AI Growth Lab

Baroness Jones of Moulsecoomb Excerpts

Thursday 26th March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

Building on both noble Lords’ recent questions, we need to look across the whole of the economy. There will be a great amount of private investment going in, as well as investment from our public financial institutions. We are also thinking about how we can harness the benefit of sovereign AI here in the UK, and we are making a particular effort to think about where our sovereign AI fund is going to invest, so that the UK can benefit British frontier AI companies, not seeking total self-reliance but to build and defend comparative advantage.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I am no AI expert, as my colleagues will tell you, but I do know something about environmental devastation, and AI growth is going to impact very strongly on environmental issues. So, as well as the huge AI Bill that my noble friend Lord Holmes is suggesting happens, is there going to be new legislation to actually make sure that we achieve our climate goals?

[Baroness Lloyd of Effra (Lab)]

The purpose of the AI growth lab is to provide a sandbox so that we can harness some of the novel uses. Those novel uses might for example be in energy efficiency, or water efficiency. There are many ways in which AI can be harnessed to minimise environmental impacts. We are cognisant of the potential sustainability challenges from the energy demands of data centres or other areas. That is why we have set up the AI energy council, co-chaired by the Secretaries of State for DSIT and DESNZ, bringing leaders together to think about how we move forward sustainably and take up the promise of AI, while keeping to our net-zero goals.