Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Thursday 24 July 2025 7:00 am  |  Updated:  Thursday 24 July 2025 7:34 am

Labour’s OpenAI deal lacks transparency

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
OpenAI chief executive Sam Altman emphasised the Stargate project’s significance.

The Labour government’s newly announced partnership with OpenAI has positioned the UK at the centre of a global discourse on the future of artificial intelligence in public services.

The memorandum of understanding (MoU), signed on Tuesday by tech secretary Peter Kyle and OpenAI chief Sam Altman, sets out a framework for collaboration across sectors like healthcare, education and national security.

Supporters in government have positioned the move as a sign of intent; a sign that Labour aims to make the UK a global hub for innovation, and isn’t afraid to work directly with Big Tech to explore digital transformation at scale.

Officials claim the agreement will accelerate the responsible deployment of generative AI in public services, particularly as the country faces pressure to boost productivity and improve service delivery.

Yet the MoU, which is both non-binding and contains no legal enforcement mechanism, has drawn criticism from academics, MPs, and digital rights campaigners alike, who say the government has released few details about how the partnership will work in practice.

Chi Onwurah, Labour MP and chair of the House of Commons Science and Technology Committee, described the agreement as “very thin on detail”, urging the government to clarify commitments around public data and accountability.

Civil-liberties and digital rights groups have echoed these concerns, warning the MoU may move “too fast without democratic input”.

They point out the absence of binding procurement processes or performance metrics, flagging a potential bypass of independent oversight structures like the AI Safety Institute.

Pressure to innovate, yet regulation remains light

The UK government has resisted more prescriptive regulation, positioning its approach as self-described “pro-innovation”, compared with the EU’s binding AI act and the US’s voluntary regime.

Read more

OpenAI files to go public as the race between tech giants heats up 

Sam Altman discussing OpenAIs ChatGPT advancements at a press conference, emphasizing AI innovation and future developments

Tech secretary Peter Kyle has argued that Britain must remain “nimble”, supporting “safe deployment” of frontier AI without bureaucratic inertia.

James Fisher, chief strategy officer at Qlik, welcomed the move, arguing that the agreement signals the UK is “open for AI”. However, he cautioned that success hinges on robust, real-time data infrastructure.

Meanwhile, others agree that skilled, AI-literate public servants are also key for successful implementation.

But scepticism persists. UCL’s Wayne Holmes said: “It’s just utter, utter drivel and neoliberal nonsense”, and warned that policy makers were succumbing to the AI hype – calling the MoU “crazy”.

Holmes emphasised the urgent need for proactive regulation and public understanding of AI’s limitations.

Supporters argue that this early-stage agreement is a prudent step in an evolving strategy, and note that the government has stressed the MoU does not confer access to public data sets, while future procurement would adhere to existing data protection laws.

As international counterparts move to introduce stricter regulations and oversight, the UK’s “light-touch” strategy may come under increasing scrutiny.

With Labour stating that it will provide more detail in due course, attention now turns to whether the government can back its ambitions with enforcement safeguards and transparent procurement – ensuring that promises of AI-enabled innovation do not outpace public confidence.

Read more

Liz Kendall hails ‘Brit-maxxing’ as Labour bets £1.1bn on AI chip race

Work and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Tech
  • Business

People & Organisations

  • artifical intelligence
  • big tech
  • innovation
  • Labour
  • OpenAI
  • Peter Kyle
  • Sam Altman
  • UK tech

Trending Articles

  • Revealed: Secret Treasury plan to tax State Pension before it is paid out

  • Burnham’s new chief of staff ran City firm advising Thames Water and rival Heathrow bidder

  • Two solicitors linked to Post Office scandal charged with misconduct

  • Barclays and Lloyds join banking sector plan for digital ID

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

More from City PM

  • OpenAI files to go public as the race between tech giants heats up 

    Investing
    Sam Altman discussing OpenAIs ChatGPT advancements at a press conference, emphasizing AI innovation and future developments
  • Liz Kendall hails ‘Brit-maxxing’ as Labour bets £1.1bn on AI chip race

    Tech
    Work and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system
  • British pensions are about to bankroll the American tech revolution

    Opinion
    SpaceX Falcon 9 rocket launching into a clear sky during May 2026 mission, showcasing advanced aerospace technology
  • Google taps markets for $30bn AI cash call

    Tech
    Googles modern Kings Cross headquarters showcasing innovative architecture in Londons dynamic tech district
  • Former KPMG chief joins £10m funding round for AI-powered audit challenger

    AI
    Cortea founders Valentin Neumann and Phillipp Hovelmann standing together, with Neumann on the left and Hovelmann on the r...
  • SpaceX lands record $75bn raise as Wall Street braces for mega debut

    Tech
    Tech billionaire Elon Musk has been asked to serve in Donald Trump’s cabinet. (Photo by Apu Gomes/Getty Images)
  • Consulting giants face up to AI-reckoning

    Consulting
    NYSE trading floor bustling with activity as traders monitor market trends and stock performance on electronic displays
  • As it happened: FTSE 100 scrapes into green after Segro’s surge; Oil at pre-war levels after Trump snaps at industry

    Markets
    Techbehemoth and OpenAI yesterday struck a multi-billion-dollar partnership with chipmaker AMD

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM. All rights reserved.
About · Contact · Terms · Privacy