Artificial Intelligence: UK Preparedness

Lord McNicol of West Kilbride Excerpts

Thursday 22nd January 2026 Lords Chamber

[Lord Leong (Lab)]

The noble Lord is right to draw attention to this matter, on which he has been a long-time thoughtful voice. All I can say is that we are investing in this sector. We have put aside £500 million to develop our sovereign AI capabilities. We are going to establish AI growth zones and AI growth labs, where companies can invest, scale and test products before rollout. We are doing a lot more and, at the same time, are leading internationally in ensuring that the safeguards are there so that the products that are rolled out are safe for everybody.

[Lord McNicol of West Kilbride (Lab)]

My Lords, I want to agree with one of my noble friend the Minister’s previous answers about opportunity. Yes, there are risks, but the UK is best placed to seize the opportunities that will come forward and the developments that will happen with AI. AI is not going to be put back in a box. How do we as a country seize those opportunities and support our SMEs, which are developing many new products that will deliver on productivity, to get the best of growth for the UK? How do we continue to support those companies that are already leading the way on that?

[Lord Leong (Lab)]

My noble friend is spot-on. Small and medium-sized enterprises are vital to AI-driven growth. The Government are supporting SMEs through targeted innovation funding and access to test-based and digital adoption programmes, alongside partnerships with research institutions. By lowering barriers to experimentation, we enable smaller firms to enhance productivity and compete more effectively. This ensures that the economic benefits of AI are shared right across the United Kingdom, fostering a diverse and resilient digital economy throughout the United Kingdom.