Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what processes are in place to verify investment claims associated with large-scale AI infrastructure projects in the UK; and what steps they are taking to ensure transparency and accountability in the reporting of such investments.

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

Decisions on investment are a matter for private companies. The Government has been clear that it will encourage and support investments that will enable UK firms and people to benefit. Many of the large-scale AI infrastructure projects in the UK have been publicly announced, with most of these having press releases available on Gov.uk. The Government continues to engage across the board on these investments to ensure that they deliver the best outcomes for the UK.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of support programmes available to small and medium-sized enterprises for AI adoption; and what steps they are taking to improve productivity, innovation and regional economic development.

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

We are committed to ensuring the UK is the leading adopter of AI in the G7, and the Government will look at how regulation, data and access to finance can support adoption including by working closely with sectoral AI Champions to identify new solutions. Upskilling is a crucial way to ensure the UK workforce can capitalise on the opportunities of AI. To support this, the Government has launched the AI Skills Boost campaign to upskill 10 million workers in AI skills by 2030.

We are ensuring that UK businesses can access the guidance and expertise they need to adopt AI and drive transformational growth. We are expanding Innovate UK’s BridgeAI programme across our Industrial Strategy sectors and have launched the Centre for AI-Driven Innovation in Imperial College London in partnership with the World Economic Forum. Each AI Growth Zone will also receive £5 million to go towards local AI adoption and upskilling.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the growth of UK-based AI start-ups, including the emergence of new unicorn companies; and what steps they are taking to improve access to scale-up finance, talent and long-term competitiveness in this area.

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

The UK has a flourishing AI start-up ecosystem, and as of early 2026, the UK is home to over 150 tech unicorns, ranking it 3rd globally for venture capital-backed innovation.

We’re strengthening the UK’s scale-up finance ecosystem to help high-growth companies - including AI start-ups - start, scale and remain in the UK. This includes strengthening long-term capital through an expanded remit for the National Wealth Fund, increasing its capitalisation to £27.8 billion and scaling up the British Business Bank to £25.6 billion, as well as increasing annual investments by two-thirds to around £2.5 billion and committing £5 billion to growth-stage funds.

We have a world leading R&D and talent ecosystem which is a major attraction globally. We have also established the Sovereign AI Unit, backed by up to £500 million, to invest in and support high-growth UK AI companies. Our AI Opportunities Action Plan demonstrates how we are delivering a long-term strategy to ensure that the UK remains one of the best places in the world to start, scale and grow AI companies.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of large-scale AI data centre developments on regional economic growth.

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

Data centres are foundational to a competitive UK economy, underpinning the digital services that drive productivity across sectors—from finance and advanced manufacturing to public services and the creative industries. By enabling AI, cloud computing and data‑intensive services, they deliver economy‑wide productivity gains nationally and regionally, as well as strengthen the UK’s attractiveness as an investment destination.

TechUK has estimated that UK data centres contribute £4.7 billion pounds in gross value added each year and support-tens of thousands of high-quality jobs across construction, operations and specialist supply chains. Operational employment is generally highly skilled and well paid, with wider employment supported through demand for electrical engineering, cooling, digital infrastructure and maintenance services. More widely, TechUK estimates that each job funded by data centre operations supports between 1.4–2.5 jobs in the wider economy.

HMG’s AI Growth Zone programme unlocks significant private investment and secures compute to drive AI growth, supporting high‑value local jobs and skills. HMG is investing up to £5 million per AI Growth Zone, in the North-East of England, Oxfordshire, North and South Wales, and Lanarkshire in Scotland, working with local areas to design tailored schemes to realise local economic benefits and boost AI adoption in local communities.

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 corporate governance and decision-making processes within financial institutions; and what steps they are taking to ensure that regulatory frameworks relating to accountability, transparency and oversight remain effective.

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

The Government’s ambition is to make the UK the fastest AI adopter in the G7 and encouraging safe adoption is an essential part of realising that ambition. We will continue to work closely with regulators and industry to ensure innovation proceeds safely and responsibly in the financial sector. In January 2026, the government also appointed Financial Services AI Champions to catalyse adoption and innovation of AI in this sector.

UK regulated financial firms are required to manage technology-related risks to consumers and financial stability, including those arising from the use of AI. These include requirements relating to governance and accountability. Alongside this, HM Treasury and the regulators are continually reviewing our approach as new technology develops to ensure that the framework continues to develop accordingly, and can be strengthened should this become necessary.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the risks to the UK's supply chains of essential goods, including food, fuel and medicines, arising from the conflict in the Middle East; and what steps they are taking to strengthen resilience and contingency planning.

Answered by Lord Stockwood - Minister of State (HM Treasury)

DBT continuously assesses supply chain risks, mitigations, and potential interventions. The UK’s economic fundamentals remain strong. Supply of inputs and commodities remains stable and generally well diversified.

As the UK imports very low amounts of petrol, diesel and crude oil from the Middle East, we have not experienced supply issues. The Middle East is not a major source of UK food imports. Government does not currently expect any impact on food availability for consumers.

Government has already acted to strengthen UK economic resilience, including expanding the forthcoming British Industrial Competitiveness Scheme (BICS) and restarting production at the Ensus plant.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the impact on the UK economy of the conflict in the Middle East, including impact on energy prices, trade and inflation; and what steps they are taking to ensure economic resilience.

Answered by Lord Stockwood - Minister of State (HM Treasury)

Government is closely monitoring the potential impact of disruption to trade and the wider economy. As with the conflict itself, there remains uncertainty about the scale and duration of the resulting economic and trade shock.

The UK has a diverse and resilient energy system, and Government has already taken action on energy prices, including allocating £50m for heating oil support for low‑income households and expanding the forthcoming British Industrial Competitiveness Scheme (BICS).

Rapid de-escalation in the Middle East remains the best way to protect the UK economy. Government continues to work internationally to support a diplomatic solution to the conflict.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to support international competitiveness, inward investment and the development of AI infrastructure in the UK.

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

AI is the defining technology of our era, with the potential to transform productivity across the entire economy. We are working to ensure the growth and productivity gains from new technology are realised in the UK to the benefit of working people.

We’ll do this by building sufficient compute to protect our interests and avoid excessive dependencies on others. We have already announced five AI Growth Zones and are working with local authorities, regulators and industry to identify suitable locations, accelerate delivery and remove barriers to development. At the same time, we are backing sectors where the UK has real strengths through our Sovereign AI Unit, which will invest directly in promising UK AI companies.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of data security risks associated with the adoption of artificial intelligence systems by small and medium-sized enterprises in the hospitality sector; and what guidance they have issued about the safe deployment of those systems.

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

Organisations that process personal data through the deployment of AI systems must comply with the UK’s data protection legislation, as set out in the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018 (DPA). This includes a requirement to put in place appropriate technical and organisational measures to ensure the security of personal data.

The Information Commissioner’s Office, the UK’s independent regulator for data protection, has published guidance for organisations on artificial intelligence and data protection available at: https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/artificial-intelligence/. Additionally, the UK Government has published a Code of Practice that sets baseline security requirements for AI tools, models and systems. The Code has informed the development of an AI security global standard in ETSI (EN 304 223) which was published in December 2025.

The Government also supports the UK’s AI assurance market, and has set out our ambitions for the sector in the Roadmap to Trusted Third-Party AI Assurance. AI assurance is crucial to ensure that AI systems are developed and deployed responsibly and in compliance with the law, so that businesses can confidently invest in new AI products and innovate at pace.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the role of fintech firms in providing capital to support scaling businesses.

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.

Over the last decade, fintechs and specialist banks have commanded a materially higher share of new SME lending, and 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%. Over the same period, 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 Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the use of AI tools to generate legal correspondence and documentation.

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

While government has published general principles and guidance on the responsible use of AI, focused on use within government and the public sector, it has not made a specific assessment of the use of AI tools to generate legal correspondence and documentation in the wider public domain or in private sector legal practice.

Existing guidance and resources on the AI Knowledge Hub, which includes the AI Playbook, are intended to support public sector organisations to adopt AI safely, responsibly and effectively, by setting out principles, legal and ethical considerations, and practical support rather than evaluating or endorsing particular uses or tools.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the use of AI technologies in the modernisation of energy systems.

Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)

The Department is working at pace to understand and develop the opportunities AI brings to the energy system. The AI Clean Energy Strategy will be published in the autumn, and will set out next steps on reforms and a delivery roadmap.

In parallel, the Department has commissioned the AI and Clean Energy Champion to produce a review of AI opportunities in the electricity networks, due to conclude in June. This will study potential benefits and barriers to deployment.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the implications of the increasing use of AI tools in the creation and distribution of digital content for intellectual property frameworks and the UK's creative industries; and what steps they are taking to support innovation while protecting the rights of creators and rights holders.

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

The Government recognises that there is an increasing use of AI tools and other forms of technical innovation by the creative industries in their creative process, including in the creation and distribution of digital content.

The Government believes that copyright laws must protect the UK’s position as a creative powerhouse while unlocking the extraordinary potential of AI-driven innovation to grow the economy and improve British lives. The Government published a Report and Impact Assessment on AI and copyright on 18 March, outlining the steps it is taking to move us forward in this area.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the increasing use of AI-driven personalised marketing by large retailers; and what steps they are taking to ensure that regulatory frameworks relating to consumer protection, data use and competition remain effective.

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

The Government recognises the importance of ensuring that regulation keeps pace with new technologies.

In 2025, Government implemented the Digital Markets, Competition and Consumers Act 2024 to strengthen the competition and consumer regimes and establish a bespoke regime for digital markets, which will ensure the most powerful technology firms treat businesses and consumers fairly. It also strengthened the Competition and Market Authority's consumer enforcement powers, empowering the CMA and courts to impose significant monetary penalties of up to 10% of turnover.

Where storage and access technologies, such as cookies, are used in personalised marketing, the user must be provided clear and comprehensive information about the purpose of such technology and consent to its use. Any personal data used in personalised marketing must follow the rules and principles of the GDPR. The Information Commissioner’s Office is responsible for enforcement.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of investment in AI technologies on productivity growth in the UK; and what steps they are taking to support the adoption of AI across the economy.

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

The OECD estimates that widespread AI adoption could boost UK productivity by 0.4-1.3 percentage points annually through automation and augmentation, potentially adding £55-140bn in GVA by 2030. That combined with the opportunities this technology brings for people is why we have set the ambition to make the UK the country with the fastest rate of AI adoption in the G7.

DSIT's Secretary of State and the Chancellor have made it clear that accelerating AI adoption is a key priority for this government. We will soon host the AI Adoption Summit, to support industry to adopt and scale AI to help workers and grow their businesses. This will complement existing activity across DSIT designed to support business AI adoption, such as our AI and digital upskilling programmes, dedicated guidance and support for SMEs through Innovate UK’s BridgeAI programme, and the AI Growth Lab, a cross-economy AI sandbox which will enable responsible AI products and services to be deployed under close supervision in live markets.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the UK’s performance, relative to global peers, in translating AI innovation into commercial and economic outcomes; and what steps they are taking to support competitiveness, scale-up growth and technology adoption in this area.

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

We have a strong and globally competitive AI ecosystem, and we are focused on ensuring that this strength translates into commercial success, productivity gains and public benefit.

We have established the Sovereign AI Unit, backed by up to £500 million, to invest in and support high-growth UK AI companies. The Government will encourage innovation by acting as a first customer for promising UK start-ups that are building high-quality AI hardware products through an Advance Market Commitment of up £100 million. We are also strengthening the UK’s scale-up finance ecosystem more broadly, including increasing the capitalisation of the National Wealth Fund to £27.8 billion and scaling up the British Business Bank to £25.6 billion, with expanded investment into growth-stage funds.

We are committed to ensuring the UK is the leading adopter of AI in the G7, and the Government will look at how regulation, data and access to finance can support adoption including by working closely with sectoral AI Champions to identify new solutions. DSIT will track the UK's progress by using national and international adoption surveys, applying adjustments where needed to improve cross-country comparability.