our AI-Certified Association Executive (AI-CAE) programme provides the framework needed to lead with confidence. As one participant noted, it's "more than what you need to know, it's what you need to think about."
Download the Full Resources
Access the complete briefing materials:
📄 UK Industrial Strategy– Professional and Business Services (PBS) Sector Plan
Join the Leaders Conversation
This is a unique opportunity for associations to position themselves not only as leaders in their professions but also as contributors to national innovation, skills development, and economic resilience.
If you're interested joining the AI-Powered Industrial Strategy Special Interest Group (SIG), please contact our General Manager, Niroo Rad, at nrad@aiinstitute.cloud to explore how you can participate.
Are you ready to enhance your AI leadership capabilities? Learn more about our AI-CAE programme.
"We are better together" — promoting coordinated AI adoption across professional bodies and membership organisations.
About AI Institute.cloud: We are a professional body dedicated to fostering successful and responsible AI adoption in associations and membership organisations through our national "AI-Enabled Association" initiative.
For more insights on AI strategies for professional bodies, join our growing community of association leaders adopting the AI transformation.
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