New UK Prime Minister Andy Burnham has moved swiftly to reshape the government's technology apparatus, shutting down the Department for Science, Innovation and Technology (DSIT) and folding most of its remit into a new business super-department. At the same time, Burnham has named Kanishka Narayan as the UK's first dedicated AI Minister — a move that has drawn a mixed, often skeptical, response from the tech sector.
A Departmental Shake-Up
Delivering on his promise of a "pro-business" administration, Burnham has handed former business secretary Jonathan Reynolds leadership of the newly created Department for Business, Innovation, Science and Trade. Other DSIT responsibilities have shifted to a renamed Department for Digital, Culture, Media and Sport, led by Lisa Nandy.
DSIT, originally formed in 2023 under former PM Rishi Sunak, had backed research programmes spanning quantum computing and clean energy, and had designated dedicated data centre zones — including a now-paused campus project involving OpenAI and Nscale.
"DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department"— Julian Harris, Chief Executive, techUK, and Dom Hallas, Executive Director, Startup Coalition (joint letter)
Industry Backlash
The reaction from the tech sector has been sharp, with many warning the restructuring risks unsettling an industry valued at £1.2tn ($1.6tn) and growing at 10% a year. James Cobb, CEO and Founder of location intelligence company Crowd Connected, argued that appointing a minister without a supporting department amounts to little more than symbolism.
Charlotte Wilson, Head of Enterprise at Check Point, echoed the concern, framing the UK's AI apparatus as central to both economic growth and national security. Not everyone views the reshuffle negatively, however — Tim Flagg, CEO of trade association UKAI, suggested it could even signal an ambition to elevate AI further within government, provided the transition happens quickly.
"You don't show you take AI seriously by appointing a minister while scrapping the department that understood it"— James Cobb, CEO and Founder, Crowd Connected
The UK's First AI Minister
Despite dismantling DSIT, Burnham has appointed Kanishka Narayan as the UK's first dedicated AI Minister. Narayan previously served as Minister for AI and Online Safety from September 2025 under former PM Keir Starmer, working under then-technology secretary Liz Kendall.
Narayan pledged to act "with pace" and "with ambition" to secure Britain's influence in shaping AI, framing the current moment as a narrow window for nations to decide whether they shape the technology or are shaped by it. The UK joins France and Canada among G7 nations to have created a senior AI-focused government position.