Just under a year ago the second reading of Lord Holmes’ Artificial Intelligence (Regulation) Bill in the House of Lords explored the myriad of issues in regulating Artificial Intelligence (AI) as covered in Unpacking the UK’s approach to AI regulation. On 13 January 2025, the Prime Minister Kier Starmer announced the UK Government’s response to the publication of the AI Opportunities Action Plan, which sets out some direction for that regulatory journey.
While the proposal from the Artificial Intelligence (Regulation) Bill of a ‘co-ordinator of regulators’ is not fleshed out in detail by the AI Opportunities Action Plan, it does suggest that consideration is given to “a central body with a mandate and higher risk tolerance to promote innovation across the economy”. Whether or not a singular AI regulator emerges, the significance of regulators in the success of the plan is expressly acknowledged stating “regulators themselves have an important role in supporting innovation as part of their Growth Duty”. How each regulator grapples with the particular issues it faces within its remit remains to be seen, but many of the issues surrounding the regulation of AI in individual areas as raised in the House of Lords debate are impliedly recognised with the plan stating “ineffective regulation could hold back adoption in crucial sectors”.
That adoption will in large part be driven by confidence and the plan asserts that regulation alongside safety and assurance can drive the innovation that is sought giving the example of the success of regulatory ‘sandboxes’ that have supported fintech startups in the UK. Enabling such controlled environments to allow for AI experimentation may balance the drive for innovation while fostering public confidence in this fast-changing arena. A key area of concern in the House of Lords debate was the stifling of creative industries by AI and the Government said yesterday in its response to the plan that it would ensure that the UK has “a competitive copyright regime that supports both our AI sector and the creative industries”. The Government is already moving on this, opening a consultation on copyright and artificial intelligence, which is explored in more detail in What’s mined is yours – A UK Government consultation on copyright and AI.
While such efforts that may help support adoption and help the demand side of the equation, the plan acknowledges that there is a huge role for the Government in creating the appropriate supply side conditions. Aside from AI development being a huge call on capital, the plan acknowledges the need to develop physical infrastructure and a suitable talent environment to support AI growth. The first of these would be supported by the establishment of ‘AI Growth Zones’, which the Government said in a statement would be areas “with enhanced access to power and support for planning approvals, to accelerate the build out of AI infrastructure”. The plan suggests creating a “bespoke planning use-class” for AI data centres to ease the approval of such projects and supporting infrastructure. A key part of that supporting infrastructure is power. AI is highly energy intensive and the Government’s response to the plan includes the establishment of a new ‘AI Energy Council’ to identify solutions to the industry’s energy demands, which may include Small Modular Reactors.
The second part would be dealt with by looking at ways in which the immigration regime could be modified. This may be in part by more narrow measures such as including certain leading AI educational institutions within the High Potential Individual visa eligibility list and by a wide spectrum approach of reducing the cost and complexity of obtaining visas that may deter re-location.
The previous Government’s position seemed to be that it was too early to move on AI regulation due to concern at stifling growth in the sector, but this seems to have been turned on its head and the current view is that regulation, of the right sort, is needed so that in the words of @SciTechGov “artificial intelligence will be unleashed across the UK” and for the asymmetric bet to pay off.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at January 2025.