The prominence of technology in national policymaking has reached a new height in 2025. The government, elected in 2024, wasted little time in signalling that digital innovation and artificial intelligence would form the backbone of the United Kingdom’s future growth strategy. From ambitious frameworks to significant legislation, this has been a year defined by attempts to position the United Kingdom at the forefront of the global technological transition.

As the government’s early commitments move from aspiration to implementation, and with several major Bills either introduced, amended or delayed, the details of a new tech policy era are beginning to take shape. Below is a review of the key developments that have defined the United Kingdom’s year of technology and what they signal for 2026.

The AI Opportunities Action Plan: Setting the Agenda 
The year began with one of the government’s clearest statements of intent: the publication of the AI Opportunities Action Plan, developed by Matt Clifford. The plan set out fifty recommendations to help the United Kingdom harness the economic and societal potential of artificial intelligence, particularly in public services. Central to the recommendations were:

• Making the United Kingdom a sovereign AI nation by driving investment and the development of computing power under public control by 2030, supported by the creation of a national data library.
• Creating AI Growth Zones to host datacentres and accelerate localised innovation.
• Embedding AI across the public sector to make the United Kingdom a genuinely AI powered nation.

Although still emerging in detail, AI Growth Zones are set to become one of the government’s key vehicles for local innovation and economic revival. As recommended in the Action Plan, these Zones aim to bring together skills, data infrastructure and investment to foster high growth ecosystems. Their success will depend on clarity around governance, funding, data access and evaluation, but they are likely to be central to the government’s mission-led industrial approach.

The Spending Review allocated £2 billion for the implementation of the plan. The Plan sets the intellectual and strategic foundations for what follows, reinforcing a government-wide assertion that AI is not only a frontier technology but also a practical tool for economic renewal and improved public service delivery. It remains to be seen how the government will deliver the recommendations it has accepted.

The AI Bill: Delayed but Still Looming

One of the Government’s most ambitious pledges was the introduction of a comprehensive AI Bill, although this has now slipped into 2026. Initially pledged for early in the new administration, the delay reflects both the complexity of regulating rapidly advancing technologies and the political debates surrounding scope, rights and innovation.

The absence of a fully developed legal framework raises several concerns:

• Public trust, particularly where AI is deployed in sensitive public service contexts.
• Regulatory clarity, as businesses continue to press for clear standards and safeguards.
• Creative industry tensions, given the opposition to the Copyright and AI Bill from the Lords and from creators concerned about model training practices.

While the pace of technological change often outpaces legislative cycles, the government will face increasing pressure to set out clearer rules to protect the public and give innovators confidence. Parliamentarians in both Houses have repeatedly called for legislation that enhances public trust and engagement with emerging technologies. This aligns with public sentiment. A nationally representative survey by the Ada Lovelace Institute and the Alan Turing Institute found that 72% of the UK public would feel more comfortable with AI if it were regulated. This is an increase of ten percentage points from 2022 and 2023. However, the demand for oversight has not yet been matched by policy action. 

Modern Industrial Strategy: Betting on Digital Technologies 
June 2025 saw the publication of the Modern Industrial Strategy and accompanying sector plans. Technology and digital infrastructure were placed at the heart of the United Kingdom’s long term economic ambitions, and digital technologies were identified as a critical growth sector. The Strategy marks a clear shift towards mission oriented policy, linking innovation to national challenges such as productivity, public service reform and regional inequality. It identifies people and skills as a key priority, highlighting the need for a workforce equipped with the digital skills required for future growth. Innovation and data are also presented as major drivers of the United Kingdom’s economic potential.

June also saw important announcements in the Spending Review, with the government setting out spending plans on AI and digital technologies. 

Data Use and Access Act: Modernising the United Kingdom’s Data Landscape 
After months of debate, the Data Use and Access Act received Royal Assent in 2025. The Act is intended to modernise the United Kingdom’s data protection framework while enhancing access and secure data sharing to support innovation and improve public service outcomes.

Key measures include:

• Smart Data schemes that support interoperable data sharing across sectors such as finance, transport, energy and home buying.
• Digital ID, providing a structure for secure verification, although this has already generated significant concern from civil society.
• A recognised legitimate interest list, simplifying data use in areas such as crime prevention, safeguarding and emergency response.
• Standardised health and care IT systems, which could save thousands of NHS staff hours and reduce medication errors.
• A risk-based model for automated decision making, distinguishing low-risk uses from high-risk cases that require stronger safeguards.

While the Act represents an incremental rather than a radical reform, and remains broadly aligned with EU approaches, it lays important foundations for smoother data flows across sectors. This is particularly relevant for healthcare data and supports the government’s ambitions for an analogue to digital shift within the NHS.

Cyber Security and Resilience: Strengthening the United Kingdom’s Digital Defences 
Another significant development this year was the passage of the Cyber Security and Resilience (Network and Information Systems) Bill. This legislation represents an important step in modernising the United Kingdom’s defensive posture.

First signalled in the King’s Speech in July 2024, the legislation expands the scope of existing cyber security regulations and strengthens the powers of regulators to ensure that essential services are adequately protected. As the government continues to push forward with digital transformation and AI-enabled public service delivery, the Bill was both timely and necessary.

Its importance is clear. Resilience is essential for innovation. Without secure infrastructure, the Government’s wider digital ambitions, from automated decision making to Smart Data initiatives, would be significantly more vulnerable to disruption.

Digital ID: A Growing Flashpoint 
The Government’s commitment to rolling out a Digital ID framework has become one of the most contentious issues in the data policy landscape. While ministers argue that Digital ID will simplify access to services and reduce fraud, critics warn of privacy risks, mission creep and insufficient safeguards. In September 2025 the Government announced that a new Digital ID scheme would be rolled out across the United Kingdom. Parliament remains divided on whether this is the right policy approach. Numerous petitions have been submitted urging the Government not to proceed. One criticism is raised repeatedly. Unless the purpose of Digital ID is clearly communicated, public acceptance is likely to remain low.

Further developments are expected in the new year, particularly as the Government intends to roll out the scheme by the end of the Parliament.

Looking Ahead to 2026 
As we look ahead to 2026, many questions remain unanswered, particularly regarding the implementation of the Government’s AI policy agenda. With the recently appointed Secretary of State for Science, Innovation and Technology, Liz Kendall MP and AI Minister, Kanishka Narayanan MP, driving the agenda forward, the Government faces several major tests. Can the further implementation of the Online Safety Act be delivered proportionately? Will the AI Bill finally be brought forward, and will it address growing concerns while driving innovation?

The United Kingdom has placed technology at the centre of its strategy for economic and public service transformation. Whether this becomes a long-term national advantage will depend on regulatory clarity, public confidence and the Government’s ability to shift from vision to execution.

What is already clear is that 2025 marked a turning point. The challenge for 2026 will be to ensure that the policies launched this year translate into practical, secure and inclusive technological progress.