Up to 1,000 new jobs are set to be created in the Liverpool City Region.
Prime minister Sir Keir Starmer confirmed that Artificial Intelligence firm Kyndryl is behind the move, leading to the increase over the next three years.
The American infrastructure service provider will launch a new hub in the region as part of the government’s AI Opportunities Action Plan.
Under the scheme, three major tech companies have committed to investing £14bn in the UK which will create 13,250 combined jobs across the country.
“Artificial Intelligence will drive incredible change in our country,” said Starmer.
“From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.
“But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.
“Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services.”