Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      The next person to shop your store may not be a person at all

      AI shopping agents are rewriting the rules of online retail across North America

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Cohere's Aidan Gomez bets the house on 'sovereign AI' with Aleph Alpha merger valuing the group at $20bn

      Cohere CEO Aidan Gomez on stage discussing the Toronto AI lab's strategy

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Moonvalley's Naeem Talukdar is selling Hollywood the one thing rival AI video tools cannot: legal cover

      Moonvalley's Marey AI video model produces Hollywood-grade footage trained on licensed data

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Thursday 24 July 2025 7:00 am  |  Updated:  Thursday 24 July 2025 7:34 am

Labour’s OpenAI deal lacks transparency

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
OpenAI chief executive Sam Altman emphasised the Stargate project’s significance.

The Labour government’s newly announced partnership with OpenAI has positioned the UK at the centre of a global discourse on the future of artificial intelligence in public services.

The memorandum of understanding (MoU), signed on Tuesday by tech secretary Peter Kyle and OpenAI chief Sam Altman, sets out a framework for collaboration across sectors like healthcare, education and national security.

Supporters in government have positioned the move as a sign of intent; a sign that Labour aims to make the UK a global hub for innovation, and isn’t afraid to work directly with Big Tech to explore digital transformation at scale.

Officials claim the agreement will accelerate the responsible deployment of generative AI in public services, particularly as the country faces pressure to boost productivity and improve service delivery.

Yet the MoU, which is both non-binding and contains no legal enforcement mechanism, has drawn criticism from academics, MPs, and digital rights campaigners alike, who say the government has released few details about how the partnership will work in practice.

Chi Onwurah, Labour MP and chair of the House of Commons Science and Technology Committee, described the agreement as “very thin on detail”, urging the government to clarify commitments around public data and accountability.

Civil-liberties and digital rights groups have echoed these concerns, warning the MoU may move “too fast without democratic input”.

They point out the absence of binding procurement processes or performance metrics, flagging a potential bypass of independent oversight structures like the AI Safety Institute.

Pressure to innovate, yet regulation remains light

The UK government has resisted more prescriptive regulation, positioning its approach as self-described “pro-innovation”, compared with the EU’s binding AI act and the US’s voluntary regime.

Read more

OpenAI files to go public as the race between tech giants heats up 

Sam Altman discussing OpenAIs ChatGPT advancements at a press conference, emphasizing AI innovation and future developments

Tech secretary Peter Kyle has argued that Britain must remain “nimble”, supporting “safe deployment” of frontier AI without bureaucratic inertia.

James Fisher, chief strategy officer at Qlik, welcomed the move, arguing that the agreement signals the UK is “open for AI”. However, he cautioned that success hinges on robust, real-time data infrastructure.

Meanwhile, others agree that skilled, AI-literate public servants are also key for successful implementation.

But scepticism persists. UCL’s Wayne Holmes said: “It’s just utter, utter drivel and neoliberal nonsense”, and warned that policy makers were succumbing to the AI hype – calling the MoU “crazy”.

Holmes emphasised the urgent need for proactive regulation and public understanding of AI’s limitations.

Supporters argue that this early-stage agreement is a prudent step in an evolving strategy, and note that the government has stressed the MoU does not confer access to public data sets, while future procurement would adhere to existing data protection laws.

As international counterparts move to introduce stricter regulations and oversight, the UK’s “light-touch” strategy may come under increasing scrutiny.

With Labour stating that it will provide more detail in due course, attention now turns to whether the government can back its ambitions with enforcement safeguards and transparent procurement – ensuring that promises of AI-enabled innovation do not outpace public confidence.

Read more

OpenAI listing plans hit as Altman scraps robotics spin-off idea

Sam Altman discussing OpenAIs ChatGPT advancements at a press conference, emphasizing AI innovation and future developments

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Tech
  • Business

People & Organisations

  • artifical intelligence
  • big tech
  • innovation
  • Labour
  • OpenAI
  • Peter Kyle
  • Sam Altman
  • UK tech

Trending Articles

  • As it happened: FTSE 100 relief rally runs out of steam as BP and Shell weigh; Oil hits three-month low

  • London Tech Week sums up everything wrong with UK tech

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

More from CityAM

  • OpenAI files to go public as the race between tech giants heats up 

    Investing
    Sam Altman discussing OpenAIs ChatGPT advancements at a press conference, emphasizing AI innovation and future developments
  • ZayZoon, the Calgary fintech born on a fishing boat, posts 1,487% growth as earned wage access goes mainstream

    ZayZoon co-founder Tate Hackert built the Calgary fintech around earned wage access
  • Botpress raises $25m as Quebec's Sylvain Perron pitches his startup as the 'infrastructure layer' for AI agents

    Botpress product UI: the Quebec startup pitches itself as the infrastructure layer for enterprise AI agents
  • FluidAI wins US FDA clearance for its surgical monitor as Waterloo's Youssef Helwa targets 100,000 operations

    FluidAI's Origin surgical monitor wins FDA clearance for use in US hospitals
  • Liz Kendall hails ‘Brit-maxxing’ as Labour bets £1.1bn on AI chip race

    Tech
    Work and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system
  • London AI jobs boom as Anthropic salaries hit £630k

    Tech
    Anthropics AI technology showcased at a tech conference, highlighting innovative advancements in artificial intelligence
  • Google taps markets for $30bn AI cash call

    Tech
    Googles modern Kings Cross headquarters showcasing innovative architecture in Londons dynamic tech district
  • Former KPMG chief joins £10m funding round for AI-powered audit challenger

    AI
    Cortea founders Valentin Neumann and Phillipp Hovelmann standing together, with Neumann on the left and Hovelmann on the r...
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited