Labour government pivots AI strategy to prioritise workforce retraining and youth skills

Technology Secretary Liz Kendall has outlined the Labour government’s strategy to ensure artificial intelligence benefits workers, specifically those displaced by automation. Speaking ahead of London Tech Week, Kendall asserted that the government would actively shape AI adoption to support people whose jobs are swept away by rapid technological advances. She emphasised that the administration’s approach would focus on helping individuals through job transitions, contrasting this with what she described as the previous government’s passive stance.

To operationalise this policy, the government has adjusted the £187m TechFirst AI training scheme to direct 40% of its resources toward disadvantaged schools. The initiative aims to reach one million children, with a specific focus on ensuring that those in the most disadvantaged areas receive adequate opportunities. Kendall stated that the goal is to ensure that people and places most in need of a decent chance at life are provided with the choices and opportunities that AI growth can offer.

In parallel with the training scheme adjustments, the government is launching pilot summer skills camps in the north-east and north-west of England. These programmes are designed for young people not in education, employment, or training, or those at risk of becoming so. The north-west scheme will offer 60 places, while the north-east scheme will provide 20 places, with both delivered in collaboration with businesses to facilitate apprenticeships. The north-east initiative is funded by Labour’s Youth Guarantee, which supports young people who have been out of work for 18 months or more.

Addressing broader concerns about the impact of AI on the labour market, Kendall acknowledged that while some roles would disappear, new jobs would be created and existing ones would change. She cited warnings from International Monetary Fund managing director Kristalina Georgieva regarding the potential for AI to significantly affect the labour market, particularly for young people. However, Kendall maintained that the government’s role is to ensure that the benefits of AI are distributed fairly and that the technology enhances work rather than undermining it.

The government is also expanding its consultation on online safety for children under 16 to include AI chatbots and gaming features, alongside potential social media bans. Kendall clarified that the consultation covers a wider range of issues than just social media, including 'stranger pairing' in video games and age-verification measures. Regarding the NHS’s contract with US tech firm Palantir, Kendall confirmed that the decision on whether to invoke a break clause rests with Health Secretary James Murray, while reiterating the importance of NHS digitisation and support for British AI companies.