The physical layer Whitehall forgot

Good morning,

I'm celebrating Friday with a break from politics. Ben Peters, CEO of startup Cogna, which builds software for critical industries, tells us about applying AI to areas like utilities and manufacturing and explains why regulation right now isn't the answer, but speed and procurement are.

Happening Today 📆

Not a lot, so here's our webinar from yesterday on DSIT's dissolution for those who couldn't make it. A summary of the key points is below👇.

Demotion: Former SpAd Tom Skinner warned the DSIT reorganisation diluted ministerial power, with the AI minister now sitting below a Secretary of State as "first mate". He argued a unified tech department was essential because AI, quantum and semiconductors are converging technologies.

Diluted: He said that while D-BIST will be more powerful than DSIT, its influence is "diluted" by a broader agenda. Skinner flagged teams like the Sovereign AI Unit would have to compete against more politically charged issues like steel and water nationalisation. The Startup Coalition’s Dom Hallas made a similar point but said there were potential logistical benefits, such as business finance, UKRI and the British Business Bank being in the same department. 

Not all bad: Maeve Walsh, director of the Online Safety Act Network, argued the old DSIT model failed civil society. It acted as a "single front door" for industry but was "effectively closed" to child safety, fraud and mental health advocates, she claimed. That in turn pushed online harms issues onto the Home Office, MoJ and Department of Health. She viewed online safety's shift back to DCMS as an opportunity for a reset.

Future fears: Hallas acknowledged the new business department’s early reassurances, but warned that DSIT provided a "forward-looking counterbalance" to incumbent interests which could be lost. He said the Startup Coalition is making procurement its central campaign over the next 12-24 months.