While the £2 billion consumer deal made headlines, the real UK AI plan lies in the transformation of its public services. The Memorandum of Understanding with OpenAI, not the scrapped subscription idea, is the true heart of the government’s current strategy.
This pact, signed in July, is focused on the practical application of AI within the machinery of the state. The goal is to use the technology to make government services in areas like healthcare, education, and transport more efficient, responsive, and effective for the British public.
Unlike the splashy but costly national subscription, this public service plan is incremental and targeted. It allows the government to test AI in controlled environments, measure its impact, and scale up successful applications without a massive upfront investment.
The talks between Peter Kyle and Sam Altman may have started with grand, public-facing ideas, but they have matured into a more grounded strategy focused on internal government reform. The ultimate goal is that citizens will feel the benefit of AI not through a personal subscription, but through better, faster, and smarter public services.