AI is one of four areas set to be recognised as critical for national security.

Shipbuilding, steel, AI and energy infrastructure will all be recognised as critical for national security

New guidance will prioritise contracts for British business where necessary to protect national security.

The announcement comes with the government saying that recent events have shown the fragility of global supply chains and the importance of securing domestic capacity in key sectors which are vital for national security.

This is the first time the government is introducing clear guidance on how departments can protect the UK's economic security and build resilience across the four sectors.

Cabinet Office Minister, Chris Ward said: "This Government is backing British businesses and the working people who power them. These reforms are about using the full weight of Government spending to support British jobs, protect our national security and grow our economy.

"Whether you make steel in Scunthorpe, build ships on the Clyde or run a small tech firm in the Midlands, this Government is on your side."