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UK ministers criticized for prioritizing Big Tech interests over public welfare in AI spending

September 3, 2026
2 mins read
UK ministers criticized for prioritizing Big Tech interests over public welfare in AI spending

Concerns over government spending on AI technology

Ministers are putting the interests of Big Tech ahead of the public by spending billions on AI and not being transparent about its use, reports BritPanorama.

The UK public sector has awarded more than 2,000 contracts for AI-related projects since 2018, totalling around £5 billion of potential spending, according to analysis by consultancy Tussell.

While this cutting-edge technology has the ability to bring significant advantages in areas such as health, campaigners and MPs have warned that the government’s adoption of AI lacks transparency and accountability.

Jim Killock, executive director of the Open Rights Group, stated that reports of efficiencies gained from AI remain largely unproven, with the public “kept in the dark about how systems affect them.”

The Home Office is investing hundreds of thousands of pounds to introduce AI facial age estimation technology at the UK border, which has raised concerns regarding its implementation, particularly in relation to migrants.

The government is also using AI to make decisions about policing, housing, Universal Credit, and asylum claims. The Department for Work and Pensions (DWP) has employed machine learning to flag potentially fraudulent benefit claims; however, older claimants and non-UK nationals were reportedly being over-referred for reviews, as indicated by the National Audit Office.

In a notable instance, NHS England has faced scrutiny for a £330 million contract with US firm Palantir, aimed at linking patient data across different locations. Recently, London Mayor Sadiq Khan blocked a separate £50 million deal between the Met Police and Palantir due to concerns about how the contract was awarded.

The Open Rights Group released a new paper on Thursday, arguing that government partnerships with private companies could lead to abuses of power.

Liberal Democrat MP Victoria Collins, who contributed a foreword to the report, emphasized that the “burden of identifying and challenging harmful AI systems must not fall to individual members of the public,” asserting that the responsibility lies with both the government and the industry.

Dr. Allison Gardner, Labour MP for Stoke-on-Trent South, underscored that while AI could benefit society — particularly in health — it also has the potential to perpetuate inequality and harm. “Clear regulation is vital so that the public can trust these technologies, particularly when used by the state in ways that affect their lives,” she stated.

The report calls for ministers to conduct impact assessments of the AI systems in use before their rollout and proposes regular audits by experts on the algorithms employed.

Killock reiterated, “The government is prioritising Big Tech over the British public in spending billions on AI systems, which it claims will create efficiencies. There are no effective rules to ensure these systems respect human rights. The public is kept in the dark about how systems affect them. We urgently need AI regulation prioritising transparency, accountability, and the public interest.”

A government spokesperson responded by stating, “We are actively shaping the UK AI market using grants, investments, and contracts to support British capability and competition. Through our new £100 million Sovereign AI R&D Procurement Scheme, we are helping British AI companies tackle some of the country’s biggest challenges, improve public services, and compete globally. We publish information explaining how and why algorithmic tools are used and have developed clear frameworks to ensure AI is used safely and responsibly across government, with people remaining in control of final decisions.”

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