Monday 24th July 2023

(9 months, 3 weeks ago)

Lords Chamber
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Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, I spoke in the “AI in the UK” debate just over a year ago, on 25 May. At that time, I was the president of the CBI, which I stepped down from in June last year after completing my two-year term. I quoted Susannah Odell, the CBI’s head of digital policy at the time, who said:

“This AI strategy is a crucial step in keeping the UK a leader in emerging technologies and driving business investment across the economy. From trade to climate, AI brings unprecedented opportunities for increased growth and productivity. It’s also positive to see the government joining up the innovation landscape to make it more than the sum of its parts … With AI increasingly being incorporated into our workplaces and daily lives, it’s essential to build public trust in the technology. Proportionate and joined-up regulation will be a core element to this and firms look forward to engaging with the government’s continued work in this area. Businesses hope to see the AI strategy provide the long-term direction and fuel to reach the government’s AI ambitions”.


At that time, I made the same point I have made many times: if we are to achieve this ambition, I do not think we can do it by investing 1.7% of GDP in research, development and innovation compared with the 3.1% and 3.2% that America and Germany do. We need to increase our investment in R&D and innovation by at least 1% of GDP. Does the Minister agree?

Since the mid-1990s—in less than three decades—we have had the internet, dotcom, blockchain, and now we have AI; by the way, hand in hand with AI, quantum is the next big leap. AI is developing at a rapid pace and, since we debated it just over a year ago, there is much more on the agenda, from generative language models such as ChatGPT, to medical screening technology. It is computer vision; it is speech to text and natural language understanding; it is robotics; it is machine learning; I could go on with the amazing capabilities.

The UK Government, in their National AI Strategy, say that AI is the

“fastest growing deep technology in the world, with huge potential to rewrite the rules of entire industries, drive substantial economic growth and transform all areas of life”.

Such transformative technology brings both risks and benefits, which we are discussing in this debate.

A point that has not been brought up is that 96% of companies involved in AI are SMEs. Around 75% of those are based in London and the south-east, and the headings are technology, healthcare and science, professional services and financial services. Although 96% of them are SMEs, £7.6 billion in revenue—well over half—is from the large companies. That is, of course, not surprising at all.

If I had the time, I could list all the benefits of AI, from safer cars and transport systems to benefits for businesses and public services, to democracy being made stronger and to crime prevention and defence, as we have heard from the noble and gallant Lord, Lord Houghton. I could list the risks, including a lack of transparency, bias and discrimination, privacy and ethical concerns, security risks, concentration of power, dependence on AI, job displacement, economic inequality, legal and regulatory challenges, an AI arms race, loss of human connection, misinformation and manipulation, and unintended consequences. As the noble Lord, Lord Ravensdale mentioned—I thank him for leading this debate—the existential risk is frightening, to say the least. PWC has said that 7% of jobs in the UK were at high risk of being displaced, but the overall conclusion is that, broadly, it should be neutral. Would the Government reassure us that that will be the case?

There is a call for rapid regulatory adaptation. Sundar Pichai, the CEO of Google, has warned about the potential harms of AI and called for a “suitable regulatory framework”. BCS has issued a report outlining how AI can be helped to “grow up” responsibly. The Russell group of universities—I am chancellor of the University of Birmingham—has said that AI should be used for the

“benefit of staff and students—enhancing teaching practices”,

and that we should not be frightened of it.

I am proud to announce that the University of Birmingham, along with IIT Madras, one of the leading Indian educational institutions, has just announced a joint master’s degree in AI and data science, conducted on both campuses, with the students coming out with a joint degree. This is a first. The report of Sir Tony Blair and the noble Lord, Lord Hague, has been referred to: A New National Purpose: AI Promises a World-Leading Future of Britain.

Collaboration is absolutely crucial, but no one has mentioned this. Can the Minister assure us that the Horizon programme, which is sitting on the Prime Minister’s desk, is going to be activated? The sooner that is done and the sooner we have collaborative research, the more it will help AI to accelerate.

I turn to public trust. AI will be undermined unless the public are informed. What are the Government’s plans to educate the public on AI?

My final point is on labour shortages. We need to activate the labour shortage occupation list to enable us to have access to the talent to actually make the UK a world leader in AI. Will the Government do that?