Artificial Intelligence: Regulation

Lord Holmes of Richmond Excerpts

Tuesday 24th October 2023 Lords Chamber

[Viscount Camrose (Con)]

The Independent Review of the Future of Compute, which we accepted in its entirety, guided us to commit £900 million initially to buying compute. We have confirmed the purchase of an exascale system in Edinburgh as well as the UK’s soon-to-be most powerful supercomputer, in Bristol. There will be further announcements on this as part of the summit next week. The use of NHS data is subject to not only stringent contractual requirements but, already, stringent regulations about data privacy.

[Lord Holmes of Richmond (Con)]

My Lords, does my noble friend agree that we need far greater public engagement and public discourse around AI? Is he aware of the alignment assemblies used in Taiwan to such good effect? Will he consider taking a similar approach to such benefits in the UK?

[Viscount Camrose (Con)]

I very much agree with my noble friend that we need maximum public acceptance of AI. However, that must be based on its trustworthiness. That is why we are pursuing, among other things, the global AI Safety Summit next week. I am not familiar with the Taiwanese approach but will look into it, and look forward to discussing it in due course.

Beyond Digital (COVID-19 Committee Report)

Lord Holmes of Richmond Excerpts

Wednesday 6th September 2023 Grand Committee

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to follow the noble Lord, Lord Bilimoria, with the wealth of experience that he brings to your Lordships’ House. It is also a pleasure to take part in this debate and, in doing so, I declare my financial services and digital interests as adviser to Ecospend and Boston Ltd, respectively.

Along with other noble Lords, I congratulate fulsomely the noble Baroness, Lady Lane-Fox of Soho, on the way that she introduced this debate and indeed the way that she chaired this committee at an unprecedented time. Almost every recommendation in the report rings true and, although we have waited two years for this debate, they are as relevant, fresh and important today as when they were inked just over two years ago.

I also congratulate the noble Baroness, Lady Lane-Fox, on everything that she has done in terms of digital inclusion, not least Doteveryone. In many ways, “doteverything” is what I would like to cover in my comments this afternoon. When it comes to digital and “doteverything”, it if does not include “doteveryone”, what is the point? Why are we doing it? As other noble Lords have commented, it is about how we thread so optimally those golden threads of inclusion and innovation—the golden threads that enable talent and technology to thrive. That is what this report really brings to bear. This should be the golden thread that runs through all our post-Covid build-back. If we do not do it in an inclusive manner, it is not really worth doing at all. Perhaps the greatest and saddest learning from the pandemic was that, although we were all in it, we certainly were not all in it together. We need to ensure that what we do going forward is very much altogether—altogether different, altogether better and altogether inclusive.

To bring this to light, I will focus on the three areas of financial inclusion, digital inclusion and new technologies for public good. In terms of financial inclusion, we had issues before the pandemic, but there are two examples where the pandemic exacerbated financial exclusion. First, we suddenly saw a rollout of card payment machines that had no keypads; they were flatscreen, thus completely inaccessible to me and millions of other people. It was another example of a phenomenon that has gone on for decades where health and safety—or something presenting itself as health and safety—was used to trump and wash away inclusion. I therefore ask my noble friend the Minister: in terms of everything that we do, products that are produced and everything that the Government have responsibility for, will it all be rolled out in an inclusive manner? Indeed, companies that bring out products or services that are inaccessible and not inclusive should rightly feel the full force of equalities law upon them as a consequence.

Similarly, there is the hybrid nature of not just work and education but life. At the height of the pandemic, we saw cash withdrawals decline by more than 80% in London and yet by less than 40% in other parts of the country. This demonstrates that cash still matters, materially, to millions. Will the Government consider designating the UK cash network as critical national infrastructure in terms of both resilience and ensuring financial inclusion?

So many of the recommendations in the report thread together what are often wrongly described as the “hard” and “soft” elements of digital inclusion. I prefer to call them the “material” and “human” elements. To echo my friend, the noble Lord, Lord Bilimoria, when will every single household, business and part of the United Kingdom have effective, reliable broadband connectivity? Without it, more than ever, it is now a case of not just being unable to get online but being socially and economically excluded.

I will bring this to life with the example of a payment app. If someone holds in their hand the best payment app ever developed, they may have great connectivity but without that social connection or the digital skills—the human part of it—they will not be able to make a payment. With the selfsame app in the hands of someone with those digital skills but without connectivity, that payment will also not be made. Will my noble friend the Minister confirm that the Government are looking at the material and human elements and mapping this across the country to understand how we can enable true connectivity that combines both critical elements?

We saw examples of farmers being forced to go to McDonald’s to do their VAT returns. The Government have often said that, if there are difficulties with connectivity, you can go to your high street or library, but does my noble friend think it acceptable for farmers and other businesses to have to do something as personal as their tax declarations and returns and VAT returns in a public space such as McDonald’s or even a public library?

I move to technology for public good. It is interesting how, even in the midst of such a horrific situation as the pandemic, opportunities came through, particularly for disabled people. I was asked in 2018 to do a review for the Government on opening up public appointments for disabled people to the boards of public organisations responsible for well over £200 billion of our money. We have shameful representation of disabled people on those boards. One of the recommendations I made was that, at application, interview and onboarding, different and, at the time, novel approaches such as video interviews should be considered. This was seen as radical. Now, thankfully and positively, it has very much become the norm.

This demonstrates the opportunity we have for technology not to divide but to bring together and connect for positive good. I wrote a report in 2017 on distributed ledger technology for public good. Would it not be such a positive post-pandemic build-back for the Government fully to engage with the opportunities of distributed ledger technology? For example, currently the NHS spends 25,000 doctor days on ensuring the credentials of our medics. This is critical—you want to know that the person you are consulting or who is operating on you has the training, skills, qualifications and credentials they say they have—but with a relatively straightforward DLT solution those 25,000 doctor days could be converted into 25,000 doctor days of care. That would be a small but incredibly impactful and positive element to come out of post-pandemic planning. Are the Government looking at all the use cases for distributed ledger technology for public good?

On AI, as the noble Baroness, Lady Lane-Fox, rightly identified, it is all around us right now—it is everything everywhere, all the time—and we need to ensure that that is part of the positive build-back story. I was fortunate enough to attend the Turing summit earlier this year, where the institute had all its top researchers—its post-docs—doing 90-second presentations to pitch for funding for their particular idea. All the ideas were innovative and all had a social purpose—a people purpose. The winner was looking at how to scan early for ovarian cancer. What brilliant work is happening with our researchers at our universities up and down the country. Can my noble friend the Minister comment on whether the Government are gaining all the right connections from the academic powerhouse that we have, not just in this city but right across the country?

To conclude, the Covid pandemic was a once-in-a-100-year event, but we are currently in the midst of another pernicious and avoidable epidemic that is summarised best as: we have never been more connected, and yet, in that state, we are in the midst of an epidemic of loneliness. Can my noble friend the Minister comment on what the Government are doing to use both technology and human interaction to ensure that we move from this, for our young people and all our people? Ultimately, although video conferencing was successful during the pandemic, and it has a purpose, there is nothing better than the essential quality of the human relationship. Everything must be seen as relational, not transactional, and if we can weave so optimally those golden threads of inclusion and innovation, I believe that we can drive economic, social and psychological good. We can do it, we must do it, and I believe that we owe it not least to all those who tragically did not make it through.

Advanced Artificial Intelligence

Lord Holmes of Richmond Excerpts

Monday 24th July 2023 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, I thank the noble Lord, Lord Ravensdale, for securing this debate and congratulate him on the way he introduced it. I declare my technology interests as set out in the register.

When we come to consider the regulation of AI, it is first worth considering how we define it. There are multiple definitions out there, but when it comes to regulation, it is best not to draw that definition too tightly and perhaps better to concentrate on those outcomes that are intended and the challenges that we are seeking to avoid. Ultimately, AI is just the deployment of data, and it is our data, so a central pillar must be the explainability of how the AI comes to any decision, and how we should choose to regulate to achieve that level of explainability, which should be for the citizen understanding, not just from a software engineer’s perspective. Does the Minister feel that synthetic data offers a number of potential solutions, not least to the privacy questions, and what would the Government consider in terms of how they would go about the QA-ing and indeed the regulation of such synthetic data?

As has already been discussed, in that it is our data, it is right that we, and indeed every citizen, should have a say—should have a piece in this AI play. It will come down to trustworthiness, and everything that the developers, designers and businesses have to do to make this not trusted but trustworthy.

What more do the Government intend to do to have this level of public debate and discourse around such an existential issue? Similarly, does he agree that it would make sense to consider an AI officer on the board of all businesses of a certain size? I put an amendment to this effect down to the then Financial Services and Markets Bill, as AI is obviously already pervasive across our financial services industry. Would it not make sense for the Government to consult on having AI officers on the board of all businesses?

We have already heard a lot about ChatGPT—you cannot go a day without hearing about it—but what about the energy consumption that it took to train ChatGPT and for its continued use? Has my noble friend considered what the Government might wish to conclude on energy consumption of these AIs? Perhaps it would be better if photonic calculus was used, rather than more traditional math, to massively reduce the energy consumption of these systems.

Similarly, if the public are to be enabled, it will take much more than regulation. Does my noble friend agree that we should look at a complete transformation of our education system: data literacy, data competency, digital competency and financial AI literacy through every beat point of the curriculum. Would that not be a good thing for the Government to go out to consult on over the summer and the autumn?

If we are to make a success of AI—and it is in our human hands to do so—it will be only through the engagement and enablement of every citizen in every society, and understanding how to have that innovation in everybody’s human hands. If we stuff this up and it goes wrong, that will be not a failure of the AI or the technology but a human failure: of legislators, regulators, businesses, corporates and all of us.

What are the plans for the summit this autumn? How broadly will people be engaged? What will be the role for civil society at that summit? Finally, can my noble friend set out briefly what he sees as the key differences between the approach of the UK to AI and that of other jurisdictions, not least the European Union?

We can make a success of what we have in front of us, if we are rationally optimistic, understand the risks and step over the huge hype cycle of both unrealistic potential and overly described fears. We need to consider AI as incredibly powerful—but an incredibly powerful tool in our human hands, where we can grip it and make a success economically, socially and politically for all our citizens.

Electronic Trade Documents Bill [HL]

Lord Holmes of Richmond Excerpts

Consideration of Commons amendments
Wednesday 19th July 2023 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, I add my thanks to the Minister for moving these amendments from the Commons. He has shown remarkable consistency with the words of his honourable friend Mr Scully in the Commons—I think word for word it is what he said, so that is excellent. I see other members of the committee here; I am only sorry that the noble and learned Lord, Lord Thomas of Cwmgiedd, is not here to see the final process and see this legislation go forward.

I welcome these amendments, because it means that the legislation will cover the whole United Kingdom, and that the exception power in Clause 5 will operate across the UK. Could the Minister say whether anything is in contemplation under Clause 5 to be excepted in using that power across the UK?

I very much agree with what the noble Lord, Lord Bassam, said about a plan for implementation. This is a much more important Bill than it appears at first sight, and we should really speed it on its way in implementation terms.

[Lord Holmes of Richmond (Con)]

My Lords, I rise briefly to support the amendments as set out. In doing so, I declare my technology interests as set out in the register.

This is the most important Bill that no one has ever heard of. It demonstrates what we can do when we combine the potential of these new technologies with the great good fortune of common law that we have in this country. I particularly support the comments made by the noble Lords, Lord Bassam and Lord Clement-Jones, about the Government’s plan for implementation. Although it is obviously critical that we get Royal Assent to this Bill as soon as possible, that is really where the work begins. As my noble friend the Minister knows, the Bill is rightly permissive in nature; it cannot be that, having done all the work through both Houses of Parliament, the Bill is then just left on the shelf. There needs to be an active plan for implementation, communicating to all the sectors and all the organisations, institutions and brilliant businesses in this space to seize the opportunity that comes from electronic trade documents. Does my noble friend the Minister agree— and will he fill out some more detail on what that implementation plan is?

[Viscount Camrose (Con)]

I thank all three noble Lords who have commented. The noble Lord, Lord Bassam, and others have rightly raised the issue of how we implement the provision, and I could not agree more strongly that the prospect of such a brilliant and transformational Bill gathering dust on a shelf is rather depressing; it would be a great waste.

Industry is very keen to implement this itself, but it is on us to track how that is going and ensure that it does. On how exactly industry goes about it, I would like to write to noble Lords to explain that, because I very much recognise the importance of the question.

With respect to any actions envisaged in Clause 5, nothing is currently envisaged.

Science and Technology Superpower (Science and Technology Committee Report)

Lord Holmes of Richmond Excerpts

Wednesday 7th June 2023 Grand Committee

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this debate, as it was to be a member of the Science and Technology Committee when we undertook this inquiry. It is a pleasure to follow my friend, the noble Baroness, Lady Brown, who eloquently set out the extent of the report’s findings so effectively. I echo her in thanking all the staff of the committee who did such excellent work supporting our inquiry. I declare my technology interests as set out in the register.

As the noble Baroness, Lady Brown, did such an effortless job in covering the ground of the report, I would like to describe how I see our findings in five words. We need all five: clarity; long term; international; investment; and implementation. Perhaps the most powerful phrase of all came from Sir Patrick Vallance when he talked about the need for a laser focus on implementation. If we take those five words—those five pillars—what might that look like in reality?

The noble Baroness, Lady Brown, rightly highlighted the importance of regulation and the Vallance review into regulation in this area. I believe that the positive power that regulation can have to support innovation and technology in this country should not be underestimated for one second. We can look recent examples such as what we with the telecoms industry to regulate to enable mobile telephony in this country and what we did even more recently with the fintech sandbox to effectively enable in a regulatory environment so many scale-ups and start-ups to come through. What is the best measure of success for that regulatory sandbox? It has been replicated in well over 50 jurisdictions around the world. That is the positive potential that we have.

Let us put the “science and technology superpower” phrase to one side for a moment. We have, in truth, a real opportunity in the UK for science, technology and innovation. That comes from the great good fortune of the combination of common law, the financial centre in London, the English language, geography, time zone and many other factors. None of that should in any sense take us into a state of believing that we are a superpower, but we should fully appreciate the possibilities that it gives.

What might that look like with a particular sector? AI is much talked of at the moment, but if we can get safe and secure rules, it could enable positive growth in this country. We heard from the Prime Minister only days ago along the lines that if we are to grapple with and solve the problem of AI, we must do this together, not just the companies, but countries. That sounds pretty positively international to me, and that has to be the right approach.

Will the Minister say where specific sectoral strategies, such as the AI strategy, fit into an overall coherent approach across all sectors, all areas and all opportunities, not least, as we have already heard, semi-conductors but quantum and DLT, to name just three? How do we enable all this to fit together? I believe that so much comes down to having innovation right through every Whitehall department, a golden thread of innovation running through every single department. It is that cross-Whitehall working point again. I believe that the difficulty is that we have only ever had cross-Whitehall working twice, once for the Olympic and Paralympic Games and a second time for Covid. It has happened only twice, but look at the results that we had when we got that cross-Whitehall working. We had the very best of our Civil Service and the very best of our state. The possibilities are immense for the United Kingdom but, ultimately, what are science and technology superpowers? They are not nations; rather they are connection, collaboration, coming together and co-creation. That is what we need to be focused on. Tout le monde, if you will. I think we all must will it.

Data Protection

Lord Holmes of Richmond Excerpts

Thursday 23rd March 2023 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, I welcome my noble friend to the Front Bench and declare my technology interest. Does he agree that data is completely pervasive and all around us, that data literacy is critical and should be taught from the kindergarten right through life, and that data privacy is a key element of such data literacy teaching?

[Viscount Camrose (Con)]

I thank my noble friend for his question and pay tribute to his well-known expertise in the area. Public confidence in the huge mass of data and in the changing systems and tools that use it is absolutely key. This goes into AI, cybersecurity and a range of other areas. That is why education for public confidence will be a key part of the Government’s strategy.