AI plan for Wales: integrated impact assessment

1.1 The Welsh Government is proposing to publish its first AI Plan for Wales. The plan sets out how we will deliver our vision to:

harness the power of AI responsibly to deliver economic growth, enhance public services in both Welsh and in English, and equip people in Wales with the skills to thrive in a world shaped by intelligent technologies whilst ensuring equity for all.

1.2 The plan is high level and coalesces cross-sector AI activity in a coherent and structured way, articulating our collective ambition to use AI to serve the public good, drive forward our economy, grow AI skills and reflect the values of Welsh society. It builds on these foundations and sets expectations for the way in which government itself works but also leads the Welsh public sector and Wales as a whole.

1.3 The plan outlines 4 strategic pillars which will help us deliver this vision, guiding our actions, investments, and partnerships to align activity to our ambitions:

• Economic Growth - Harnessing the power of AI to drive investment, innovation, productivity, and prosperity for Wales.
• Educating Wales - Equipping people of all ages with the knowledge and skills to thrive in an AI-powered world.
• Equitable Delivery - Ensuring AI benefits all of Wales, with fairness, inclusion, and wellbeing at the centre.
• Excellence and Trust - Leading the safe, transparent, and effective adoption of AI across public services.

1.4 Delivery of the plan will also be in line with our agreed principles that the development and use of AI should be Ethical, Empathetic, Enterprising and Effective.

Long term

1.5 Wales is the first country in the world to legislate for long-term wellbeing through the Well-being of Future Generations Act, and this makes our approach to AI unique. This means that every decision on AI development and adoption must consider not only immediate benefits, but also its impact on future generations, ensuring technological progress serves sustainability, equality, and the long-term prosperity of Wales.

1.6 The AI Plan for Wales will contribute to our progress towards the national well-being goals of the Act. Embracing digital and data innovation can lead to greater economic opportunities and a more prosperous and resilient society. Equipping people with the digital and data skills they need and designing services around the user will also improve social cohesion, create a more healthy and equal society with well-connected communities and contribute to a thriving Welsh language.

1.7 The AI Plan has been developed in accordance with the Five Ways of Working, which are at the foundation of the way we intend to deliver the outcomes.

Prevention

1.8 AI is rapidly reshaping the way we live, work, and learn, with unprecedented growth in the use of AI and data-driven technologies in recent years. It is crucial that we understand and exploit these future opportunities, but are also aware of the associated risks, ensuring we plan appropriately for use in Wales, i.e. bilingual data collection.

1.9 AI has massive potential to improve public services in Wales and make them more cost effective. However, greater levels of investment and ambition is needed to drive radical change. Wales risks being left behind and missing out on opportunities to leverage funding, build skills and adopt AI to make our public services better, smarter and more efficient, as well as growing our economy.

1.10 Wales has already proved that we, as a nation, are uniquely positioned to lead in AI innovation. On 13 November, the UK government announced a huge investment for the North Wales AI Growth Zone, alongside new reactors at Wylfa on Anglesey, which will ensure the north Wales region can reap the economic benefits of AI.

1.11 On 21 November, the UK government also announced that an AI Growth Zone will be located in South Wales. Companies such as Vantage Data Centers and Microsoft are joining forces with the government to deliver the Growth Zone with a potential £10 billion of investment unlocking thousands of jobs, including at the former Ford Bridgend Engine Plant.

1.12 These 2 Growth Zones in Wales will accelerate the build-out of our AI data centres, and our close-knit tech community will foster collaboration across sectors. They will lead support for AI investments to facilitate real benefits for our local communities, creating high-quality jobs and growing our economy. They will help us drive investment in this sector of the future to make sure Wales is right at the forefront of transformational technology. Fast and reliable digital infrastructure underpins the AI revolution and is fundamental in securing the opportunities that it represents. Good quality digital infrastructure across all regions of Wales is critical to ensuring AI adoption is available to all.

Integration

1.13 The AI Plan for Wales coalesces cross-sector activity.  It describes the building blocks for exploring the potential of AI in a responsible, ethical, and collaborative way to provide benefits at scale. It builds on these foundations and sets expectations for the way in which government itself works but also leads the Welsh public sector and Wales as a whole.

Collaboration

1.14 The size and agility of Wales makes it ideal for trialling AI solutions to solve specific problems and scaling them nationally, through responsible innovation and cross-sector collaboration.

1.15 Our approach to AI set out in the plan is rooted in our values of social partnership, collaborative decision-making, fairness, transparency, equality and equity. It demonstrates our world-leading stance on promoting responsible and ethical AI adoption, putting social partnership at its heart. As AI continues to evolve, we seek to ensure that technological progress serves the public good and reflects the values of Welsh society.

1.16 The AI Plan itself has been developed in collaboration with officials across the Welsh Government, the Strategic AI Advisory Group (which comprises leading academic and industry experts), and the cross-public sector AI Leadership Group for Wales, (comprising Welsh public service representatives).

1.17 Delivery of the overarching plan will be led and co-ordinated by the Welsh Government’s Office for AI. Whilst some of the immediate actions within the plan are funded, achievement of the overall vision will require significant investment and prioritisation in order to maximise the long-term opportunities AI presents in strategy, policy and delivery. Following publication of the AI Plan, the public sector, third sector, industry and academia will need to consider how the high-level actions within this Plan will be delivered at the local, regional and sectoral level, with a clear focus on collaborative working both within and across sectors.

Involvement

1.18 AI is a powerful catalyst for change. However, there are risks around its use and we must be mindful of the impacts AI could potentially have on the workforce, human rights, the environment and wider society. Ensuring there is public confidence and trust in the use of AI is crucial. This will rely on collective commitment across the AI ecosystem in Wales to ensure AI technologies are used in responsible, transparent, ethical, inclusive and safe ways.

1.19 Through collaborative working which engages our citizens, as well as our public and private sectors, we will work collectively to support the improved well-being of Wales. To support this, the Plan includes high level commitments to increase public trust in AI through transparency, accountability, and meaningful engagement with the public and civil society about AI and its uses and to involve the public, civil society and workers in the design and delivery of AI services and solutions.

1.20 The AI Plan also aligns with leading international approaches to AI adoption, whilst describing Wales’s distinct approach which is rooted in fairness, accessibility, bilingualism.

Impacts

1.21 The AI Plan for Wales is pivotal in the Welsh Government delivering against its commitment to ensure maximum benefit from AI and create the biggest opportunity for success. AI represents a significant opportunity to move to a different way of working, positively impacting our public services, our economy, and the lives of people in Wales.

1.22 Effective and responsible use of AI is vital in supporting public service transformation, helping us to secure better outcomes for citizens of Wales in the long-term. The responsible adoption of AI technologies will also enable our private sectors to adapt and thrive, bringing significant benefits to economic productivity, future-proofing prospects and creating well-paid jobs.

1.23 The priorities set out in the Plan will focus delivery on those aspects which will enable us to continue to innovate, to deepen our impact and broaden our reach. It will help us drive efficiencies across the public sector, whilst also inspiring businesses to adopt and embrace AI innovations to drive productivity, resilience and sustainability.

1.24 The opportunities presented by AI will also support us in achieving our ambition of using technology to increase the daily use of Cymraeg.

Costs and savings

1.25 The AI Plan sets the direction of travel for AI for Wales. Whilst some of the immediate actions within the plan are funded, achievement of the vision will require significant investment and prioritisation in order to maximise the long-term opportunities AI presents in strategy, policy and delivery. Given the current constraints on public finances, without new funding this will require careful reprioritisation of funding where the positive impacts of investment in AI will need to be weighed against the disinvestment from within existing budgets. Where these impacts might fall to local authorities, consideration will need to be given to the potential cumulative impacts. Any such work will be taken forward in accordance with the Strategic Partnership Agreement between Welsh Government, Local Government and the Welsh Local Government Association.

1.26 Following publication of the AI Plan, the public sector, third sector, industry and academia will need to consider how the high-level actions within this Plan will be delivered at the local, regional and sectoral level, with a clear focus on collaborative working both within and across sectors. As part of this, it is anticipated that cost/benefit analysis will be undertaken to inform decision making recognising the potential impacts of reprioritising funding from within existing budgets on the public and third sectors.

Mechanism

1.27 No new legislation is proposed and it should be noted AI policy is reserved to the UK government. The plan is high-level and sets the overarching direction of travel for AI in Wales, with delivery being taken forward at the local, regional and sectoral level.

8.1 How have people most likely to be affected by the proposal been involved in developing it?

1.1 The AI Plan has been developed in collaboration with officials across the Welsh Government, Welsh Ministers, the Welsh Government’s independent Strategic AI Advisory Group (which comprises leading academic and industry experts), and the cross-public sector AI Leadership Group for Wales, (comprising Welsh public service representatives):

Welsh Ministers

• The First Minister for Wales
• Counsel General and Minister for Delivery
• Cabinet Secretary for Education
• Cabinet Secretary for Social Justice and Chief Whip
• Cabinet Secretary for Health and Social Care
• Minister for Mental Health and Wellbeing
• Cabinet Secretary for Housing and Local Government
• Cabinet Secretary for Finance and Welsh Language

Welsh Government Departments

• Business and Regions / Business Operations
• Digital and Technology – Health, Social Care and Early Years
• Workforce and OD – Health, Social Care and Early Years
• Education – Schools Digital Services
• Social Partnership, Employability and Fair Work
• Local Government and Planning
• HR Planning and Delivery
• Economic Policy and Strategy
• Digital, Data and Technology
• Culture, Heritage, Sport and Welsh Language
• Statistical Services
• Chief Scientific Officer

Members of the Strategic AI Advisory Group

• Wales TUC
• Organisation for Economic Co-operation and Development (OECD) / Cambridge University
• Kainos
• CGI
• Admiral UK
• Microsoft UK
• European AI Forum
• Responsible AI UK
• Tony Blair Institute for Global Change

(Note: Members of the Strategic AI Advisory Group act in a personal and voluntary capacity, they do not represent their organisation or any affiliation)

Members of the cross-public sector AI Leadership Group for Wales

• Welsh Local Government Association
• Digital Health and Care Wales
• Public Health Wales
• Transport for Wales
• Centre for Digital Public Services
• Caerphilly County Borough Council
• Neath Port Talbot County Borough Council
• Rhondda Cyon Taf County Borough Council
• ProMo Cymru
• Tai Calon Housing
• United Welsh Housing
• Future Generations Commissioner for Wales
• Welsh Revenue Authority
• The Alan Turing Institute
• The Welsh Government

1.2 The delivery of the high-level actions set out in the Plan will be through projects and activities agreed at the local, regional and sectoral level through agreed implementation plans. In line with the Digital Service Standards for Wales, these will be developed with user-centred principles, including user research, to ensure those who will use the service have their needs understood and met. The impacts of each activity or project will be assessed as necessary. 

8.2 What are the most significant impacts, positive and negative?

3.1 Although the AI Plan will not have a substantial direct impact on its own right, the plan for is pivotal in delivering against the commitment to ensure maximum benefit from AI and create the biggest opportunity for success. The plan sets out how we will deliver our vision:

“To harness the power of AI responsibly to deliver economic growth, enhance public services in both English and Welsh, and equip people in Wales with the skills to thrive in a world shaped by intelligent technologies whilst ensuring equity for all.”

3.2 AI represents a significant opportunity to move to a different way of working, to deliver excellent, more cost-effective public services, unlock inclusive economic growth and upskill workers and the general population.

3.3 Effective and responsible use of AI is vital in supporting public service transformation, helping us to secure better outcomes for citizens of Wales in the long-term. The adoption of AI technologies will also enable our private sectors to adapt and thrive, bringing significant benefits to economic productivity, future-proofing prospects and creating well-paid jobs that will last.

3.4 The opportunities presented by AI will also support us in achieving our ambition of using technology to increase the daily use of Cymraeg and to take full advantage of the ethical and bilingual use of emerging technologies.

3.5 The AI Plan for Wales will contribute to our progress towards the national well-being goals. We know that embracing digital and data innovation can lead to greater economic opportunities and a more prosperous and resilient society. Equipping people with the digital and data skills they need and designing services around the user will also improve social cohesion, create a more healthy and equal society with well-connected communities and contribute to a thriving Welsh language.

3.6 AI can also support real-time environmental monitoring, helping to optimise the use of natural resources, and can contribute to carbon reduction in certain circumstance, for example through increased remote working, better digital public services, modernising the technology we use and making better use of data. However, the increased use of AI does have the potential to increase CO₂ emissions if it is not implemented in a responsible, inclusive and ethical way which weighs performance and productivity gains against environmental impacts.

8.3 In light of the impacts identified, how will the proposal

• maximise contribution to our well-being objectives and the seven well-being goals, and/or
• avoid, reduce or mitigate any negative impacts?

3.7 Wales is the first country in the world to legislate for long-term wellbeing through the Well-being of Future Generations Act, and this makes our approach to AI unique. It means that every decision on AI development and adoption must consider not only immediate benefits, but also its impact on future generations, ensuring technological progress serves sustainability, equality, and the long-term prosperity of Wales.

3.8 The AI Plan for Wales will contribute to our progress towards the national well-being goals. We know that embracing digital and data innovation can lead to greater economic opportunities and a more prosperous and resilient society. Equipping people with the digital and data skills they need and designing services around the user will also improve social cohesion, create a more healthy and equal society with well-connected communities and contribute to a thriving Welsh language. Developing a deeper understanding of the environmental impact of AI, promoting sustainable AI practices and exploring AI applications that support climate resilience, energy management, and the circular economy will help balance the benefits of AI with improving social, economic, environmental and cultural well-being.

3.9 The AI Plan has been developed in accordance with the Five Ways of Working, and they are at the foundation of the way we intend to deliver the outcomes we want to see.

3.10 As a small country, Wales can lead the way in utilising AI to deliver better public services, develop the economy and reduce inequalities. Through collaborative working which engages our citizens, as well as our public and private sectors, we will work collectively to improve the well-being of Wales. The AI Plan for Wales aligns with leading international approaches, while carving out a distinct role rooted in fairness, accessibility, bilingualism, and public-service excellence.

8.4 How will the impact of the proposal be monitored and evaluated as it progresses and when it concludes?

4.1 Delivery of the overarching plan will be led and co-ordinated by the Welsh Government’s Office for AI.

4.2 The public sector, third sector, industry and academia will need to consider how the high-level actions within this plan will be delivered at the local, regional and sectoral level, with a clear focus on collaborative working both within and across sectors. It is expected that these plans will clearly set out the timelines for implementation and how progress will be tracked and measured.

What plans are in place for post implementation review and evaluation?

4.3 The AI Plan for Wales will be updated to reflect changing priorities and needs throughout its lifespan. Due to the pace of change of AI, this plan, and those implementation plans that will sit alongside it, will need to continually evolve to ensure it continues to be fit for purpose in this ever-changing world of AI.