The new Secretary of State for Business and Trade, Peter Kyle MP, has vowed to leverage AI and accelerate deregulation as central pillars of the government's strategy to restart economic growth.
Addressing more than 200 technology and business leaders at the UKAI conference at the University of Sussex, Kyle drew parallels between government and corporate leadership and argued that Britain should “find a way out of the crisis” rather than relying on austerity or caution.
“Look at Apple when they rehired Steve Jobs,” he told delegates. “They were 90 days from bankruptcy – and they didn't sit back and say what they couldn't do. They threw everything into it. That's the approach we need now.”
In one of his first major speeches after joining Cabinet, Kyle promised to make artificial intelligence a driver of productivity, job creation and investment while promising to cut red tape for small and medium-sized enterprises.
He highlighted an 11 percent increase in R&D investment since Labor came to power and promised to expand innovation funding through partnerships with universities, start-ups and the private sector.
“The UK is home to world-class researchers, entrepreneurs and engineers,” Kyle said. “Our job is to make sure regulation works for them – not against them.”
The announcement received strong support from industry leaders attending the conference.
Kenny McAuley, CEO of the Acting Office, said: “With financial services playing such a vital role in driving UK growth, it is reassuring to hear the Secretary of State supporting AI and technology as an engine of business growth.
The deregulation, tech-first approach will help excite the next generation of entrepreneurs, create jobs, spread wealth and improve lives.
Lee Beard, national security and defense expert at Check Point Software, welcomed the government's adoption of AI, but warned that cybersecurity must underpin progress: “AI is a powerful catalyst for innovation, but we are seeing it increasingly used by both defenders and adversaries – increasing the risks.
For public services and critical infrastructure, security must be proactive, not reactive. Cyber resilience should not become a brake on progress; “It is the foundation of safe, sustainable innovation.”
Kyle acknowledged that as AI adoption accelerates, digital security and ethical standards must evolve in parallel. He reiterated the government's commitment to building secure, transparent AI systems that maintain public trust while driving commercial value.
Industry observers say the speech signals a renewed industrial strategy built on innovation, investment and intelligent regulation – an approach that could define the government's economic story for next year's spending review.
Amy Ingham
Amy is a newly qualified journalist specializing in business journalism with responsibility for news content at Business Matters, the UK's largest print and online source of current business news.
