TL;DR

UK Work Secretary Liz Kendall is establishing a cross-government unit including employers and trade unions to monitor AI’s impact on jobs. She has promised AI training for all British adults while acknowledging that “disruption is inevitable” and jobs will be lost.

Labour’s AI Gamble

The Starmer government has largely downplayed AI safety concerns in favour of betting Britain can profit from the AI boom. This week it announced a fifth “AI Growth Zone” in Lanarkshire, where data centres receive energy discounts of up to £24/MWh.

The government has also directly invested £25m in Kraken, an energy analytics company it sees as a national champion. Immigration restrictions are being relaxed specifically for software engineers and AI specialists through the Global Talent visa.

Preparing for Disruption

Kendall compared the coming AI transition to deindustrialisation a generation ago—a shift large parts of the country still haven’t adapted to.

“Whole industries were decimated and people were just left to cope on their own,” she said. “We’re completely different.”

Investment Minister Jason Stockwood suggested “some sort” of universal basic income could be introduced to protect displaced workers, though this isn’t official government policy.

AI in Education

Rather than banning AI in schools, which officials say doesn’t work and encourages cheating, the government is asking tech companies to help build dedicated AI tutors. The goal is a “Socratic” AI model that tests and extends student knowledge through question-and-answer sessions.

Ministers argue disadvantaged pupils have the most to gain from such software, providing advantages that wealthier families currently pay private tutors for.

Broader Safety Concerns

The AI Security Institute is examining the rise of “AI companionship,” with research showing 33% of UK adults have used AI for emotional needs. Officials say safeguards against “emotional dependence” are needed but must be balanced against benefits in reducing loneliness.