TLDRs:
- OpenAI signs agreement with UK Ministry of Justice to provide 2,500 ChatGPT Enterprise seats.
- UK data residency option enables local storage for compliance in ChatGPT Enterprise and Edu.
- Ministry of Justice contract details unclear, highlighting challenges in public procurement transparency.
- AI adoption in UK government paves way for broader enterprise compliance solutions.
OpenAI has taken a significant step in expanding its AI footprint in the United Kingdom by signing a new agreement with the UK Ministry of Justice (MoJ).
Under this partnership, 2,500 civil servants will gain access to ChatGPT Enterprise, following a successful pilot testing the tool for routine administrative and operational tasks.
The deal, revelead Thursday, is part of a broader collaboration under a memorandum of understanding signed earlier this year, aimed at advancing the UK’s AI Action Plan.
OpenAI, a U.S.-based AI company renowned for its ChatGPT platform, will also roll out a new UK data residency option for its API platform, ChatGPT Enterprise, and ChatGPT Edu starting October 24. This feature allows British users to store their data locally, meeting strict UK data protection and sovereignty requirements.
Ministry of Justice First to Adopt AI
The Ministry of Justice is the first government department to implement OpenAI’s UK data residency option, marking a pivotal moment in the public sector’s AI adoption.
While the full details of the MoJ contract remain undisclosed, public procurement records list the total contract award at £6,753,400. The pricing per seat has not been revealed, making cost comparisons and benchmarking for other departments challenging.
The contract term runs from October 1, 2025, to September 30, 2027, and was procured through CDW Limited, a frequently used IT reseller for UK public bodies.
OpenAI’s new data residency feature enables organizations to keep sensitive data within the UK’s legal jurisdiction. This capability is particularly valuable for sectors requiring strict compliance standards, including financial services, healthcare, and legal firms. By storing data locally, enterprises can ensure adherence to regulatory frameworks while leveraging AI tools like ChatGPT for productivity, analysis, and communication tasks.
Collaboration Supports National AI Action Plan
This partnership aligns with the UK government’s broader AI strategy, designed to integrate AI tools responsibly and efficiently across public services.
The initiative supports government staff by automating routine tasks, freeing up time for higher-value work, and demonstrating the practical application of AI in civil service operations.
Experts suggest that the MoJ’s adoption could set a precedent for other government departments to follow, promoting wider AI deployment across public institutions.
Enterprise AI Gains Compliance Advantage
OpenAI’s UK data residency offering also presents new opportunities for private enterprises and system integrators.
Consulting firms such as Slalom and Boston Consulting Group can now support organizations in regulated sectors with AI deployments that comply with local data rules. Additionally, IT migration specialists can assist companies running non-UK OpenAI deployments to transition workloads safely, keeping data within UK jurisdiction while preserving existing workflows.
The partnership reflects a growing recognition of AI’s role in the public sector and emphasizes the need for compliance-focused solutions. By combining advanced AI capabilities with local data residency, OpenAI is positioning itself as a key player in the UK’s AI ecosystem, supporting both government efficiency and enterprise compliance.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
