What Does UK Prime Minister Andy Burnham Mean For AI?

The newly-appointed UK Prime Minister, Andy Burnham, will have far-reaching reaching impacts on the UK's tech and AI sector. 

So far, he has dissolved the Department for Science, Innovation and Technology (DSIT), redistributing its functions across other government departments in a move that could have significant implications for the country's AI sector and policy landscape.

Jonathan Reynolds, the former business secretary, will now lead the newly formed Department for Business, Innovation, Science and Trade, absorbing the majority of DSIT's portfolio.

Meanwhile, remaining responsibilities have transferred to what will be renamed the Department for Digital, Culture, Media and Sport under Lisa Nandy's leadership.

The restructuring has sparked immediate concern among AI researchers, practitioners and industry leaders who warn the changes could disrupt critical AI development initiatives and safety frameworks at a pivotal moment for the technology.

Despite dismantling DSIT, Burnham has appointed Kanishka Narayan as the UK's first dedicated AI minister.

AI sector concerns over fragmentation

The dissolution has met considerable resistance from technology entrepreneurs and sector representatives.

Julian Harris, CEO of techUK, and Dom Hallas, Executive Director at Startup Coalition, jointly wrote to the PM describing the proposal as "the wrong change at the wrong time".

"DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department – a single front door that gives the tech sector clarity, pace and a government partner that understands technology and champions the sector in the Cabinet," they wrote.

Their letter specifically highlighted concerns about fragmenting key AI initiatives, including the AI Safety Institute, the Sovereign AI fund, Government Digital Service and UK Research and Innovation.

The signatories argued that distributing these functions could slow momentum when the AI sector requires rapid policy development and coordinated oversight.

DSIT was established in 2023 under former Prime Minister Rishi Sunak.

During its brief existence, the department supported quantum computing research programmes and designated zones for AI infrastructure, including a significant data centre campus project from OpenAI and Nscale that was subsequently paused by OpenAI in March 2025.

Impact on AI development

The restructuring comes as the UK's technology sector, valued at £1.2tn ($1.6tn) and growing at 10% annually, seeks policy stability to maintain competitiveness in AI development.

Industry figures warn the changes could send problematic signals about the government's commitment to AI leadership.

"You don't show you take AI seriously by appointing a minister while scrapping the department that understood it," says James Cobb, CEO and Founder of UK location intelligence company Crowd Connected.

"A minister for AI is welcome, but a minister without a department is simply a spokesperson."

"AI bolted onto a traditional organisation delivers very little. Appointing an AI minister while dissolving the department that understands the technology is a step backwards, not forwards."

Charlotte Wilson, Head of Enterprise at Check Point, emphasises the implications for AI security and economic strategy.

"Britain's AI department is at the forefront of the country's productivity strategy, playing a crucial role in how the technology will be developed and rolled out to drive wider economic growth and defence," she notes.

"Any suggestion of redeployment or downsizing could send the wrong signal to businesses and cyber criminals about how seriously we take the most transformational technology in living memory.

“Incoming policymakers should take heed – AI is the gorilla in the room and will remain so for the foreseeable future.

However, some AI sector representatives view the changes as potentially beneficial if implemented quickly.

“AI has the potential to transform Britain's economy, our public services and our security for a generation,” says Tim Flagg, CEO of trade association UKAI.

"Rethinking which department oversees this industry does not necessarily mean Burnham's Britain is turning its back on that potential.

"It could even signal an ambition to go further: AI elevated into a super-department or placed at the very heart of the Cabinet Office. The real danger isn't the ambition – it's the distraction and the delay."

Dedicated AI minister appointed

As well as dismantling DSIT, Burnham has appointed Kanishka Narayan as the UK's first dedicated AI minister.

Narayan previously served as minister for AI and online safety from September 2024 under former Prime Minister Keir Starmer, working under technology secretary Liz Kendall until the recent reshuffle.

"AI is likely the most significant technology in human history," Narayan wrote on X following his appointment.

"Its impact will dwarf other things. Nations have a narrow window to decide whether they shape AI or get shaped by it.

"Britain is in that window right now. While that window is still open, I will act with pace, I will act with ambition, and I will focus relentlessly on securing British influence in shaping AI."

While France and Canada have established senior AI government positions between 2018 and 2023, making Britain not the first G7 nation to create a dedicated ministerial role for the technology, Narayan faces particular challenges in coordinating AI policy across newly fragmented departments.

The restructuring occurs as AI adoption patterns across the UK economy reveal concerning trends.

According to recent research from engineering and technology consulting firm Expleo, a widening confidence gap is emerging among UK business leaders regarding AI tools.

Nearly one-third of business leaders report that losing their current AI tools would leave their work completely unaffected, while only 24% believe their tasks would become more complex without AI, suggesting current implementations are doing little to alleviate operational challenges.

Beyond adoption concerns, AI industry leaders worry the governmental reorganisation could delay critical policy development.

"Technology, one of the UK's priority sectors, is vital to economic growth," adds Tony Kounnis, CEO of Face Int UK & Europe, a tech startup specialising in identity verification.

"Any delays to sector investment and policy development caused by the redistribution of DSIT's responsibilities could be costly."

Tony specifically points to the need for AI governance frameworks.

 "With a change in leadership, it's important that any departmental changes don't cause further disruption to much-needed progress where the regulation of facial recognition technology (FRT) is concerned," he adds.

"As FRT becomes more widely used by police and businesses, the public has also been voicing concerns around excessive surveillance and what it means for their privacy."

The restructuring leaves the AI sector watching closely to see whether the new departmental arrangements can maintain policy momentum on AI safety, development incentives and regulatory frameworks that researchers and companies indicate are essential for the UK's position in the global AI landscape.