Lord Holmes of Richmond debates involving the Home Office during the 2024 Parliament

Wed 11th Dec 2024

Product Regulation and Metrology Bill [HL]

Lord Holmes of Richmond Excerpts
Moved by
52: After Clause 2, insert the following new Clause—
“Review of product regulations and supply chains(1) On the day on which this Act is passed, the Secretary of State must initiate a review of all product regulations and standards as they pertain to supply chains.(2) The review must assess how product regulations align with the principles of traceability, transparency and trust.(3) The review must recommend a new supply chain standard to take into account factors including the supply chain of a product’s—(a) environmental impact;(b) transparency and traceability, in real time, of products, financial, trade and legal documents.”
Lord Holmes of Richmond Portrait Lord Holmes of Richmond (Con)
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My Lords, it is a pleasure to take part in today’s Committee proceedings on the Bill. In doing so, I declare my interests as set out in the register, not least my technology interests; in particular, I have advised and socially recruited for an AI business.

In moving Amendment 52, I shall speak also to Amendments 53 and 79 in my name. These may seem disparate and interestingly grouped together, but they have three things largely in common. There are three of them, I wrote them all and, most importantly, they are all underpinned by the potential of having a golden thread of inclusion and innovation running right though them.

On Amendment 52, I am looking for the Government to consider a metrology standard around supply chains, which are notoriously opaque. If you try to go beyond even one step back in any supply chain, things start to get a bit fuzzy. As a result of the technologies now available to us, however, there is the potential to unite in real time physical goods, legal documentation, financial documentation and all customs documents. More than that, there is the potential to link all the environmental factors, not just of that supply chain but of the goods and services involved in it, right from the point when they were brought into being. This is another example of the extraordinary power of the new technologies and what the data that underpins them can bring in driving economic as well as social benefits, while under- pinning environmental benefits as a consequence. What is the Government’s position on how we could look at developing such a standard for the supply chain, which would be beneficial not just in each specific supply chain—for all those businesses and entities involved—but right across our society and economy?

Amendment 53 looks at large language models—the foundational models that have had so much publicity and focus, not least in the last two years. As with Amendment 52, I suggest the development of a standard around LLMs and consider the achievement of that standard to enable access to the UK market and economy. Again, that would be beneficial to consumer and citizen, and social, economic and, yes, environmental benefits could all flow from it. It is important to consider not only the economic and environmental costs of developing those foundational models but their usage, every time somebody asks one of these models—we all know their names—a query about those costs. All that would be worth considering in the development of a standard. On the specifics of some of the data used in the development and training of those models, we should look at the IP and copyright issues and consider the legislation and whether the LLMs would fall into the category of an article for the purposes of the copyright Act.

I should be interested in the Minister’s view on the specifics within that amendment and the benefit that could be gained from the development and work—even if a standard was not the final output—to be done around these models, and the levels of understanding and public awareness that could flow from such a piece of work.

Amendment 79 suggests the development of a standard: inclusive by design, or IBD. Be one young, old, a disabled person, or somebody from any socio- economic group, geography or city, putting IBD in a product benefits everybody by the very nature of that inclusion. There are two parts to this. First, all new products should be developed and deployed as inclusive by design. That should be self-evident and relatively straightforward to bring about. Secondly, and perhaps as important, largely because it is less discussed, there is what happens when a product has previously been inclusive and accessible but then, as a result of a change, an update or a new product rollout, becomes inaccessible and exclusionary.

It is probably best to draw this out through example. Consider the card readers that we all use to pay for goods. For many years, they were inclusive to me as a blind person and to all members of society, not least through the simplest elements of raised keys and a dot on the “5” key. I would know exactly where that was and I, inclusively and independently, could put my PIN into the card machine. Then we saw the rollout of completely flat-screen card payment machines. They are not inclusive or accessible, and of no use to me and millions of people up and down the country who, prior to that product rollout, could have inclusively, independently and—crucially in this context—secretly made their payments. What option is there now, if presented with a flat screen machine? Should one whisper, sotto voce, “4982”? That is not my PIN number. Even if it were, the paucity of funds in the account renders it worthless for noble Lords to remember. Or should I give my card to a friend or ask the person in the store to make the payment under those terms?

None of that is inclusive, independent, secret or in any sense dignified for a citizen in 21st century Britain. Amendment 79 is all about looking into the development of a standard, inclusive by design. Imagine what we could do right across our society and economy. Think about the debate, discourse and discussion, and the positive input that the development of this standard could have across this country, and then connecting right around the world. Such a positive piece of work could drive benefits, business, economic opportunities and social inclusion. It would be good for citizens, business, innovators, investment and our country.

I look forward to the Minister’s response. I hope it will be seen as a positive piece of work that could easily be picked up and rolled out by the Government. I very much look forward to the debate. I beg to move.

Lord Kirkhope of Harrogate Portrait Lord Kirkhope of Harrogate (Con)
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My Lords, I always like the opportunity to hear my noble friend Lord Holmes because his amendments mostly very much appeal to me. Today’s Amendment 79, to which he has just spoken so eloquently, certainly appeals to me, and I just wanted to add a few words.

I am responsible, for my sins, for the Parking Act 1989, which I am sure noble Lords will spend a lot of time reviewing and considering. The nature of that Act was for the first time to allow parking to take place in this country in a way that did not exclusively require the use of cash. We were slightly ahead of the game at the time, because I think we had only Barclaycards and not telephone exchanges that you could ring into to park your car. All these things have come about because of that simple Act.

I share the frustrations of my noble friend Lord Holmes when we look at how so many things nowadays are developments of such initiatives but without taking into account the great importance of trying to be as broad as possible in their appeal and use. A good example of that was given by my noble friend. There are many machines—I know he has expressed his frustration before about cash machines—and other products, in the general sense, that cannot be accessed by people with disabilities, or where there is insufficient explanation of how they can be implemented. I very much support his ideas about inclusive by design and see no reason why, in the 21st century, we cannot be more enlightened about this. It seems unnecessary for it to have to be raised in this way regularly in legislation that we pass in Parliament, but here we have a marvellous opportunity for the Government—the Minister is looking very excited about this prospect—to introduce, in a legitimate area of the Bill, something that will really make lives much better for those with disabilities through product development. I very much support Amendment 79.

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Lord Holmes of Richmond Portrait Lord Holmes of Richmond (Con)
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I thank all noble Lords who took part in this interesting debate, and the Minister for his response. Clearly, there is still a long way to go when it comes to an inclusive experience, inclusive products and inclusive services—and, thus, a sense of living in communities and cities, and in a country, that are inclusive by design.

I thank the Minister for his response. I would not be averse to a letter; it is always nice to receive one. Christmas cards are also possible at this festive time. I will certainly look carefully at Hansard, but I fancy that we may well return to “inclusive by design” on Report. For the time being, I beg leave to withdraw Amendment 52.

Amendment 52 withdrawn.

Product Regulation and Metrology Bill [HL]

Lord Holmes of Richmond Excerpts
Moved by
14: Clause 1, page 2, line 6, after “item” insert “, and includes production reliant on software or artificial intelligence”
Lord Holmes of Richmond Portrait Lord Holmes of Richmond (Con)
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My Lords, it is a pleasure to take part in this second day of Committee on the Bill, and a pleasure to speak on this group of amendments. I will move Amendment 14 in my name and speak also to Amendments 54, 75 to 78 and 99 to 101. In doing so, I declare my interests, not least my technology interests, as set out in the register, in particular as an adviser to Socially Recruited, an AI company.

The purpose of these amendments is to bring greater clarity to consumers, citizens and indeed our whole society and economy when it comes to the interaction of AI across so many sectors of our lives, not least in product production, deployment and use. Each amendment has a specific focus. When taken as a suite, they would make a significant difference to citizens’ and consumers’ understanding of where AI has been used in the production of a product or is inherent to the deployment and use of that product—which can only be a positive thing.

Amendment 14 seeks to amend the definition of “production” to highlight where AI has been involved in the production process. As with the previous group of amendments, I could just as easily have drafted an amendment expanding the definition of “product”, because it seems that, with the Bill as drafted, we have a product regulation regime and a production of product regime that do not really fit the economy, society and methods of production we now have across our daily experience.

I will give another example. We have had doorbells and out-of-control vacuum cleaners, potentially. Now let me give you the Minister’s fridge. After a hard day in Committee, the Minister returns home and takes out a lovely piece of soft cheese. Unfortunately, because the AI involved in that fridge has decided, for whatever reason—we know not—to increase the temperature in the fridge to 25 degrees, the Minister becomes very ill as a result of his midnight snack. How does the Bill help the Minister in his travails? The fridge is clearly a product and would be covered, but in no sense can the safety, operation and use of the fridge be of any benefit in the set of circumstances that resulted from AI acting in the way it did. That is what Amendment 14 is all about and I look forward to the Minister’s response on how the Bill could be amended to give better protection, certainty and understanding where AI is involved in the production of products, and indeed in the products themselves.

Similarly, that theme continues through Amendment 54. I believe that, if we are to have greater clarity and consistency, it would be helpful for the Government to undertake a review of all product legislation and regulation, both to see how it would deal with all the issues, opportunities and challenges around artificial intelligence and to assess all that statute and regulatory framework’s ability to look at competency in addressing AI, in terms of how it is operating and having an impact on so many people’s lives because of the products in which it is already embedded, whose use it is part of and which it controls. Oftentimes, it has an impact on people without them even knowing that AI is in the mix. I look forward to the Minister’s response on this potential review.

Amendments 75 to 78 look at labelling. I thank the noble Baroness, Lady Bennett, for signing Amendment 75; similarly, I should have thanked the noble Viscount, Lord Trenchard, for co-signing Amendment 14. If consumers are to have greater understanding of the products they are buying, it would seem helpful for there to be labelling of that product—simple labelling stating that AI was involved in the production of the product and/or is involved in the product. By this, I mean not only a simple label to alert consumers if that is the case but a QR code with far more detail so that all consumers can be aware of the AI elements of a product’s production, particularly in terms of its power usage, water usage and compute usage. Clause 5 of my Artificial Intelligence (Regulation) Bill, to which the Minister in opposition gave full-throated support, covers a number of these issues. I am interested in the Minister’s response to the concept of labelling around product where AI has been involved in the production of a product or is involved in its use.

Amendment 76 goes specifically to the music industry, where artificial intelligence itself has created music products. Again, to my mind, this should be labelled so that consumers know how music has come into being—that is, if it is simply AI-generated with no human involvement.

Amendment 77 offers a statutory option for the Minister to consider amending the Consumer Rights Act 2015, which would give far greater clarity to musicians—indeed, to all creatives across our economy and our society. The current situation is that many creatives find themselves on the wrong end of AI usage of their creative works, with no respect, no consent and no remuneration.

Amendment 78 moves us on and takes us into the areas of likeness and other elements of our personal IP. If AI products take such IP rights, this is not currently covered. I am interested in the Minister’s response as to how we can give our creative community greater clarity, greater comfort and greater support—and, through such labelling and statutory amendment, give far greater legislative cover not just to musicians but to all of our creatives, right across our society and our economy.

Amendments 99 to 101 look at potentially developing new metrology standards for AI data centres and search. Again, they cover these recurrent themes of consumer knowledge, consumer understanding and clarity around what is involved in AI-created products and products with AI in them. It is unlikely that many people who conduct an AI search or query, particularly on the new generative AI models, know the impact of every search in terms of its power usage, its water usage and its compute usage. Similarly, how many of us consider the water usage and compute power of what might seem like a more heritage search—that is, how much is involved in each and every one of those searches? Does the Minister agree that it would be helpful for the Government to undertake a programme of consultation to see whether new metrology standards could be developed? This would be helpful for consumers, businesses and developers in delivering clarity around what is involved in these new product creations.

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I agree with noble Lords that the growth of digital products and AI is one of the most fundamental policy challenges facing the Government today—all Governments, for that matter. This Bill ensures that the risks AI might bring out in physical products can effectively be covered by our suite of product and metrology regulations. I have, I hope, explained how this Bill seeks to allow product regulation to take account of digital products and AI without setting itself up as the regulator of those things. Consequently, I ask the noble Lord to withdraw his amendment.
Lord Holmes of Richmond Portrait Lord Holmes of Richmond (Con)
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My Lords, I thank everybody who took part in this debate and the Minister for his response. I am convinced that there will be a number of issues to discuss between Committee and Report—certainly to return to when we reach Report—but, for now, I beg leave to withdraw my amendment.

Amendment 14 withdrawn.