AI Growth Lab

Lord Holmes of Richmond Excerpts

Thursday 26th March 2026 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask His Majesty’s Government what plans they have to bring forward any legislation required to establish their proposed AI growth lab.

[Lord Holmes of Richmond (Con)]

I beg leave to ask the Question standing in my name on the Order Paper and declare my interests as set out in the register as adviser to Endava plc, the Crown Estate, Submer Ltd and Simmons & Simmons LLP.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

The AI growth lab is a regulatory sandbox designed to accelerate AI innovation and adoption across the UK in a supervised and safe setting. In the recent call for evidence, we asked for views on how best to operationalise the AI growth lab. Responses are being carefully considered in ongoing policy development and will inform forthcoming legislation that we intend to bring forward.

[Lord Holmes of Richmond (Con)]

My Lords, the AI growth lab is an excellent intervention. We have a great tradition in this country of sandboxes, and this follows on from there. It will require primary legislation, and it is not alone in that: there is an increasing number of areas where the Government say they want to act in terms of AI, all of which will require primary legislation. Rather than taking a bit by bit, Bill by Bill approach, does the Minister not agree that clarity, consistency and coherence will be better served by bringing forward a cross-sector AI Bill that would be good for the citizen, the creative, the consumer, the innovator and the investor? Will the Government take the opportunity of the upcoming King’s Speech to bring forward such a Bill?

[Baroness Lloyd of Effra (Lab)]

The noble Lord has a great deal of expertise in this area and, as he knows very well, AI is a technology that has many different applications. We are committed to a context-based regulatory approach where most AI systems are regulated at the point of use. As a novel technology, it can develop in areas which cross regulatory barriers or give particular opportunities for new product and service development. That is the reason for the AI growth lab, which will model a new approach to regulation, with the power to make rapid temporary amendments to regulation to safely test and prove application. As the noble Lord says, the UK’s experience of sandboxes is emulated around the world.