Director Weekly How can the government help UK businesses seize the opportunities and mitigate the risks created by AI?
Understanding how the UK government can support the responsible mainstreaming of AI in business will be the focus of two panel discussions hosted by the IoD at the Labour and Conservative party conferences in the coming weeks.
Bringing together technology experts and politicians from each party, the discussions will build on our Policy Voice research on AI, which has found that 49% of directors report their organisation is using AI in some form. The upside is clear: 47% recognise it could boost productivity, for starters.
Yet our survey also revealed uncertainty, scepticism, and significant barriers to adoption that are holding the UK back from seizing the potential benefits.
Here are four of the key issues that politicians and policymakers should be thinking about.
1. Leaders lack understanding of AI
One of the major barriers to AI adoption is a lack of understanding among senior leaders and boards about how AI models work.
For many executives, building a practical understanding of how AI could benefit their business takes time. Yet directors are stretched thin as they confront other urgent challenges – some of which, unfortunately, have been exacerbated by the government, including regulatory complexity and rising costs.
A pro-business shift in policy would help create an environment where it becomes more realistic for leaders to explore AI opportunities.
2. Businesses do not have a structured focus on AI and digital skills
Our Policy Voice research has also shown that developing AI and digital skills is not yet a structured priority for most organisations. Barriers to upskilling include cost, capacity, and dissatisfaction with existing training offers. Again, the wider environment isn’t helping: business investment in skills is under pressure as other costs soar.
What can policymakers do? Refocus on providing practical pathways and funding that encourage companies to train staff at all levels, where relevant, on implementing and using frontier technologies.
3. Governance needs to evolve for the AI era
Another concern for directors surrounds governance. Generative AI throws up complex questions around ethics, fairness, risk, and companies’ legal obligations: the government has a key role in helping to provide clarity on these issues.
4. Delivery on the AI Opportunities Action Plan is essential
The government’s AI Opportunities Action Plan, published in January 2025, was a welcome shift of emphasis in how the UK government approaches AI, putting the focus on innovation, in addition to safety concerns.
Yet implementation is dragging. The Action Plan offers 50 recommendations: has the government’s focus been spread too widely? Refocusing on a smaller number of priorities and on delivering well would be welcome.
An emphasis on maximising the UK’s existing strengths, and clearer timelines for policy delivery, would help build confidence about the way forward.
Will you be at Labour or Conservative party conferences? Join us to explore what business needs from government at the IoD’s panel discussions.
Labour party conference
- Tuesday 30 September – 08:45-10:00
- Arena Room 3, Connect Hub – The ACC Liverpool (secure zone)
With:
- Kanishka Narayan MP – Parliamentary Under-Secretary of State in the Department for Science, Innovation and Technology
- Dr Erin Young – Head of Innovation and Technology Policy, IoD
- Tim Flagg – Chief Executive, UKAI
- Dan Howl – Head of Policy & Public Affairs, BCS, The Chartered Institute for IT
Conservative party conference
- Monday 6 October – 13:30-14:30
- Exchange 1, Manchester Central
With:
- Dr Ben Spencer MP – Shadow Science, Innovation and Technology Minister
- Alison Griffiths MP – PPS to the Shadow Business and Trade Team Dr Erin Young – Head of Innovation and Technology Policy, the IoD
- Alice Campbell – Head of Public Affairs, techUK
About the author
Dr. Erin Young leads the IoD’s policy, strategy and thought leadership work on technology, science and innovation.
Before joining the IoD, Erin was Project Co-Lead and Research Fellow in Public Policy at The Alan Turing Institute, the UK’s National Institute for Data Science and AI, where her work influenced the UK’s National AI Strategy and AI Opportunities Action Plan. Previously, Erin held positions at the United Nations (UN IIEP-UNESCO) in Paris, Kantar/WPP in London, MediaX at Stanford University, and Thomson Reuters in New York City, across policy, strategic communications, research, stakeholder engagement and government affairs.
Erin sits on the Strategy Steering Board for the City of London Corporation’s Women Pivoting to Digital Taskforce, the Advisory Board for the APPG on Entrepreneurship, and advises the Hg Foundation on AI, skills and inequalities. She is frequently featured in high-profile media and presents across business and government including the European Parliament, GCHQ, KKR and the UK Science and Technology Network (FCDO/DSIT) at British Embassies and Consulates globally.
Erin holds a BA in Classics from the University of Cambridge, an MSc (Distinction) in Education (Learning and Technology) from the University of Oxford, a PGC in International Business Practice, Finance and Organisational Behaviour from St Mary’s University, and a Ph.D. (D.Phil) in Science and Technology Studies (STS) from the University of Oxford.
Director Magazine
This article is published as part of IoD Director, the authoritative voice of UK business leadership.
Get updates from Director
There has been an unexpected error.
Thank you for subscribing.
Unsubscribe at any time. Read our privacy policy.
