- AI Growth Labs will unlock new ways to accelerate innovation and cut bureaucracy in a safe environment
- More new homes, better outcomes for patients, and world-leading innovations for professional services among potential wins for the public
- This new approach to regulation will help drive forward growth and national renewal under the government’s Plan for Change
More new homes, better outcomes for patients, and world-leading innovations are among the benefits people can expect to see from a new blueprint for AI regulation being announced today, as the government slashes bureaucracy and ramps up the safe adoption of AI to unlock its full potential.
At the Times Sech Summit today (21st October), the Technology Secretary will announce plans to look at how companies and innovators can test new AI products in real-world conditions, with some rules and regulations temporarily relaxed under strict supervision.
Known as sandboxes, individual regulations are temporarily switched off or tweaked for a limited period of time in safe, controlled testing environments. They would initially be set up for key sectors of the economy like healthcare, professional services, transport, and the use of robotics in advanced manufacturing, to accelerate the responsible development and deployment of AI products.
The announcement comes as the Chancellor also details progress made towards delivering on the government’s vision for a regulatory system that better supports growth and innovation.
At today’s Regional Investment Summit, the Chancellor will announce a range of pro-growth reforms that will help deliver that vision set out March’s Regulation Action Plan, including a plan to save businesses across the country nearly £6 billion a year by 2029 by cracking down on pointless admin tasks.
AI applications hold the potential to make the lives of citizens better, faster. The AI Growth Lab will pilot responsible AI which can otherwise be held back by certain regulation, and generate real-world evidence for the impact they can deliver. This will ramp up adoption of AI and deliver opportunities for people across the country, cutting bureaucracy that can choke innovation and supporting businesses to flourish to deliver tangible national renewal.
For example, a testing ground focused on building AI tools could support health workers deliver better patient care on an accelerated timeline. This would also help reduce NHS waiting lists and time demands on frontline NHS staff, as well as ensure that public services are working around the lives of the British public.
Currently, a typical housing development application racks up 4,000 pages of documentation and takes as long as 18 months from submission to approval. By reviewing regulations to explore how AI could support officials, those times could be slashed – speeding up decision making and putting the government’s plans to build 1.5 million new homes by the end of the current Parliament in the fast lane.
Close working between businesses and regulators are already delivering transformations for the public. A sandbox led by the Information Commissioner’s Office has supported age verification company Yoti to fine tune their age estimation technology to help keep young people safe online, while another trial has helped FlyingBinary to develop online services which support mental health patients.
Technology Secretary Liz Kendall said: “To deliver national renewal, we need to overhaul the old approaches which have stifled enterprise and held back our innovators.
“We want to remove the needless red tape that slows progress so we can drive growth and modernise the public services people rely on every day.
“This isn’t about cutting corners – it’s about fast-tracking responsible innovations that will improve lives and deliver real benefits.”
In a further push to unlock benefits for the wider public through AI, a pot of £1 million is being set aside to support the Medicines and Healthcare products Regulatory Agency (MHRA) to pilot AI-assisted tools.
These would support scientific expertise, speed up drug discovery and clinical trial assessments, and licensing to improve efficiency and consistency – while keeping all decisions firmly in human hands.
The continued safe and responsible development of AI would be central to the government’s plans for its proposed AI Growth Lab. It would not be a testing ground where regulations could be switched on or switched off at will, but would see strict, time limited restrictions being put in place to set out which specific regulatory hurdles could be avoided or modified under close supervision.
It will be overseen by tech and regulatory experts and backed up by a strict licensing scheme with strong safeguards, meaning any breaches of individual agreements, or the emergence of unacceptable risks would stop testing in its tracks and open users who have breached their terms up to potential fines.
While this would mark new ground in terms of AI, other regulatory testing grounds have already been put to effective use across the economy.
The Digital Securities Sandbox for example is helping finance firms and innovators by giving them the ability to test innovative tech solutions for some of the most urgent challenges in the financial sector. It is helping to deliver a more secure and efficient financial system by focusing on Distributed Ledger Technology, which creates a single bank of data on financial transactions to speed up efficiencies and help tackle fraud.
Internationally, countries are already using sandboxes to speed safe deployment. Jurisdictions such as the EU, USA, Japan, Estonia and Singapore have announced or implemented some form of regulatory sandbox for AI.
The UK pioneered the global sandbox model with the launch of the FCA’s 2016 fintech sandbox – with transformative AI approaching, the UK must stay at the vanguard of international best practice in regulatory innovation – and the benefits this brings for UK innovation and jobs.
The government will now move ahead with a public call for views on its AI Growth Lab proposals. At the heart of that process will be considerations over whether the programme should be run in-house by the government, or overseen by regulators themselves.
The adoption of AI is the defining economic opportunity of the coming decade, but currently only 21% of UK firms are using the technology. The OECD currently estimates that AI could improve UK productivity by as much as 1.3 percentage points every year – worth the equivalent of £140 billion.
The AI Growth Lab will provide a route to test and pilot responsible AI innovations hindered by regulation – driving AI adoption and economic growth.
