UK government risks public backlash unless it can show who benefits from AI, IPPR report warns

The UK government risks being boxed in by an AI backlash if it doesn’t share the benefits of the technology with the public, according to a new report from charity IPPR. 

This warns that current policy is too narrowly focused on accelerating AI growth, while failing to articulate what it would actually look like for AI to improve most people’s lives. 

IPPR argues that public concern about AI is rising sharply, with the technology now seen as one of the biggest global risks. A growing anti-AI coalition is also taking shape, spanning protests over extreme risks, copyright disputes, children’s safety, and movements such as ‘QuitGPT’.  

With rapid technical advances meaning AI’s economic and social impacts are no longer theoretical, and with significant labour market disruption expected in the next 12 months, the political stakes are rising fast. 

Without decisive intervention, the report argues, AI risks concentrating economic power in a handful of tech firms, widening inequality, and replacing jobs faster than new ones are created. 

The authors also warn that risks are becoming harder to manage. As AI systems grow more advanced, safety testing is becoming less reliable, with models increasingly able to evade evaluation processes. 

Rather than choosing between uncritical “AI acceleration” and outright resistance, IPPR calls for a new approach: “AI directionism” - where government actively steers the development and deployment of AI towards clear public benefits. 

This would include shaping markets, directing investment, and setting clear priorities for how AI should be used in areas such as healthcare, education and public services. 

To do this, the government must take a far more active role in shaping it for public benefit. IPPR recommends: Redistributing windfall gains from Sovereign AI investments, back to the public; Deploying AI engineers to schools, hospitals and local government to experiment with where AI can improve outcomes; Reforming tax and subsidy schemes, so firms are rewarded for raising worker productivity rather than automating roles; Strengthening competition enforcement to prevent excessive concentration of power in the AI economy. 

Carsten Jung, Associate Director at IPPR, says:  “We don’t have to be passengers in the AI revolution, we can be drivers. Right now, policy is focused on speeding up AI adoption, but not on where it’s taking us. Without a clearer direction, we risk ending up with more inequality, more concentrated power, and benefits that never reach most people.” 

Roa Powell, Senior Research Fellow at IPPR, says: “People are increasingly worried about AI, and for good reason. If governments can’t show what AI is for and how it will improve lives, that concern could quickly turn into outright opposition. The task now is to make AI work for the public, not just for a handful of companies.” 

2026 RTIH Innovation Awards

AI will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.