AI, Housing, and Growth: Reflections from Labour Party Conference 2025

Digital illustration showing the connection between housing development, data, and AI innovation

A few thought-provoking days at Labour Party Conference 2025 exploring how AI adoption, housing policy, and economic growth are increasingly interconnected. Through my role on the NCF Consult Panel, I was pleased to connect with Vic Rayner OBE and Beccy Incledon-Blevin, hearing about their exciting work creating a Social Care Test Bed in Liverpool with Civic Health Innovation Labs. I also caught up with Adam from Datnexa to discuss their National Frailty Index and AskClem; a chatbot created especially for the conference. I also enjoyed hearing from Cohere, Snap Inc., the Ada Lovelace Institute, and Dame Chi Onwurah MP (Chair, Science, Innovation and Technology Committee) about how innovation, data, and AI are reshaping every sector.

Where We Are with AI

A few key reflections emerged from the discussions: Shadow AI use is real. Colleagues are already experimenting informally. AI has become an essential work tool, but without guidance it carries real cyber and data security risks. Guardrails matter. Clear boundaries, policies, and governance frameworks make responsible innovation possible. Adoption is uneven. Some sectors are reimagining services, while others don’t yet see the use case. The challenge is how to bring more technically hesitant colleagues and organisations along. AI as the new aggregator. Residents, voters, and colleagues increasingly consume content filtered or generated by AI rather than traditional media. That shift is reshaping how we build trust and communicate.

Housing and Growth: The Numbers Tell a Story

The housing sessions at Conference made stark the scale of the challenge and the opportunity. In the 1970s, around 80% of housing spend went into building new homes. Today, 92% is spent on temporary accommodation and Housing Benefit. Around 160,000 children now live in temporary accommodation. New-build social housing is excluded from Right to Buy for 35 years, helping to recoup build costs and prevent early sales. Yet in parts of London, viability is so weak that delivery targets are being cut by 22%. To unlock growth and address the housing crisis, public spending must be rebalanced and delivery enabled at scale supporting local authorities and housing associations to build again. Hearing from Matthew Pennycook MP, Florence Eshalomi MP, Kate Henderson (NHF), Ian McDermott (Peabody), and contributions from the Joseph Rowntree Foundation underlined one message: housing policy and economic growth cannot be separated.

Looking Ahead

The convergence of AI, housing, and growth is becoming clearer. Whether designing better services, building homes, or improving communication with residents, AI will play a role. But success depends on more than technology. It requires ambition, trust, and investment in people and systems. That is the real opportunity for this next chapter: to make innovation work not only for efficiency, but for communities and people.

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