Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the contribution of international cooperation to the delivery of the UK's AI strategy; and what steps they are taking to strengthen bilateral and multilateral partnerships to promote responsible AI development and economic competitiveness.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

International collaboration is vital to ensure the UK can unlock AI’s full potential.

The UK has sought to be a global leader in AI, developing our bilateral and multilateral partnerships to ensure effective collaboration towards safe, secure and responsible AI, and deliver on the AI Opportunities Action Plan.

We work bilaterally to advance UK interests and support economic growth, ranging from bilateral AI and compute partnerships with countries including Canada, France and the Netherlands, funding UK involvement in the multilateral EuroHPC Joint Undertaking and signing the U.S.-UK Technology Prosperity Deal in September 2025. We are also leading contributors to multilateral fora, including the AI Summit series initiated by the UK at Bletchley Park in November 2023. The most recent summit took place in India, and the Deputy Prime Minister led the UK delegation. The UK is secretariat to the International AI Safety Report – the world’s first comprehensive synthesis of evidence on advanced AI risks and capabilities, which is an important foundation for international collaboration. We are also shaping the global conversation on AI at the UN, OECD, G7 and G20.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the potential contribution of AI to productivity growth in the UK, particularly in professional services; and what steps they are taking to ensure that small and medium-sized enterprises are able to adopt AI tools to increase productivity.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government recognises the significant role that digital and information technologies play in driving productivity growth across the UK economy. OECD analysis indicates that widespread AI adoption could raise UK productivity by 0.4–1.3 percentage points annually, potentially adding £55–140 billion in GVA by 2030.

The Government is committed to realising these benefits, especially for small and medium-sized enterprises (SMEs). Shaheen Sayed, Chief Commercial Officer at Accenture has been appointed as the Professional Business Services (PBS) AI Champion. She will serve as a strategic link between industry and government, with a key objective to encourage PBS SMEs to adopt AI and digital technologies as a key enabler to growth and improved productivity. We are also working directly with industry on our ambitious commitment to upskill 10 million workers with essential AI skills for work through our AI Skills Boost programme.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of the use of AI and assistive technologies in adult social care and elderly support services, in particular its impact on improving independence and quality of life for older people.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

Artificial intelligence (AI) and assistive technologies can support people to live high-quality, independent lives for longer. Such technologies are already being used across adult social care by care providers and local authorities to enable more preventative and personalised care, save staff time, and improve care coordination.

To help assess the use of technologies in adult social care, the Government has funded testing and evaluation of technologies in social care, including AI-enabled technologies, through the Adult Social Care Technology Fund. Emerging evidence indicates positive outcomes for people in receipt of care, care professionals, and the wider health and social care system. People using technology experienced greater independence, safety, wellbeing, and quality of life. We will publish the findings from these projects.

The Government is committed to supporting safe and appropriate adoption of technologies in social care. We are setting new national standards for care technologies and producing trusted guidance, so that people can confidently buy and use technology which support them or the people they care for. To support appropriate use of AI in adult social care, we have published guidance for care providers on AI use cases and tips for safe and responsible use. We will be setting out the Government’s strategic approach to AI in adult social care, alongside its approach to AI in health, through the National AI Roadmap. We have also launched the Adult Social Care Assessments Improvement Toolkit to help local authorities find digital and AI-enabled tools to improve services and the quality-of-care delivery.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the role of publicly-backed development finance institutions in supporting access to growth capital for small and medium-sized enterprises; and what steps they are taking to encourage collaboration between those institutions and commercial lenders to support regional economic development.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government recognises the important role that Public Financial Institutions play in improving businesses’ access to growth capital.

The British Business Bank (BBB), as the UK’s economic development bank, has supported over 100,000 smaller businesses through its programmes and has a strong track record of crowding in private capital into early‑stage equity and later‑stage growth finance.

At the Spending Review the Government expanded the BBB’s total financial capacity to £25.6 billion, enabling it to support a greater volume and range of investments. As part of this uplift, the BBB’s new Industrial Strategy Growth Capital initiative will provide £4 billion of capital to the eight priority Industrial Strategy Sectors, leveraging £12 billion of further private investment.

To help the next generation of UK unicorns at the critical stage when access to scale-up capital is most challenging, the BBB will support 10 new-to-market growth-stage fundraisings over the next 10 years, increasing the number of such funds in the market by 100 per cent.

The BBB will also deploy £2.6 billion to ensure entrepreneurs across the UK — regardless of location or background—can access the finance required to grow. This support will boost smaller business growth across all nations and regions.

The UK’s export credit agency, UK Export Finance (UKEF), also supports SMEs and regional growth by ensuring no viable UK export fails through lack of finance and insurance. UKEF offers finance for SME exporters through commercial lenders. Last year, the Government increased UKEF’s capacity by £20 billion, bringing the total to £80 billion, and is legislating to increase statutory limits of UKEF support so lack of capacity does not limit support for exporters.

We continue to strengthen coordination between PuFins. The BBB’s new Strategic Plan commits to working more closely with other Public Financial Institutions to provide clearer, more joined up routes for businesses to access the right form of finance at the right stage of their growth.

The Government will continue to monitor the effectiveness of development finance interventions and ensure they complement private‑sector activity while supporting enterprise, innovation and economic growth across every region.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the potential labour market impacts of AI-related displacement of staff; what consideration they have given to transitional income support or retraining mechanisms to assist affected workers; and what assessment they have made of the fiscal and productivity impacts of those measures.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government recognises that AI is transforming workplaces, demanding new skills and augmenting existing roles. We have launched the AI and the Future of Work Unit - a cross‑government function to research and monitor AI’s economic and labour market impacts and provide timely advice on when new policies should be implemented. We published an initial assessment of AI impacts on the labour markets in January 2026 and are preparing for a range of possible futures to ensure positive outcomes for the economy, jobs, and workers.

We are also acting now to upskill 10 million workers in AI skills by 2030 through the AI Skills Boost programme, which aims to build a digitally skilled workforce to support long-term economic growth, drive innovation and expand individual

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the cybersecurity risks arising from the deployment of advanced or autonomous AI systems with significant access to the data of businesses and public sector organisations.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

We're confident that AI will bring huge benefits to businesses and public sector organisations.

Last year the government published the AI Cyber Security Code of Practice which sets out measures to address cyber security risks to AI systems.

Organisations which develop and deploy AI systems should use this code to protect our citizens and our digital economy, while ensuring the many benefits of AI can be realised

To complement this, the AI Security Institute conducts research on the risks posed by frontier AI, including cyber offensive capabilities. The Institute shares insights with Government security organisations, including the National Cyber Security Centre, to ensure the Government can plan for serious AI impacts.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the UK's role in international AI safety governance; and what steps they are taking to strengthen the capacity, resources and global partnerships of the AI Security Institute to support international standards setting and risk evaluation.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The UK AI Security Institute (AISI) was the world’s first state-backed organisation dedicated to providing a scientific of understanding transformative AI capabilities and their associated risks. AISI work and research is world-leading and similar institutes have been created across the world in UK AISI’s image.

UK AISI works closely with international partners to share information on the latest AI capabilities to inform decision making. UK AISI works particularly closely with the UK’s security partners to share information on AI capabilities as they relate to mutual national security matters.

UK AISI has agreements in place with the US Center for AI Standards and Innovation (US CAISI), Singapore AISI and other international partners to formalize AI security co-operation, informing international AI governance.

UK AISI is the coordinator of the International Network for Advanced AI Measurement, Evaluation and Science. The Network brings together international partners to advance AI evaluation science and measurement.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the deployment of AI systems in robotics and machinery; and what plans they have to introduce frameworks to regulate that deployment.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

AI-enabled capabilities in robotics and autonomous systems are supporting growth as an essential driver of productivity across sectors including manufacturing, healthcare, and logistics. The Government is accelerating the adoption of these technologies through a new set of £52m Robotics Adoption Hubs to provide businesses with the expertise to understand and use these systems.

In response to the AI Action Plan, the Government committed to work with regulators to boost their capabilities. The government has been clear that we will legislate where needed but we will do so based on evidence where any serious gaps are.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the use of AI tools in recruitment processes, including automated screening systems; and what guidance or regulatory frameworks are in place to prevent algorithmic bias and promote fair access to employment opportunities.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government is committed to removing barriers to AI adoption, unlocking new opportunities, while ensuring technologies are fair, inclusive and accessible.

We have published the Responsible AI in Recruitment guidance which sets out good practice procuring and deploying AI systems for HR and recruitment. This guidance highlights the mechanisms that can be used to ensure the safe and trustworthy use of AI in recruitment.

A range of existing regulatory frameworks already apply to AI systems in the UK, such as data protection, equality legislation and other forms of sectoral regulation. The government will act where additional protections are needed.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the impact of digitalisation and automation on recruitment patterns in the UK financial services sector; and what steps they are taking to ensure that higher education and professional training pathways meet changing skills demand in this regard.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

Setting the UK’s financial services sector up with the skills and talent it needs is an important pillar of the Government’s Financial Services Growth and Competitiveness Strategy.

The Economic Secretary commissioned the Financial Services Skills Commission (FSSC) to produce a report on how the skills system can drive growth and productivity by supporting more effective adoption and innovation of AI and other disruptive technologies. The FSSC have committed to reporting back by the end of the year.

We work closely with employers, sector bodies and providers to ensure training aligns with labour‑market demand, including through Local Skills Improvement Plans. Our reforms to higher technical education, including the rollout of Higher Technical Qualifications and the expansion of degree apprenticeships and modular learning through the Lifelong Learning Entitlement, are improving the quality and flexibility of skills pathways.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of the impact of proposals to indefinitely recognise CE-marked medical devices on the availability of medical technologies in the UK.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

Approximately 90% of medical devices currently on the British market are CE marked and their continued supply to the National Health Service and wider health system is vital for patient access to essential products. The Medicines and Healthcare products Regulatory Agency recognises CE marked products until 2028 or 2030, depending on risk classification and the European Union legislation they comply with. The proposals are intended to allow continued access to medical devices that have been assessed as safe and effective in the EU while aligning with international best practice. As Northern Ireland follows EU medical devices regulations, continued recognition of CE marked medical devices in Great Britain would further support the functioning of the UK Internal Market, as manufacturers could continue to place the same product on the entire United Kingdom market.

The proposals are anticipated to drive growth in the medical technology sector by reducing administrative costs and safeguarding the continued supply of medical technologies. The purpose of the proposed policy is to enable indefinite market access for CE marked medical devices on the British market. The impact on safety, availability, and favourability may vary depending on whether all devices are recognised, or just devices that are the same risk class in Great Britain, or lower. An assessment of each proposal against the availability of medical devices can be found in Annex C of the published consultation document, which is available on the GOV.UK website.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of the role of AI tools in supporting radiologists and improving diagnostic capacity in the NHS breast screening programme.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

The Department is actively testing artificial intelligence (AI) in areas with significant impact on health and the economy. AI tools have demonstrated clear potential in aiding radiologists and enhancing diagnostic capacity within the National Health Service, especially in breast screening.

While no formal assessment has yet been completed, emerging evidence is already highlighting the benefits that AI can provide to the NHS. Previously, two radiologists were required to review each scan, but now an AI assistant can perform a preliminary check, which is then verified by a qualified radiologist. This approach reduces the number of radiologists needed to review each scan, but it does not result in fewer radiologists employed by the NHS. Instead, it enables clinicians to work more efficiently and to review a greater volume of scans, thereby improving diagnostic capacity and ensuring more patients are seen promptly.

Furthermore, on 4 February 2025, the Department announced that nearly 700,000 women nationwide will participate in the world-leading Early Detection using Information Technology in Health (EDITH) trial. This initiative aims to test advanced AI tools to detect breast cancer cases earlier and is supported by £11 million of Government funding through the National Institute for Health and Care Research.

The Department is pursuing significant initiatives to evaluate and expand the use of AI in NHS breast screening. Early evidence points to improved efficiency and diagnostic capacity, and the EDITH trial will further examine the potential of AI in delivering earlier detection of breast cancer for patients across the country.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what guidance they have issued to civil servants about the use of generative AI tools in drafting policy advice and official correspondence; and what measures are in place to ensure accuracy and data security.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

His Majesty’s Government has issued cross‑government guidance and training to civil servants supporting the safe and responsible use of generative AI.

The AI Knowledge Hub was launched in May 2025. This includes core principles and relevant guidance for civil servants and supersedes the AI Playbook for Government.

From October 2025 to February 2026 over 221,000 civil servants took part in a learning initiative ‘AI for All’ which built foundational AI knowledge, developed literacy and gave staff the skills to use AI responsibly, including drafting advice and correspondence.

We are committed to ensuring that the adoption of AI is safe, effective, efficient and ethical. Tools such as the Data and AI Ethics Framework and Model for Responsible Innovation help teams manage risks.

To ensure accuracy and application of data security principles, departments participate in large‑scale pilots designed to generate real‑world evidence on AI performance.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the use of generative AI tools by consumers for pension planning and investment decision-making; and what steps they are taking to ensure that appropriate consumer protections and regulatory safeguards are in place.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

HMT has recently appointed Harriet Rees and Rohit Dhawan as Financial Services AI Champions. They will focus on helping firms seize opportunities of AI while protecting consumers and ensuring financial stability.

In recognition of growing consumer interest in these tools, the Financial Conduct Authority (FCA) has published information for consumers on using AI for investment research. This sets out the pros and cons of such tools, including the risk of incorrect or out-of-date information, and makes clear that advice from general purpose AI tools is not regulated and does not benefit from protections such as the Financial Services Compensation Scheme or the Financial Ombudsman Service.

The FCA also launched the Mills Review in January 2026 which will consider the implications of advanced AI on consumers, retail financial markets and regulators. The review will help the FCA support innovation while promoting the safe and trusted adoption of AI in retail financial services.

Question to the Department for Education:

To ask His Majesty's Government what steps they are taking to ensure that AI tools are deployed safely in schools under the expansion of the EdTech Testbeds pilot programme.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The government is taking clear, evidence-based steps to ensure artificial intelligence (AI) tools are deployed safely. The EdTech Testbeds programme will test educational technologies, including AI and Assistive Technologies, in real education settings to evaluate their impact on workload, learner outcomes and inclusion. Alongside this, we have introduced Generative AI Product Safety Standards, which set out strict safeguards. These include child-centred design, enhanced filtering of harmful content and strong data protection and safeguarding requirements.

To support safe adoption, we have published materials created with the Chiltern Learning Trust and the Chartered College of Teaching, to help teachers and leaders use AI responsibly and effectively.

These measures, combined with strengthened digital and technology standards for all schools, ensure that AI can be introduced safely while delivering meaningful educational benefits.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the contribution of fintech lending platforms to improving access to working capital for small and medium-sized enterprises.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK is a world leader in Fintech, and attracted $3.6 billion of investment in 2025, second only to the US. The Government is committed to making the UK the world’s most technologically advanced global financial centre, and remaining a leading jurisdiction for fintech firms to start-up, scale and list.

Fintechs and specialist banks are an essential part of the UK's credit landscape, including access to working capital. The share of total nominal gross bank lending to SMEs by challenger and specialist banks in 2024 was 60 per cent.

Business models and financial technology have also evolved substantially, with more competition both for business banking and credit provision, increasing the options available to small and medium-sized enterprises to invest in and grow their businesses.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the implications for employment law, taxation and consumer protection of workers being paid in stablecoins or other digital assets.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Income Tax, National Insurance Contributions and PAYE rules for non-money earnings apply to stablecoins and other cryptoassets in the same way as other assets. HMRC has set out guidance explaining how tax rules apply to employment earnings in the form of cryptoassets.

As the market for cryptoassets evolves, the Government will continue to keep the tax framework under review.

The Government has also introduced a new financial services regulatory regime for cryptoassets which will raise standards, strengthen consumer protection, and address market abuse.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the level of competition within the UK’s retail payments market, particularly in relation to international card schemes; and what steps they are taking to support the development of competitive domestic payment infrastructure.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK has a diverse and competitive retail payments ecosystem, with a significant number of entrants into the sector in recent years.

The UK nonetheless remains a heavily card-based market. The Government recognises that greater choice in how to make and receive payments is likely to increase innovation and downward competitive pressure on the cost of payments.

In the National Payments Vision the government set out its ambition for account-to-account payments to be developed as a ubiquitous payment method – enabling consumers to pay digitally for goods and services in shops and online, without using a card. A new Retail Payments Infrastructure Board, chaired by the Bank of England and with representation from across the payments ecosystem, is currently working to design the UK’s future retail payments infrastructure in line with the government’s vision.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the role of AI tools integrated in e-commerce platforms in supporting productivity growth of small and medium-sized enterprises; and what impact that assessment has on their strategy for digital adoption by UK businesses.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

AI tools integrated into e-commerce platforms can help small and medium-sized enterprises (SMEs) to become more productive by automating routine tasks and improving data-based decision-making, for example on marketing, customer service and stock management.

The Department for Business and Trade is committed to increasing SME digital capability and AI confidence and is implementing the SME Digital Adoption Taskforce recommendations to address barriers such as lack of information, resources and skills. This includes convening industry roundtables to partner on delivering more, running local digital adoption pilots to test what support works best as well as linking up with the Business Growth Service to improve SME access to existing support.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the use of financial data by departments to support strategic decision-making and value-for-money assessments; and what steps they are taking to strengthen financial management capability in the public sector.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government routinely assesses how departments use financial information to support strategic decision-making and value for money. This includes scrutiny during Spending Reviews, regular engagement between HM Treasury and departments on budgets and forecasts, an End-of-Year assessment measuring financial performance, through departmental Annual Reports and Accounts, and through National Audit Office examinations, which provide independent assurance on the quality, transparency and use of financial data.

Departments routinely provide finance data to the HM Treasury OSCAR system, setting out their forecasts, budgets and spend to date. Departments report their forecast and actual efficiencies to HM Treasury. Accounting Officers of departments are responsible for value for money in the use of public funds, and in this they are supported by the guidance, budgeting and accounting framework provided by HM Treasury.

The Government is taking steps to strengthen financial management capability across the public sector through the Government Finance Function’s learning and development offer, which aims to build financial capability and develop a skilled and talented workforce. The Finance Function’s Government Finance Academy provides core learning offers which strengthen financial literacy across Government in key areas such as value for money, budgeting & forecasting, and provides professional training and development for finance professionals.

The Function also supports the development of talent pipelines and leadership capability across departments by building career frameworks and pathways that support progression. The Function connects some 9,000 finance professionals across government through its communities, networks and events, which further builds financial capability by providing opportunities for shared learning and fostering professional excellence.

The Government is modernising finance operations to support better decision‑making, including enhancing digital skills, promoting modern finance practices and encouraging the adoption of shared services and improved systems. Through common finance standards and data approaches the function enables departments to access high‑quality, reliable financial information, underpinning stronger financial management and improved value for money across government.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of (1) the use of artificial intelligence tools by consumers when making mortgage and other financial product decisions, and (2) the implications of that use for consumer protection.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The majority of mortgage loans are intermediated. Mortgage brokers are regulated by the Financial Conduct Authority and must comply with FCA Rules including the Consumer Duty and relevant mortgage conduct rules.

Regulated firms are already required to manage technology-related risks to consumers and financial stability, including those arising from the use of artificial intelligence (AI), under existing FCA rules. These include requirements relating to governance, operational resilience and data use.

The Government believes that the safe adoption of AI by the financial services sector is a major strategic opportunity that will power growth across the economy. As set out by the Chancellor in her Mais lecture, the Government’s ambition is for the UK to be the fastest adopter of AI in the G7, to boost productivity, drive economic growth, and deliver better products for consumers.

Question to the Department for Digital, Culture, Media & Sport:

To ask His Majesty's Government what assessment they have made of the financial sustainability of the workforce in the United Kingdom’s film and television production sector.

Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)

The UK’s creative industries generated £145.8 billion in GVA in 2024 — 5.6% of the economy — with film, TV, radio and photography contributing £23.5 billion. The sector’s growth and global strengths position the UK to lead in film and television production. To realise that ambition, we need a skilled and sustainable workforce. That is why our Sector Plan designates film, TV and video games as a frontier industry, signalling their priority status for future investment and support.

From April 2026, a £75 million Screen Growth Package will support independent UK content, attract inward investment and expand skills development, creating more jobs and greater long‑term stability across the sector. The Sector Plan also boosts access to finance through the British Business Bank, expanded debt and equity options, and tailored support for producers.

We are raising standards across the sector by acting on the Good Work Review, establishing the Creative Industries Independent Standards Authority and supporting the BFI’s £1.5 million WorkWise for Screen programme. Freelancers will have a stronger voice through a new Creative Freelance Champion, while the Employment Rights Act 2025 will tackle late payments, guarantee written contracts and extend health and safety protections.

We are also strengthening the skills and talent pipeline through major investment: expanding the National Film and Television School, scaling up the BFI Film Academy and delivering £725 million through the next phase of the Growth and Skills Levy, including fully funded SME apprenticeships for eligible under‑25s. From April 2026, new short courses in digital, AI and engineering will support Industrial Strategy sectors, complemented by work with DWP and Skills England to ensure training genuinely reflects the needs of creative employers.