The Department for Science, Innovation and Technology (DSIT) said the plan has been designed to help the UK capitalise on the economic benefits of AI, which already contributes £3.7bn to the economy.

Five principles, including safety, transparency and fairness, will guide the use of AI as part of a new national blueprint to be adopted by regulators. However, DSIT also said it wanted to avoid heavy-handed legislation that could “stifle innovation”.

Advances such as the ChatGPT app could improve productivity and help unlock growth, but there are concerns about the risks it could pose to people’s privacy, human rights or safety, the government said.

Britain is currently home to twice as many companies providing AI products and services as any other European country, and hundreds more are created each year.

“Currently, organisations can be held back from using AI to its full potential because a patchwork of legal regimes causes confusion and financial and...