Societal Impact of AI: Government Policy

Jim Shannon Excerpts

Wednesday 8th July 2026 Westminster Hall

[Neil Duncan-Jordan]

I absolutely agree with my hon. Friend’s point about no place being left behind as a result of the AI revolution. I will develop that point a later. We can already see the first signs of AI impacting on work here. We have record numbers of young people not in employment, education or training because many entry-level jobs have disappeared.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. I spoke to him beforehand; he knows where I am coming from. My concern is for the young people of today looking for the jobs of tomorrow. My grandchildren will have to prepare themselves. We must try to equip young people. In the last few days the Belfast Telegraph reported that this may be the first time in a century that young people have lower scores in tests for memory, focus and reading than their parents. Is it not time for the Government to acknowledge the challenges and ensure that there are employment prospects for young people? If the hon. Gentleman’s objective is that, it is the right way to go.

[Neil Duncan-Jordan]

Yes, young people and their employment prospects are intrinsically linked to the debate about the future of AI. The hon. Gentleman is right that we have to get that right for those people to have a future.

We also need the Government to introduce a raft of measures to manage AI-driven changes to work. Those measures should include an employment levy on companies that replace large numbers of workers with AI, training subsidies for displaced workers, redeployment programmes to move workers into sectors with skills shortages, and a job subsidy scheme for workers and companies at the sharp end of industrial change, along with, of course, stronger social security support for those who face unemployment.

We know that if it is left to the market, firms will often reach for the crudest form of automation, stripping out roles and degrading the work that remains. The alternative is that we start to advance the case for dignified work, and recognise that that will mean having meaningful worker involvement in every step of the process. The involvement of workers in adoption is often what turns a promising tool into a productive one. That is why I agree with the TUC that the Government should strengthen the Employment Rights Act 2025 to give workers a real say in decisions. There should be a duty on employers to disclose their use of AI, and a right for the workforce to be consulted and negotiate over how AI is introduced.

One of the biggest challenges of AI is to ensure that everyone gets a fair share of the gains. The AI and big tech corporations in the US stand shortly to become some of the wealthiest and most powerful private actors in history. Their wealth has been built on public research and public investment, as well as all our shared written inheritance, which has trained the models they use.

The fact that our tax system taxes income from work far more heavily than income from capital gives firms a direct tax incentive to automate a worker out of a job rather than employing them, and could see AI facilitate a further shift of national income away from labour and towards capital, eroding the tax base that funds the public services that we all need and want.

[Jim Shannon]

The hon. Gentleman is focusing on employment and big tech companies; does he agree that we need to go a step back—back to school, teachers and training? Teachers need to prepare their pupils for the future with AI, and for what that means. Does the hon. Gentleman feel that that is something not for this Minister but perhaps for a Minister in another Department?

[Neil Duncan-Jordan]

I thank the hon. Gentleman for his second intervention—let us see whether he can make it a hat trick before I finish. The reality is that AI is here now. We have to deal with how it impacts on today’s workers and future workers as well. This is not one generation against another, and I know the hon. Gentleman understands that.

The Government could seek to equalise tax treatment, actively explore widening the digital services tax to include AI companies, which it currently excludes, and raise the level of the tax from 2% to the European average. We cannot allow the use of machines to be made artificially cheaper than employing people.

It is important to look at AI sovereignty, which the hon. Member for Dewsbury and Batley (Iqbal Mohamed) mentioned earlier. The UK is growing increasingly dependent on US tech, and owns little of the data infrastructure and AI models on which the future economy will increasingly rely. This repeats the pattern of recent decades in other sectors, whereby essential national infrastructure has passed into overseas ownership and money has flowed offshore, leaving British people with less and less control over the essentials of a good life. That dependence not only creates security risks, as has been mentioned, but prevents the UK from capturing and distributing any AI windfall.

We need to give UK companies a meaningful chance to compete. The Competition and Markets Authority could use existing powers to take on the concentration in the cloud market, which underpins the AI companies’ business models. A progressive sovereign AI programme should involve an industrial strategy that seeks to expand public investment in the sector and impose strict conditions on private access to public assets, alongside active support for models such as co-operatives, public interest companies and other democratic ownership models, so that the gains of AI can be captured and shared throughout the UK.

At the heart of this debate is the role of the public. Big decisions about AI, such as where data centres are built and how AI is deployed in public services, are being taken with little democratic input.