UK puts AI at Cabinet table after axing DSIT

The UK government has abolished the Department for Science, Innovation and Technology and elevated AI to the Cabinet table, reflecting a shifting approach to a technology now embedded across business, public services and daily life. National policy continues to follow a “pro-innovation approach” that aims to support investment while addressing safety, bias, fairness and accountability.

AI adoption is rising quickly among UK companies. The self-reported use of AI in UK businesses with 10 or more employees has nearly tripled since late 2023, rising from around 12% to approximately 35% by June 2026. Almost half of businesses with 250 or more employees report using AI, while over 60% of larger businesses say they use it to improve existing operations. Among workers, 55% report using AI for work or education.

Energy is emerging as a major use case. AI can help forecast demand, manage fluctuations from solar and wind, improve grid stability and reduce reliance on fossil fuel backups. Smart home systems can also learn usage patterns and help households manage consumption, supporting a more efficient energy system built around cleaner generation and more responsive demand.