DSIT

United Kingdo
2026-07-22 09:27:36

UK scraps DSIT as AI gets a Cabinet seat, while scrutiny grows over a claimed £45 billion in annual savings

The UK government reshaped its technology apparatus within days of Prime Minister Andy Burnham taking office, abolishing the Department for Science, Innovation and Technology (DSIT) while elevating AI to Cabinet level for the first time through the appointment of Kanishka Narayan as AI minister. The move came in the same week that the National Audit Office said the government lacked a consistent method for calculating efficiency gains tied to digital transformation and AI, including a widely cited claim that those efforts could save £45 billion a year. The restructuring split DSIT’s functions across a new business-focused department, the Cabinet Office and the renamed culture and digital department. That drew criticism from UK tech groups including techUK and Startup Coalition, which warned the shake-up could slow work on the AI Security Institute, sovereign AI funding, GDS and UKRI. The article also contrasts the government’s decision to scrap Brit Card, a digital ID scheme once estimated by the Office for Budget Responsibility to cost £1.8 billion over three years, with its continued reliance on the far less concrete £45 billion savings figure. At the center of the debate is not only how governments organize AI policy, but how political systems treat hard costs and projected savings very differently.

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UK scraps DSIT as AI gets a Cabinet seat, while scrutiny grows over a claimed £45 billion in annual savings