UK tech sector warns DSIT abolition could slow AI policymaking

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UK tech warns on DSIT change

Highlights

Technology responsibilities shift to the Department for Business, Innovation, Science and Trade, with AI Security Institute and public sector AI adoption moving to the Cabinet Office under cabinet-level Kanishka Narayan.
Sector leaders including Saul Klein and Matt Clifford broadly welcome Narayan's elevated role but express concern that abolishing DSIT could slow policymaking and push technology lower on the agenda.
Critics warn that moving the Government Digital Service to Lisa Nandy's department and broader Whitehall restructuring may dilute political support and hinder focus on digital infrastructure and strategic tech issues.

Government overhaul and AI remit

As first reported by the Financial Times and later confirmed by Downing Street on Monday, technology responsibilities are moving under business secretary Jonathan Reynolds in a reworked Department for Business, Innovation, Science and Trade. Under the changes, public sector AI adoption and the AI Security Institute move to the Cabinet Office, where Kanishka Narayan is set to serve jointly with Reynolds' department after his role is elevated to cabinet level.

Baroness Angela Smith says the responsibilities of DSIT have been redistributed to align with the government's economic and social agenda, describing technology and innovation as foundations of future industry, culture and public service delivery. She adds that Prime Minister Andy Burnham, who takes office on Monday, is setting up an AI task force to unlock growth, prosperity and public sector transformation, with strategy led from the Cabinet Office.

The reorganisation also shows signs of confusion around implementation. Number 10 initially says Narayan would serve in Lisa Nandy's renamed Department for Digital, Culture, Media and Sport before clarifying that he would work from DBIST, while multiple people familiar with the discussions say the decision to move AI leadership out of the Cabinet Office is driven by cabinet secretary Dame Antonia Romeo.

Industry concern over policy speed and influence

Investors and founders broadly welcome Narayan's promotion, with Phoenix Court investor Saul Klein saying cabinet-level oversight for AI could be positive given the scale of the technology and Narayan's standing. Matt Clifford of Entrepreneurs First also says Narayan understands the urgency of the opportunity and has brought energy and clarity to the role over the last year.

Even so, many sector figures warn that abolishing DSIT risks pushing technology lower down the policy agenda inside a much larger department. Brent Hoberman of Founders Forum Group says the reaction in the tech community is one of disappointment, while former DSIT AI adviser Tom Westgarth says ministers need to reassure the wider sector that technology will not fall down the pecking order in a super-department.

Critics also focus on the transfer of the Government Digital Service to Nandy's department, arguing that the unit could lose political backing as it tries to spread modern technology through the public sector. Tom Loosemore of Public Digital says digital infrastructure needs strong political muscle, and Ben Johnson of Science Works warns that any Whitehall restructuring carries a large opportunity cost because it becomes harder to secure top-level attention for strategically important issues.

In our earlier article on Andy Burnham’s surprise appointment of John Healey as chancellor, we explained how the unexpected Treasury pick reshaped market expectations around the new government’s economic direction. We also noted investors’ focus on how Healey might balance fiscal credibility with competing spending pressures, particularly around defence commitments.

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