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Viral Trending content > Blog > Business > OpenAI and UK government strike deal to boost public services and economy
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OpenAI and UK government strike deal to boost public services and economy

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UK government plans AI-powered public servicesNew investment, jobs, and security focus

OpenAI ChatGPT. Credit: Sanket Mishra, Pexels

The UK Government and OpenAI have signed a strategic partnership to accelerate artificial intelligence adoption across the country, aiming to drive economic growth and improve public services.

The agreement, announced July 22, 2025, formalises collaboration between OpenAI and the UK’s Department for Science, Innovation and Technology through a new Memorandum of Understanding (MOU).

The deal supports the UK’s AI Opportunities Action Plan, with shared goals to build sovereign AI infrastructure, create high-skilled jobs, and integrate AI into both public and private sectors. According to OpenAI, Britain is already one of the company’s top three global markets for paid subscribers and API developers.

“AI is a core technology for nation building that will transform economies and deliver growth,” said OpenAI CEO Sam Altman. “Britain has a strong legacy of scientific leadership… Now, it’s time to deliver on the plan’s goals by turning ambition to action and delivering prosperity for all.” (OpenAI press release)

UK government plans AI-powered public services

Under the MOU, OpenAI and the UK Government will explore how advanced AI tools can be used in public services – from helping small businesses navigate GOV.UK to supporting civil servants with AI assistants like “Humphrey.”

Tools already powered by OpenAI’s API include:

  • AI chatbot for small business advice via GOV.UK
  • Humphrey, a Whitehall assistant designed to cut civil service admin
  • Consult, which speeds up policymaking by analysing consultation responses in minutes

UK Technology Secretary Peter Kyle said the collaboration will ensure Britain remains “front and centre” in AI innovation.

“This partnership will see more of [OpenAI’s] work taking place in the UK, creating high-paid tech jobs, driving investment in infrastructure, and crucially giving our country agency over how this world-changing technology moves forward,” Kyle said.

New investment, jobs, and security focus

The partnership builds on existing work between OpenAI and the UK AI Safety Institute. They will now co-develop a technical information-sharing programme to boost the government’s understanding of AI model capabilities and explore security research.

OpenAI also confirmed plans to expand its London office, its first international base, which opened in 2023 and now employs over 100 staff in roles including research, engineering, and go-to-market support.

The deal’s broader goals include:

  • Strengthening UK’s sovereign AI infrastructure
  • Supporting small businesses and public sector staff
  • Deepening AI safety and technical knowledge within government

Let us know what you think. Should AI tools become a core part of UK government?

View all technology news.

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