AI assistants now answer one in five customer service calls, survey finds

The announcement came after weeks of speculation and follows months of negotiations between officials, industry representatives and campaign groups, several of whom had warned that any delay would carry significant costs.

Speaking at a briefing on Monday morning, a senior official said the decision had not been taken lightly. "We have looked at the evidence very carefully," they said. "There is no perfect option here, but doing nothing was never one of them."

"There is no perfect option here, but doing nothing was never one of them"

Critics were quick to respond. Opposition figures described the move as "too little, too late", while campaigners argued that it did not go far enough to address the underlying problems that have been building for more than a decade.

Independent analysts have cautioned against reading too much into the initial figures. "The headline number looks dramatic, but the picture underneath is more nuanced," said one researcher who has studied the sector for 15 years. "What matters is what happens over the next 12 months."

The background

The details were set out in a 140-page document published alongside the statement. Among the measures are new reporting requirements, a phased timetable for implementation and an independent review to be completed within two years.

For people living with the consequences, the debate in the capital can feel distant. "Nobody asked us," said one resident, who has lived in the area for more than 30 years. "We hear the numbers on the news and then we go outside and see what it actually means."

Officials insist that the plan is fully funded, although the precise breakdown has not yet been published. A spokesperson said further details would follow "in due course".

International observers said the decision was being watched closely elsewhere, with several governments understood to be considering similar steps. "This sets a precedent," said a diplomat familiar with the discussions. "Others will now feel they have cover to act."