Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of artificial intelligence on the fiscal outlook.

HM Treasury conducts a wide range of analysis to inform policy development. This includes working closely with the Department for Science, Technology and Innovation to understand the transformative impacts Artificial Intelligence (AI) may have across the UK economy.

The Office for Budget Responsibility (OBR) is the Government's official independent forecaster, and in its latest Fiscal Risks and Sustainability Report, published on 8 July 2025, it noted that if productivity grows faster than expected it could significantly improve the outlook for the public finances. The OBR also note that the “rapid development and dissemination of artificial intelligence could be one driver of upside risk to future productivity growth, although the magnitude and timing of the potential boost to productivity remains highly uncertain”.