OpenAI to store UK data as government backs AI for public services

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OpenAI, the creator of ChatGPT, will be able to store data on British soil for the first time under a new Government agreement aimed at enhancing security for businesses amid rising global cyber threats. Deputy Prime Minister David Lammy outlined plans to host information on “sovereign servers” operated by the tech company, improving both privacy and accountability while strengthening national resilience. Officials hope the move will encourage investment by assuring firms that their data is managed securely in the UK. The initiative comes as ministers look to AI to help revive Britain’s economic growth following cyber attacks on companies such as Jaguar Land Rover, Marks & Spencer and the Co-op.

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As part of the rollout, over 1,000 probation officers will be equipped with an in-house AI tool called Justice Transcribe, which automatically records and transcribes conversations with offenders. The Ministry of Justice estimates that automating administrative tasks could save 240,000 workdays and free up around 1,000 frontline staff. Similar AI transcription tools are also being used in the NHS to accelerate patient discharges and reduce waiting lists, reflecting a broader push to make Britain an “AI superpower.”

Sir Keir Starmer emphasised that AI adoption will be safe and regulated, balancing innovation with public protection. Deputy Prime Minister Lammy, who is also Justice Secretary, described the partnership with OpenAI as positioning Britain at the forefront of the global tech revolution. “By adopting AI, we’re cutting burdensome admin and enabling frontline staff to focus on the work only humans can do,” he said, highlighting the benefits for probation officers and public safety.

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OpenAI CEO Sam Altman noted that UK usage of the company’s products has quadrupled over the past year, including civil service and business applications. Technology Secretary Liz Kendall added that the Government is laying the infrastructure to support AI across Britain. “This partnership ensures key workers can dedicate more time to delivering better outcomes, reducing administrative burdens and speeding up vital services for the public,” she said.

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