Burnham's Big AI Moves + Cambridge AI Startup Hits £2bn Valuation
Matt, and
Niels
Just days into his premiership, Andy Burnham abolished the three-year-old Department for Science, Innovation and Technology. At the same time, he elevated AI minister Kanishka Narayan to cabinet and appointed government heavyweight Lord Vallance as chair of the AI task force. So what does this mean for AI policy in the UK? And who is responsible for what?
Meanwhile, Cusp AI raised £334 million at a £1.9 billion valuation, with Jeff Bezos and the UK Sovereign AI Fund (fresh from being relocated from DSIT to the government's new business department) both at the table. Is this evidence that the UK's push for "applied AI" could be paying dividends?
Quick Hits
CMA opens investigation into Microsoft Copilot subscriptions — The competition regulator is examining whether Microsoft clearly explained price increases when Copilot was added to 365 plans. Read more
Freenow and Baidu begin autonomous vehicle testing in London — Apollo Go robotaxis are now on London roads in Brent, with a commercial launch targeted for 2027. Read more
Judge suggests Home Office used AI-hallucinated evidence in asylum refusal — A tribunal could not locate the policy document cited in a refusal decision, raising serious questions about AI in high-stakes government administration. Read more
Dwelly raises $170 million to roll up UK lettings agencies with AI — The proptech firm has acquired 17 agencies and is using AI to automate tenant communications, contracts and rent collection. Read more
Legora acquires London legal AI startup Wexler — Wexler's fact-extraction platform, already used by Clifford Chance and Herbert Smith Freehills, becomes the foundation of Legora's new London engineering hub. Read more
AI-generated doctor avatars spreading false health advice on TikTok — Research found AI-assisted content in 40% of top health videos reviewed, prompting warnings from NHS England and the Royal College of GPs. Read more
