Burnham Scraps DSIT But Names First UK AI Minister

New UK Prime Minister Andy Burnham has shut down the government’s Department for Science, Innovation and Technology (DSIT), merging most of its responsibilities into the business department.

Delivering on the new PM’s promise of a “pro-business” administration, former business secretary Jonathan Reynolds will lead the newly created Department for Business, Innovation, Science and Trade. 

Other responsibilities of DSIT have moved to the Department for Culture, Media and Sport – which is being renamed as the Department for Digital, Culture, Media and Sport – led by Lisa Nandy.

The move comes despite strong pushback from technology entrepreneurs and industry leaders who urged the government to keep DSIT intact.

Julian Harris, Chief Executive of techUK, and Dom Hallas, Executive Director at Startup Coalition, sent a joint letter to the PM calling the proposal “the wrong change at the wrong time”.

“DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department – a single front door that gives the tech sector clarity, pace and a government partner that understands technology and champions the sector in the Cabinet,” they wrote.

“Breaking up the work of DSIT endeavours such as the world-leading AI Safety Institute, the Sovereign AI fund, GDS and UKRI would slow momentum at a time when pace is essential for both the growth of the economy and our standing on the global stage.”

DSIT was originally formed in 2023 by former Conservative leader and PM Rishi Sunak.

Since its inception, the department has backed research programmes in quantum computing and clean energy, while designating dedicated zones for data centres, including a major campus project from OpenAI and Nscale, which was halted by OpenAI earlier this year.

Industry backlash

The tech sector’s immediate reaction to the dissolution has been sharp, with many warning that breaking up the department sends a worrying signal to an industry valued at £1.2tn ($1.6tn) that is currently growing at 10% a year.

“You don’t show you take AI seriously by appointing a minister while scrapping the department that understood it,” says James Cobb, CEO and Founder of UK location intelligence company Crowd Connected.

“A Minister for AI is welcome, but a minister without a department is simply a spokesperson. 

“AI bolted onto a traditional organisation delivers very little. Appointing an AI minister while dissolving the department that understands the technology is a step backwards, not forwards.”

Charlotte Wilson, Head of Enterprise at Check Point, echoes these concerns, highlighting the national security and economic stakes involved.

“Britain’s AI department is at the forefront of the country’s productivity strategy, playing a crucial role in how the technology will be developed and rolled out to drive wider economic growth and defence,” she notes. 

“Incoming policymakers should take heed – AI is the gorilla in the room and will remain so for the foreseeable future.

“Any suggestion of redeployment or downsizing could send the wrong signal to businesses and cyber criminals about how seriously we take the most transformational technology in living memory.”

However, some in the industry view the reshuffle as a potential opportunity, if executed quickly.

“AI has the potential to transform Britain’s economy, our public services and our security for a generation,” says Tim Flagg, CEO of trade association UKAI.

“Rethinking which department oversees this industry does not necessarily mean Burnham’s Britain is turning its back on that potential. 

“It could even signal an ambition to go further: AI elevated into a super-department or placed at the very heart of the Cabinet Office. The real danger isn’t the ambition – it’s the distraction and the delay.”

The UK’s First AI Minister

Despite dismantling DSIT, Burnham has appointed Kanishka Narayan as the UK’s first dedicated AI Minister.

The MP was previously appointed as Minister for AI and Online Safety in September 2025 under Burnham’s predecessor Keir Starmer, serving under Liz Kendall, who held the position of technology secretary until yesterday.

“AI is likely the most significant technology in human history,” Narayan wrote on X following his appointment.

“Its impact will dwarf other things. Nations have a narrow window to decide whether they shape AI or get shaped by it.

“Britain is in that window right now. While that window is still open, I will act with pace, I will act with ambition, and I will focus relentlessly on securing British influence in shaping AI.”

While France and Canada have both created senior AI government positions in recent years  – meaning Britain is not the first G7 country to introduce a top-level minister for the tech – Narayan faces a complex landscape at home.

A widening AI confidence gap

The restructuring comes at a delicate moment for tech adoption across the UK economy. 

According to recent research from engineering and technology consulting firm Expleo, a widening AI confidence gap is emerging among UK business leaders.

Nearly a third of business leaders report that losing their current AI tools today would leave their work completely unaffected. And only 24% believe their tasks would become more complex without AI, suggesting current tools are doing little to alleviate work pressure or operational friction.

Beyond adoption, industry leaders worry the governmental shake-up will stall urgent policy work.

“Technology, one of the UK’s priority sectors, is vital to economic growth,” adds Tony Kounnis, CEO of Face Int UK & Europe, a tech startup specialising in identity verification. 

“Any delays to sector investment and policy development caused by the redistribution of DSIT’s responsibilities could be costly.”

Tony points specifically to pressingly needed frameworks around emerging technology. 

“With a change in leadership, it’s important that any departmental changes don’t cause further disruption to much-needed progress where the regulation of facial recognition technology (FRT) is concerned.

“As FRT becomes more widely used by police and businesses, the public has also been voicing concerns around excessive surveillance and what it means for their privacy.”