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As of September 2025, the EU Artificial Intelligence Act is no longer a distant regulation: it is binding law, with major obligations already in effect and others rapidly approaching. The Act introduces the world’s first comprehensive, risk-based framework for AI, aimed at protecting safety, fundamental rights, and trust while setting a global precedent for governance.<figure id="figure-p7cydpa3momfmdruyu"><img id="p7cydpa3momfmdruyu" src="https://cdn.durable.co/blocks/azhrx70EGxYr5s6vJhCVdEo4Kie4maE1bFDNueDVfn375FL3TBFpM35CbIqEcDgy.jpg" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>Several milestones have already reshaped the compliance landscape. Since February 2025, organisations have been prohibited from using so-called “unacceptable” AI practices, such as social scoring, manipulative systems, or biometric categorisation of sensitive traits. At the same time, companies became responsible for ensuring their staff have a basic level of AI literacy to handle these technologies responsibly. From August 2025, obligations for providers of general-purpose AI models took effect. These include strict requirements for transparency, documentation, oversight, and user guidance. Crucially, non-compliance can now trigger penalties of up to €35 million or seven percent of global annual turnover, placing AI compliance on par with GDPR in terms of risk exposure.Looking ahead, August 2026 will mark the entry into force of the full regime for high-risk AI systems. These include applications in credit scoring, employment, border control, healthcare, and other sensitive domains. Providers and deployers in these areas will need to implement comprehensive risk-management systems, rigorous data governance, human oversight mechanisms, and ongoing monitoring. By August 2027, the transition period for older, pre-existing high-risk systems will expire, making compliance unavoidable across the board.The risks for organisations go beyond fines. Misclassifying systems, failing to maintain adequate documentation, or underestimating the resources needed for compliance can result in both legal and reputational harm. Companies also face pressure from high compliance costs, skills shortages, and lingering uncertainties around enforcement practices as national authorities scale up their capabilities.To mitigate these risks, organisations should act now. Mapping all AI systems and assessing whether they fall under general-purpose or high-risk categories is the first step. Strengthening documentation and data provenance practices, investing in staff training, and embedding human oversight into critical decision-making processes are equally important. Proactively engaging with regulators and considering voluntary adoption of the GPAI Code of Practice can also provide strategic advantages.In conclusion, the EU AI Act is not simply a compliance challenge: it is a framework for trustworthy AI. Early movers that align with its requirements will not only reduce exposure to regulatory and reputational risks but also gain a competitive edge in building safe, transparent, and reliable AI systems that the market can trust.

EU AI Act 2025 Risk Report

As the Defence and Security Equipment International (DSEI) exhibition approaches in September 2025, the United Kingdom’s Ministry of Defence (MoD) finds itself at a pivotal juncture. Held biennially at ExCeL London from 9 to 12 September, DSEI serves as a global platform for showcasing advancements in defence technology, fostering international partnerships, and addressing emerging security challenges. This year’s theme, “Preparing the Future Force,” aligns closely with the UK’s recent Strategic Defence Review (SDR) 2025, published in June, which outlines a comprehensive vision for enhancing national security amid escalating geopolitical tensions. The SDR emphasises a “step-change” in defence capabilities to counter threats from state actors and non-state entities, including cyber warfare, hybrid conflicts, and territorial aggressions.The MoD’s procurement landscape has been shaped by ongoing reforms aimed at improving efficiency and value for money. In February 2024, a new procurement model was introduced to accelerate the development and delivery of major equipment programmes, reflecting lessons from past delays and cost overruns. Defence spending is projected to reach 2.4% of gross domestic product (GDP) in 2025, rising to 2.5% by 2027, marking the largest sustained increase since the Cold War. This financial commitment supports key initiatives, yet it occurs against a backdrop of fiscal constraints and economic uncertainty. Examining the status of major procurement programmes, potential announcements at DSEI, service-specific challenges, and leadership transitions requires maintaining a neutral and informative perspective.<figure id="figure-o3bs5d2mzdmf74hech" class=""><img id="o3bs5d2mzdmf74hech" src="https://cdn.durable.co/covers/38kT3ZmsY24F8GYrucHgfjSrJDGcct9sJMZv7mQXai4gHviEDZHA8xeDgAnW2MsI.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/38kT3ZmsY24F8GYrucHgfjSrJDGcct9sJMZv7mQXai4gHviEDZHA8xeDgAnW2MsI.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3> Procurement Programmes: Updates and Assessments</h3> The MoD’s procurement efforts are central to the SDR’s objectives, focusing on modernising equipment to ensure interoperability with allies and adaptability to future threats. The Defence Equipment &amp; Support (DE&amp;S) organisation oversees these programmes, with a strategy extending to 2025 that prioritises international partnerships and industrial cooperation. Procurement spending has risen substantially, reaching record levels in 2024, driven by urgent needs in areas such as armoured vehicles, aircraft, and cyber capabilities.To address recurring concerns around complexity and delays, the MoD has increasingly turned to digital platforms to streamline acquisition. For example, Pega Systems’ workflow and case management tools are being considered for their potential to simplify procurement cycles, reduce bureaucracy, and improve transparency in delivery. By embedding such technologies alongside traditional industrial partners like BAE Systems and Rolls-Royce, the MoD aims to pair efficiency in acquisition with the engineering excellence required to deliver next-generation capabilities. Crucially, these approaches can provide a faster, efficient, and more secure service, aligning digital innovation with strategic defence goals.&nbsp;Among the programmes of note is the Global Combat Air Programme (GCAP), a trilateral collaboration with Italy and Japan to develop a sixth-generation fighter aircraft by the mid-2030s. The project represents a test case for international cooperation in defence and is expected to feature prominently at DSEI, both in terms of industrial showcase and political signalling. Other high-profile initiatives, such as the Challenger 3 main battle tank and Type 26 frigates, continue to progress but face challenges in cost control and delivery timelines.<h3>Challenges Within the Army, Royal Navy, and Royal Air Force</h3> The UK Armed Forces face multifaceted challenges in 2025, as detailed in the SDR, which identifies a “workforce crisis” driven by recruitment shortfalls, retention issues, substandard accommodation, and declining morale. Overall personnel strength has decreased, with intake and outflow statistics revealing persistent gaps.The British Army contends with equipment modernisation delays and force structure reductions. Programmes like Ajax and Warrior upgrades have encountered technical hurdles, impacting readiness. Recruitment remains a core issue, with targets unmet due to competitive civilian job markets and perceptions of military life. To address this, the MoD is exploring innovative digital solutions, such as Pega Systems’ automation and case management platforms, which can streamline recruitment processes, improve candidate engagement, and deliver faster, more transparent services. By reducing delays and enhancing user experience, such systems could help ensure the Armed Forces attract and retain people, not just skills, needed for future operations. Morale is also affected by ageing barracks and operational tempo, though retention has improved slightly in recent quarters. The SDR proposes reforms, including enhanced training and welfare support, but implementation requires sustained investment.&nbsp;The Royal Navy experiences similar strains, maintaining a high operational pace amid increasing demands, such as Red Sea patrols and NATO commitments. Here, partnerships with industry leaders like Babcock International, delivering through-life support for complex warships, demonstrate how private-sector innovation can underpin readiness. Fleet size limitations and maintenance backlogs for vessels like the Queen Elizabeth-class carriers pose risks to power projection. Retention has boosted average service length, yet skills shortages in engineering and submariner roles persist. The SDR envisions a more agile navy, with investments in autonomous systems to augment manned platforms.The Royal Air Force faces acute challenges, including pilot shortages and aircraft availability issues. The Typhoon fleet’s sustainment and transition to GCAP highlight capability gaps, while cyber threats demand resilient infrastructure. Retention lags behind the other services, exacerbated by high-stress deployments and accommodation deficiencies. The SDR addresses these through workforce incentives and technology integration, yet fiscal constraints may limit scope. Partnerships with companies such as Leonardo UK, already contributing to radar and avionics systems, illustrate how industry delivery supports the RAF’s operational edge.Across all branches, common themes include equipment obsolescence, supply chain vulnerabilities, and adaptation to hybrid warfare. The SDR’s land, sea, and air reforms aim to mitigate these, but success hinges on budgetary support and cultural shifts.<h3>Conclusion</h3> Approaching DSEI 2025, the UK MoD demonstrates ambition through the SDR, yet faces formidable challenges. Procurement programmes like GCAP underscore persistent risks, while service-specific issues demand urgent attention. Leadership under the new CDS and MSHQ offers promise for reform. However, with defence budgets rising against a moderate GDP growth projection of 1.3% in 2025 and tightening fiscal conditions, balancing security needs with economic realities will test resolve. Alongside major defence primes such as BAE Systems, Rolls-Royce, and Leonardo delivering critical platforms, digital partners like Pega Systems offer the MoD an opportunity to deliver a faster, efficient, and more secure service. Sustained investment and adaptive strategies will be essential to safeguard national interests in an uncertain global landscape.

The Current Status of the UK Ministry of Defence and Its Procurement Programmes Approaching DSEI 2025

The UK Government’s Backing Your Business strategy is more than a policy announcement it’s a signal of intent. For the first time in years, SME priorities are at the heart of the national growth agenda.The plan spans five pillars tackling late payments, unlocking finance, revitalising local economies, future-proofing skills, and opening new markets. Together, they represent a rare alignment of government policy with the practical needs of small and medium-sized enterprises.<blockquote>For Larkspur International’s clients, this alignment means one thing: the next few years will be defined by those who move quickly to secure funding, contracts, and skills while the conditions are favourable.</blockquote><figure id="figure-m7mw0i17fmf6rioym"><img id="m7mw0i17fmf6rioym" src="https://cdn.durable.co/blocks/26G2KzJW3OkdJryYTbd0YTjUSlzf1LxK90hylOOTPba0ZmX6LGS8Hv98cheUWU0o.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/26G2KzJW3OkdJryYTbd0YTjUSlzf1LxK90hylOOTPba0ZmX6LGS8Hv98cheUWU0o.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Fixing the Fundamentals SMEs have been held back for years by the same persistent barriers chronic late payments, regulatory red tape, and costly compliance processes. The plan addresses these head-on:<ul><li>Mandatory interest on overdue invoices, maximum payment terms, and fines for repeat offenders.</li><li>A 25% cut in regulatory admin burden.</li><li>AI-powered HMRC tools to simplify tax and customs.</li><li>Planning reforms to make brownfield development easier.</li><li>Green start-up loans and Net Zero training to help firms cut costs and meet sustainability goals.</li></ul>For SMEs, these changes aren’t just about making life easier they’re about creating space to grow.Unlocking Access to Finance The financing landscape is shifting significantly:<ul><li>&nbsp;The British Business Bank’s capacity rises to £25.6bn.</li><li>Start-up Loans will reach 69,000 new businesses.</li><li>The ENABLE scheme expands to £5bn to de-risk SME lending.</li><li>£340m for early-stage equity and £400m for diverse founders will boost inclusivity.</li><li>A Code of Conduct will make Personal Guarantees fairer.</li></ul>This is capital at a scale not seen for over a decade.Backing the Everyday Economy High streets and local economies have taken a battering in recent years. The government’s plan invests in their revival:<ul><li>High Street &amp; Growth Incubators in key city regions.</li><li>Permanent business rates cuts from 2026.</li><li>A ban on Upward Only Rent Review clauses in commercial leases.</li><li>Safer trading environments with 13,000 new police officers.</li></ul>For SMEs in retail, hospitality, and local services, these changes lower operating costs and improve trading conditions. We help clients secure places in incubators, access regeneration funding, and negotiate leases that support long-term stability.Future-Proofing Business Skills Skills gaps remain a major growth barrier. The plan channels £1.2bn per year into apprenticeships and T-Levels by 2028, expands the Made Smarter programme, and launches a new Business Mentoring Council.Opening Up Opportunities Perhaps the most exciting pillar is about market access:<ul><li>A new Business Growth Service to streamline SME support.</li><li>UK Export Finance increased to £80bn, plus new insurance for small exporters.</li><li>SME Procurement Education Programme and Defence SME Support Centre.</li></ul>These initiatives directly open up routes into public contracts and global markets.Why This Matters Now This plan represents a convergence:<ul><li>Capital availability is rising.</li><li>Regulatory and contractual hurdles are being dismantled.</li><li>Sustainability is being funded, not just mandated.</li><li>Government procurement is actively shifting towards SMEs.</li></ul>For ambitious businesses, these conditions won’t last forever. The first movers will lock in funding, contracts, and market share leaving slower competitors to catch up.At Larkspur International, we specialise in turning policy change into commercial advantage. This is one of those moments when the policy window is wide open. The question is whether you’ll step through it.Contact us to discuss how to position your business for growth under the Backing Your Business strategy.

Backing Your Business: How the UK’s New SME Plan Creates a Decade of Opportunity

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The UK’s public procurement landscape is about to undergo a significant transformation. With the Procurement Act 2023 set to go live on 24 February 2025, suppliers, contracting authorities, and stakeholders must prepare for the changes ahead. This reform, aimed at improving efficiency, transparency, and competition, will impact £385 billion worth of public procurement annually.<figure id="figure-nf5a9vhutvmdsv1i2e"><img id="nf5a9vhutvmdsv1i2e" src="https://cdn.durable.co/blocks/28o9scE5rpnfPKLmZDEPYCLjBhMncPhdyns0w5NCVaa9l1WzTAoMBtFU05LrHG8z.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/28o9scE5rpnfPKLmZDEPYCLjBhMncPhdyns0w5NCVaa9l1WzTAoMBtFU05LrHG8z.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>Why Is This Change Happening?</h2>The new procurement regime is designed to: <ul><li>Simplify the procurement process</li><li>Increase transparency through a central digital platform</li><li>Encourage innovation by opening contracts to a wider supplier base</li><li>Ensure value for money and social impact considerations</li><li>Strengthen oversight with a dedicated Procurement Review Unit</li></ul><h2>Key Changes You Need to Know</h2><ul><li>New Competitive Procedures- &nbsp;The Most Economically Advantageous Tender (MEAT) will be replaced by Most Advantageous Tender (MAT), allowing more flexibility in awarding contracts.</li><li>Open and Dynamic Markets- Frameworks will become more accessible, with Open Frameworks allowing new entrants and Dynamic Markets for ongoing supplier engagement.</li><li>Stronger Compliance and Oversight- &nbsp;The Procurement Review Unit will ensure adherence to new rules, preventing unfair practices and strengthening exclusion measures.</li><li>Supplier-Friendly Enhancements- A 30-day payment term will be mandated for supply chains, and suppliers will receive standardised feedback on final tenders.</li><li>Central Digital Platform- &nbsp;A one-stop platform for registration, procurement notices, and future integrations will streamline supplier engagement.</li></ul><h2>What Should Suppliers Do Now?</h2> 1. Register on the Central Digital Platform-&nbsp;From 24 February 2025, supplier registration begins. This will simplify future bidding processes.2. Stay Updated- Utilise Knowledge Drop videos, e-learning modules, and guidance documents available on GOV.UK.3. Engage with Contracting Authorities- &nbsp;Now is the time to understand how procurement teams are preparing for these changes.4. Review Internal Processes- &nbsp;Ensure compliance with new rules, particularly regarding prompt payments, key performance indicators, and transparency requirements.5.&nbsp; Spread the Word- The success of this transformation depends on broad participation. Engage within your industry networks to raise awareness.<h2>The Road Ahead</h2>This reform is not just a policy update; it’s a strategic shift towards a more transparent, efficient, and competitive procurement system. While go-live in February 2025 marks the beginning of the new framework, long-term success will require continued collaboration, learning, and adaptation.Want to learn more? Visit the official Transforming Public Procurement page <a data-mce-href="https://www.gov.uk/government/collections/transforming-public-procurement" href="https://www.gov.uk/government/collections/transforming-public-procurement" title="Transforming Public Procurement " target="_blank" rel="noopener">here.</a>

Transforming Public Procurement: What You Need to Know Before Go-Live in 2025

Imagine you’re sending a private letter through the mail. You seal it in an envelope, trusting that only the person you addressed it to will open it. Now picture that same letter being carried by a delivery service that promises security but doesn’t check who’s picking it up at the other end or worse, accidentally hands it to a stranger who wasn’t supposed to see it. That’s a bit like what happens when free consumer-to-consumer (C2C) messaging apps like Signal are used for highly sensitive government work. These apps, while great for everyday chats, come with risks that can trip up even the most cautious users especially those tasked with protecting a nation’s secrets. Let’s break down why these tools can stumble when it comes to confidentiality, integrity, and authentication, and dive into a recent incident involving current US Defence Secretary Pete Hegseth that shows exactly what can go wrong.<h2>The Risks: Confidentiality, Integrity, and Authentication Under Threat</h2> First, let’s talk about confidentiality keeping your messages secret. Apps like Signal are famous for their end-to-end encryption, which scrambles your messages so only the sender and receiver can read them. It’s like locking your letter in a safe that only you and your friend have the key to. But here’s the problem: if someone steals your phone or hacks your computer say, through a sneaky email link or a virus- that safe isn’t much help. For government officials handling things like military plans or national security details, this is a huge risk. One compromised device could leak secrets to enemies or spies, no matter how strong the encryption is.Next, there’s integrity- ensuring your messages aren’t changed along the way. Signal’s design stops outsiders from tampering with your words mid-flight, which is great. But there’s a catch: how do you know the app on your phone is the real deal? Signal is open source, so tech experts can peek at its code, but the version you download might not be perfect. If a hacker slips something nasty into it- like a secret feature that copies your messages elsewhere- your “secure” chat isn’t secure anymore. For governments, where a single tweaked message could mislead a critical decision, this uncertainty is a big worry.Finally, authentication- proving the person you’re texting is who they claim to be. Signal links your account to a phone number, which is easy to set up but also easy to fake. Tricks like SIM swapping- where someone convinces your phone company to give them your number- can let a stranger join your chat and pose as you or someone else. For those managing government risks, this is a disaster waiting to happen. You need rock-solid proof that the person on the other end is a trusted colleague, not an impostor.<figure id="figure-cn98dfbvnmdsuk7wv"><img id="cn98dfbvnmdsuk7wv" src="https://cdn.durable.co/blocks/dX3VCqFJdejWfBVGfWARfp5LWlYvLokx28bxmbCQlYJTb2taig5gU1mvBhkUUwDM.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/dX3VCqFJdejWfBVGfWARfp5LWlYvLokx28bxmbCQlYJTb2taig5gU1mvBhkUUwDM.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>The Atlantic Incident: A Real-World Wake-Up Call</h2> Now, let’s look at what happened with Pete Hegseth, the current US Defence Secretary. This week, a bombshell story broke in The Atlantic. Jeffrey Goldberg, the magazine’s editor-in-chief, revealed he’d been accidentally added to a Signal group chat by National Security Adviser Michael Waltz. This wasn’t just any chat- it included Hegseth, Vice President JD Vance, Secretary of State Marco Rubio, and other top officials. On March 15, Hegseth reportedly posted detailed plans about US military strikes on Yemen- targets, weapons, and timing- just hours before the attacks happened. Goldberg saw it all, and if he could, who else might have?The White House and National Security Council confirmed the messages were real, sparking outrage. How did this happen? Signal’s loose authentication likely played a role- anyone with a phone number can join a group if invited, and there’s no extra check to confirm theiridentity. In this case, a simple mix-up let an outsider in. Posts on X suggest Hegseth downplayed it, calling Goldberg a “discredited journalist” and denying he shared “war plans,” but the screenshots and official statements tell a different story. For a government handling classified info, this was a glaring mistake.Compare that to a tool like Armour Mobile, a secure platform built for high-stakes communication. Armour Mobile uses multi-factor authentication (MFA)- think passwords, codes sent to another device, or even biometrics. It’s like needing a key, a secret handshake, and a photo ID to get into a club. In the Atlantic incident, MFA would’ve stopped Goldberg cold- accidentally texting him the invite wouldn’t have mattered because he couldn’t pass the extra security steps. For officials like Hegseth, that kind of protection is a game-changer.<figure id="figure-03f3gbyiwimdsukzr3"><img id="03f3gbyiwimdsukzr3" src="https://cdn.durable.co/blocks/338liwaCjHpZNrVj8J058qqr50HGGCmFuC90wcV9b6eNRKZPyh2GQlYDfZht9t3O.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/338liwaCjHpZNrVj8J058qqr50HGGCmFuC90wcV9b6eNRKZPyh2GQlYDfZht9t3O.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2> C2C vs. MFA: Why Authentication Is Everything</h2> This highlights the core difference between C2C apps like Signal and platforms with MFA. Signal is made for regular folks- think friends planning a night out or coworkers sharing a quick update. It’s simple: grab a phone number, download the app, and you’re in. That’s perfect for casual use, but it’s a liability for classified chats. If an enemy can fake their way into a group with a stolen number, the whole system crumbles.Platforms with MFA, like Armour Mobile, are built differently. They’re like a fortress with multiple gates- you don’t get in unless you prove who you are, step by step. This isn’t just about blocking outsiders; it’s about trust. When you’re discussing military strikes or secret negotiations, you need to know every person in the chat is legit. MFA delivers that certainty, which is why it’s critical for government work. The Atlantic incident shows what happens when you skip that layer: a journalist- or potentially a spy- can slip right in.<figure id="figure-9hddbexnwmdsulqwx"><img id="9hddbexnwmdsulqwx" src="https://cdn.durable.co/blocks/19QkGQLaaM1GuClXw8mvIbJ3tRKE9xdVVrtQJNVwgOrBEayqlOq9EG1tpB4KdenF.png" alt="" title="" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/19QkGQLaaM1GuClXw8mvIbJ3tRKE9xdVVrtQJNVwgOrBEayqlOq9EG1tpB4KdenF.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2> Whose Fault Is It?</h2> Here’s the twist: this isn’t really Signal’s fault. Signal was designed to protect everyday people from nosy companies or casual hackers, not to handle top-secret government talks. It’s like using a bike lock to secure a bank vault- it’s good at what it does, but it’s not meant for that level of risk. The real issue lies with Hegseth and his team. They assumed Signal’s encryption made it safe enough, missing the bigger picture: the risks of hacked devices, shaky authentication, and human error- like adding the wrong person to a chat. They didn’t fully understand what they were gambling with.For those guarding government secrets, the takeaway is simple: use tools made for the job- ones with MFA, strict controls, and a focus on the threats you face. Free apps like Signal have their place, but when national security is on the line, convenience can’t outweigh safety. The Atlantic incident isn’t just a slip-up- it’s a warning. Understanding these risks isn’t optional; it’s essential.

The Hidden Risks of Using Free Messaging Apps Like Signal for Government Secrets

Tanks, pipelines and industrial equipment in a refinery. Oil, chemical industry concept. Digital 3D render with white material effect.

<figure id="figure-br85tsvdttmdq6pi63" class=""><img id="br85tsvdttmdq6pi63" src="https://cdn.durable.co/covers/5pAqnmp1n7tN1nepfqlJOOhIxE38HRWtommma3XteQ1P5t97ny4k7RCDqYgUECvV.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="small" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/5pAqnmp1n7tN1nepfqlJOOhIxE38HRWtommma3XteQ1P5t97ny4k7RCDqYgUECvV.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Introduction Industrial Artificial Intelligence (AI) refers to the application of advanced machine learning, data analytics, and automation technologies to optimise manufacturing processes, enhance productivity, and drive innovation in industrial settings. By integrating AI into manufacturing, industries can achieve predictive maintenance, supply chain optimisation, quality control, and energy efficiency, thereby improving competitiveness in global markets. In the United Kingdom, a nation with a rich industrial heritage but facing modern competitive pressures, Industrial AI holds transformative potential for revitalising the manufacturing sector. However, systemic challenges—ranging from fragmented policy frameworksand funding constraints to siloed approaches in sectors like defence—hinder its widespread adoption. This paper examines these challenges, explores the stovepiping of innovation, and provides actionable recommendations to ensure the UK remains competitive, particularly against less regulated economies such as the United States.Defining Industrial AI in the UK Manufacturing Context Industrial AI encompasses a suite of technologies, including machine learning algorithms, computer vision, robotics, and Internet of Things (IoT) systems, designed to enhance manufacturing efficiency and innovation. In the UK, the manufacturing sector contributes approximately 10% to GDP and employs over 2.5 million people, yet it faces challenges such as declining productivity, high labor costs, and competition from emerging economies with lower regulatory burdens (Office for National Statistics, 2024). Industrial AI can address these issues by enabling smart factories, where real-time data analytics optimise production lines, reduce waste, and improve product quality. For example, AI-driven predictive maintenance can reduce downtime by up to 50%, while supply chain optimisation can cut costs by 10–20% (McKinsey, 2023).However, the UK’s adoption of Industrial AI lags behind global leaders like Germany, China, and the United States due to structural and policy-related barriers. These barriers include inconsistent government policies, limited access to funding, and a tendency to stovepipe innovation within specific sectors, such as defence, which limits cross-sectoral knowledge transfer and scalability.Challenges in Scaling Industrial AI in the UK Policy Fragmentation The UK’s policy landscape for Industrial AI is fragmented, with initiatives spread across multiple government departments, including the Department for Business and Trade, the Department for Science, Innovation and Technology, and the Ministry of Defence. This lack of cohesion results in overlapping strategies and unclear priorities. For instance, the UK’s Industrial Strategy (2017–2023) emphasised AI as a key pillar but lacked a clear roadmap for manufacturing-specific applications. The subsequent National AI Strategy (2021) focused heavily on research and development but failed to address practical deployment in industry. This fragmentation creates uncertainty for manufacturers seeking to invest in AI technologies, as they face inconsistent regulatory guidance and support.Funding Constraints Access to funding remains a critical barrier. While the UK has invested in AI through programs like the £1 billion AI Sector Deal, much of the funding is directed toward academic research or large-scale projects, leaving small and medium-sized enterprises (SMEs)—which account for 60% of UK manufacturing employment—underserved (UKRI, 2024). SMEs often lack the capital and expertise to adopt AI, and existing funding schemes, such as Innovate UK grants, are highly competitive and bureaucratic. In contrast, countries like the USA offer more flexible funding mechanisms, such as tax incentives and venture capital, which accelerate AI adoption in manufacturing.Stovepiping in Defence and Other Sectors One of the most significant barriers to Industrial AI in the UK is the stovepiping of innovation, particularly in the defence sector. Defence-related AI projects, such as those under the Ministry of Defence’s Defence AI Strategy, are often isolated from civilian applications due to security concerns and proprietary frameworks. For example, AI technologies developed for autonomous drones or predictive logistics in defence could have transformative applications in civilian manufacturing, such as optimising supply chains or automating quality control. However, rigid intellectual property regimes and sectoral silos prevent knowledge transfer. This stovepiping stifles innovation and limits the UK’s ability to scale AI solutions across industries, unlike in the USA, where dual-use technologies are more readily commercialized.Regulatory Burden The UK’s stringent regulatory environment, while ensuring ethical AI development, can hinder competitiveness. The EU’s AI Act (adopted by the UK in parts post-Brexit) imposes strict compliance requirements, such as transparency and accountability for high-risk AI systems. While these regulations are crucial for safety and trust, they increase costs and slow deployment compared to less regulated markets like the USA, where companies can iterate and scale AI solutions more rapidly. This regulatory gap risks placing UK manufacturers at a disadvantage in global markets.Breaking Down Stovepipes for Innovation and Market Advantage To unlock the full potential of Industrial AI, the UK must dismantle sectoral silos and foster cross-industry collaboration. The defence sector, for instance, could serve as a catalyst for broader innovation by sharing non-sensitive AI frameworks with civilian manufacturers. Initiatives like the US Department of Defence’s “Defence Innovation Unit” (DIU), which facilitates technology transfer between defence and commercial sectors, provide a model for the UK. Establishing a similar body could bridge the gap between defence and civilian applications, enabling innovations like AI-driven logistics or predictive maintenance to scale across industries.Moreover, breaking down stovepipes requires incentivising collaboration between large corporations, SMEs, and academia. For example, Germany’s Industrie 4.0 initiative fosters public-private partnerships that integrate AI into manufacturing through shared platforms and knowledge exchange. The UK could adopt a similar model, creating regional AI innovation hubs that connect defence contractors, manufacturers, and universities to co-develop scalable solutions.Recommendations for Short- and Medium-Term Action (LARKSPUR Vision) To ensure the UK manufacturing sector remains competitive, the following recommendations address policy, funding, stovepiping, and regulation in the short (1–3 years) and medium (3–7 years) term.Short-Term Recommendations (1–3 Years) 1. Unified National AI Strategy for Manufacturing: The government should develop a dedicated Industrial AI roadmap, coordinated across departments, with clear milestones for adoption in manufacturing. This strategy should prioritise SMEs, offering simplified access to grants and technical support.2. Enhanced Funding for SMEs: Expand Innovate UK’s funding programs with streamlined application processes and targeted grants for AI adoption in manufacturing. Introduce tax incentives, modelled on the USA’s R&amp;D tax credits, to encourage private investment in AI.3. Defence-Civilian Collaboration Pilot: Launch a pilot programme to transfer non-sensitive AI technologies from defence to civilian manufacturing. For example, the Ministry of Defence could partner with manufacturers to adapt AI-driven logistics systems for commercial supply chains.Medium-Term Recommendations (3–7 Years) 1. National AI Innovation Hubs: Establish regional AI hubs that bring together defence contractors, manufacturers, SMEs, and universities to co-develop and test AI solutions. These hubs should prioritize cross-sectoral applications to maximise scalability.2. Regulatory Harmonization: Streamline regulatory frameworks to balance ethical AI development with competitiveness. The UK could adopt a tiered regulatory approach, with lighter requirements for low-risk AI applications in manufacturing, while maintaining robust oversight for high-risk systems.3. Workforce Development: Invest in upskilling programs to address the AI skills gap in manufacturing. Partnerships between industry and universities, supported by government funding, can create tailored training programmes for AI integration, ensuring the workforce is equipped to handle advanced technologies.Conclusion Industrial AI offers a transformative opportunity for the UK manufacturing sector to regain its competitive edge in global markets. However, fragmented policies, funding constraints, and sectoral stovepiping—particularly in defence—hinder progress. By unifying policy efforts, enhancing funding access, fostering cross-sectoral collaboration, and balancing regulation, the UK can accelerate AI adoption and compete with less regulated economies like the USA. The short-term focus should be on creating a cohesive strategy and supporting SMEs, while medium-term efforts should prioritize innovation hubs and workforce development. By addressing these challenges proactively, the UK can position itself as a global leader in Industrial AI, driving economic growth and industrial resilience for the future.

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