Revealed: Starmer AI advisor has financial interests in almost 500 tech firms
“Raises serious questions about whether the department is robustly managing these potential conflicts.”
Keir Starmer wants AI at the heart of government. This week, the Prime Minister unveiled plans to digitise the civil service using AI, claiming it could save up to £45 billion.
But while the government boasts about its ambitions, it has been less forthcoming about the business interests of the architect behind its flagship AI policy: Matt Clifford.
In January, we reported that Clifford’s public register had not included interests in several AI businesses, including a £40 million AI investment fund run by Hakluyt, a firm with close Labour ties. At the time, the Department for Science, Innovation and Technology (DSIT) refused to publish a full list of his financial interests.
Now, we’ve obtained that list via Freedom of Information (FOI). The list - attached below - reveals venture capitalist Clifford holds investments in nearly 500 tech firms, including many in health-tech and life sciences—sectors set to benefit from the UK’s AI boom.
Entrepreneur First, the investment firm Clifford co-founded and co-owns, holds stakes in 449 tech companies. He also has dozens more holdings in his own name. Despite his central role in shaping AI policy, these financial ties were not publicly disclosed.
Transparency campaigners call this “extremely inadequate.” George Havenhand from Spotlight on Corruption said, “The department’s decision to withhold hundreds of declared interests from public scrutiny raises serious questions about whether it is robustly managing these potential conflicts.”
The FOI documents also reveal Clifford’s firm has stakes in at least eight companies involved in the Startup Coalition—an influential industry group funded by big tech. Entrepreneur First’s Chief Operating Officer, Tom Shinner, sits on the coalition’s board.
The Startup Coalition has lobbied in favour of the government’s controversial plan to exempt AI developers from copyright law—a move opposed by the media and music industries.
Labour ministers have met with the group to discuss AI regulation and copyright issues once a month, on average, records show. The coalition also receives funding from Google, which stands to benefit from AI exemptions.
Last month, crossbench peer and filmmaker Lady Beeban Kidron called the government’s copyright consultation “fixed” in favour of AI firms.
Gina Neff, director of the Minderoo Centre for Technology & Democracy at Cambridge University, told Democracy for Sale that government should talk to a wider circle of experts.
“There are many in civil society who are frustrated at the lack of access to tech policymaking in government. The UK has incredible expertise in AI, and we want to see that diversity reflected in decision-making.”
A spokesperson for the Startup Coalition defended its role, saying, “We advocate on behalf of UK startups—so it should come as no shock that we engage with ministers, officials, and ecosystem leaders regularly.” Entrepreneur First’s support for the coalition is listed on its website.
Clifford helped establish the UK’s AI Safety Institute—recently rebranded the AI Security Institute, reportedly to align with the Trump White House’s AI approach. He is widely regarded as a respected expert in the field. Starmer accepted all 50 recommendations from his AI plan, published in January.
However, some in the tech and media sectors are uneasy about his influence.
“Of course, you want entrepreneurs involved,” one industry source told Democracy for Sale. “But you don’t give one man—who runs the firm with the most AI investments in Europe—the job of writing the policy, then accept all his recommendations the same day he publishes his plan.”
Labour’s AI enthusiasm extends into government offices. New Scientist reported this week that Science and Technology Secretary Peter Kyle had asked ChatGPT for advice on why British businesses are slow to adopt AI.
So, we asked ChatGPT if the government has been transparent about its AI policymaking.
Its response? While “structures have been put in place to ensure responsible AI development,” details about lobbying efforts or external influences “have not been extensively disclosed.”
So there you have it.
DSIT and Matt Clifford have yet to respond to requests for comment.
In other news: Democracy for Sale was on BBC Radio 4 this week. The Naked Week took a dive into Peter Mandelson’s lobbying firm Global Counsel - and our investigation into its work for the Qatari Free Zone Authority.
As Tortoise Media’s Cat Neilan noted in the show, the lobbying regulator found that Global Counsel had not declared it work for the Qataris - but no rules were broken because the work was done by Global Counsel’s Middle Eastern arm, which isn’t VAT registered.
Just 4% of lobbying in British politics is covered by the current lobbying rules - surely it’s time we had some real transparency and accountability?
AI? If you're like me you don't understand all that this technology encompasses. Our politicians obviously don't either. We're constantly hearing about how they take the advise of one person because they speak the language. This is proving dangerous. That one person has his or her fingers in so many pies that we cannot be sure they are telling the truth or simply making money on all fronts. They advise under many acronyms. As technology is growing by leaps and bounds daily it seems we are left depending on people who cannot be questioned because we don't know the questions to ask. We need transparency of course but we also need that transparency to be in "layman's" language. Can it be done to everyones satisfaction? Probably not. I would hope that like with a doctors diagnosis the government asks for a second opinion until we are sure of what we really want and what we don't. Also that they find out who benefits, in case it's just the advisor and his "group."
As I suspected Labour had promised to clean up politics before being elected then do the total opposite once in power. Little wonder trust in politicians is at an all time low.