In our previous edition, we covered the OECD's benchmark verdict on digital government progress, Estonia's plan to hand AI agents state-backed IDs and Germany's Federal Modernization Agenda moving from paper into practice.
This week, we look at Andy Burnham's first act as UK Prime Minister, scrapping the £1.8bn digital ID scheme. Also notable was the EU AI Act crossing from paper into enforcement on 2nd of August, as well as India looking to integrate AI into its Digital Public Infrastructure (DPI) approach
Our main stories this week:
UK’s £1.8bn digital ID scrapped in Burnham’s first day in office
EU AI Act enforcement phase begins on 2 August
India moves to make AI its next Digital Public Infrastructure utility
As a reminder, we have recently begun to expand our digital government coverage away from just Substack and onto Linkedin, Twitter and Instagram. For original content, audience engagement, and roundups of all our pieces, feel free to follow us over on those channels. Also check out our sister newsletter, interweave.africa.
New UK Prime Minister Andy Burnham is scrapping plans for a government-issued digital ID, originally intended for all British adults.
Government efforts and resources will instead be redirected towards cost-of-living support and everyday priorities.
Plans for the digital ID scheme had initially been introduced by Sir Keir Starmer last year, where he argued that a mandatory digital ID would modernize the state, clamp down on immigrants working illegally and enable citizens to prove their identity to access key services quickly.
Before being scrapped, the government had already reduced the scope of the plans, removing the compulsory element and making it voluntary, suggesting digital IDs could eventually let people manage everything from childcare to tax returns on a “one stop” app.
Two years after the AI Act entered into force, the enforcement phase has arrived.
From 2 August, the Commission’s AI Office and national authorities has been able to formally investigate and sanction non-compliance, and new transparency rules have begun to bite.
Chatbots must now disclose that users are talking to AI, deepfakes must be labelled and AI-generated content must carry machine-readable marks. Fines under Article 50 reach €15M or 3% of global turnover and GPAI breaches up to €35M or 7%.
Over 180 organizations have signed the voluntary Code of Practice on AI-generated content. The heavier high-risk obligations were deferred by the Digital Omnibus to December 2027 and August 2028 but the transparency and enforcement clocks for GPAI were not moved.
India is exploring how the DPI model behind Aadhaar, UPI and Account Aggregator could be extended to AI in order to make compute, models and data accessible as shared public rails rather than leaving AI concentrated among a few large foreign firms.
The proposal centers on a “Unified Intelligence Interface” - affordable public compute, open-weight foundation models and multilingual systems built on Indian-language datasets.
The catch is cost and governance, with high compute and energy demands as well as unresolved questions on privacy, bias and accountability that India would need to regulate before opening AI access at country-wide scale.
Malta launches €15.6M tender for European Digital Identity Wallet - Lu-Hai Liang, Biometric Update
The Malta Digital Innovation Authority has issued a €15.6M tender to build a fully EUDI-compliant wallet, letting citizens prove identity, verify age, store documents, and e-sign across all EU member states.
Conformance framework for EU Digital Identity Wallets arrives with ARF v3.0 - Chris Burt, Biometric Update
The latest version of the EUDI Wallet Architecture and Reference Framework introduces a set of shared, reusable test cases for assessing wallet functionality, a precursor to certification.
GovTech layoffs part of plans to maintain quality of digital services for Singaporeans - Davina Tham, Channel News Asia
In a rare case of Singaporean public-sector layoffs, GovTech has retrenched 93 staff as the agency moves from one-off vendor-delivered projects to owning and running products itself. GovTech said the shift is not driven by AI or cost-cutting (it retained 102 officers), and it is retraining 110 into new roles through apprenticeships.
South Korea launches free AI agent project for all citizens - Asia Today
South Korea has begun accepting proposals for a government-backed service giving every citizen free access to an AI chatbot and public-service assistant aimed at closing the digital divide. The Ministry of Science and ICT will select two or three private firms with direct-to-public experience, with applications open until 11 August.
The many shades of sovereignty, digital sovereignty in practice - Global Government Forum
Digital sovereignty has moved from an abstract talking point to concrete legal, policy and procurement instruments. This piece argues sovereignty is best understood not as a binary but as a spectrum of choices about control, dependency, and resilience across the tech stack, a framing we aimed to capture in this weeks summary.
Making Agentic AI work for government: a readiness framework - World Economic Forum
The WEF and Capgemini's framework scores agentic AI readiness across 70 government functions rather than ministry-by-ministry, finding that around half combine high potential with manageable complexity.

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