I thank my noble friend for highlighting the many challenges faced by SMEs. The Government are actively supporting SMEs in adopting AI through Innovate UK’s flagship programme, BridgeAI. This initiative targets sectors with low AI adoption but with high growth potential, including construction, transport, logistics, warehousing, agriculture and the creative industries. BridgeAI provides SMEs with funding, expert advice and support to address technical and commercial skills gaps. To build trust, we have also published the AI management essentials, which help SMEs assess and strengthen their AI governance. This guidance is being updated to better meet industry needs and will serve as a practical tool for responsible AI adoption.
The Communications and Digital Select Committee, in its report on media literacy, said:
“Ofcom is not the appropriate body to coordinate or deliver a nationwide media literacy programme”.
It pointed out that
“the Government has failed to fill”
the “leadership vacuum” in this area. What are the Government going to do about that?
I thank the noble Viscount for that. At the end of the day, the fact is that AI is now central to the UK’s growth strategy. The results are very clear: UK AI companies deliver some £11.8 billion in gross value added, revenues are up 68% and over 86,000 people now work in the sector.
As for the question itself, the point here is that we need to address the skills gap. AI is already changing the way we work, and we need to support everyone in this country in adopting AI skills. We also need a plan to tackle market challenges and ensure that people right across the UK are ready for the future.
My Lords, the Online Safety Act places very clear duties on platforms to protect children, including tackling methods of circumvention. The use of VPNs to bypass safeguards is a known risk, and platforms must act decisively. They are already required to assess such risks and implement proportionate measures. Ofcom will hold platforms to account. The Act requires Ofcom to produce and publish a report assessing how effective the use of age assurance has been and whether there are factors that prevented or hindered the effective use of age assurance. These will be published by June 2026.
My Lords, will the Minister support calls for app stores not to provide VPNs to children in this country?
My Lords, many people use VPNs for entirely legitimate purposes. Their use does not negate the protections of the Online Safety Act, particularly when it comes to keeping children safe online. We have seen a significant increase in the use of age-verification tools as UK users attempt to access age-restricted content. Since the child safety duties came into force, the Age Verification Providers Association has reported an additional 5 million age checks being carried out each day in the initial period. The Act is already driving real change and stronger protections for children.