The UK government has announced a sweeping new blueprint for artificial intelligence (AI) regulation aimed at accelerating innovation, cutting bureaucracy, and driving national growth. Technology Secretary Liz Kendall unveiled the plan at the Times Tech Summit, describing it as a cornerstone of the government’s “Plan for Change” and a critical step toward responsible, pro-growth AI adoption across key industries.
At the heart of the announcement is the creation of AI Growth Labs—controlled “sandbox” environments where regulations can be temporarily relaxed under strict supervision. These testing zones will allow companies to develop and deploy AI solutions in real-world settings while maintaining oversight to ensure safety and accountability. Initial sandboxes will target sectors such as healthcare, housing, transport, and professional services.
Kendall said the initiative represents a decisive break from outdated regulatory frameworks that have “stifled enterprise and held back innovators.” She emphasized that the goal is not deregulation, but smarter regulation. “We want to remove the needless red tape that slows progress so we can drive growth and modernize the public services people rely on every day,” she said. “This isn’t about cutting corners—it’s about fast-tracking responsible innovations that will improve lives and deliver real benefits.”
The plan envisions AI-driven efficiencies across multiple areas of public life. In healthcare, AI tools could help the NHS cut waiting times and support frontline staff. In housing, AI-assisted planning could reduce approval timelines—from the current 18 months and 4,000 pages of documentation—to help achieve the government’s goal of building 1.5 million new homes by the end of Parliament.
A £1 million pilot fund will also support the Medicines and Healthcare products Regulatory Agency (MHRA) in developing AI-assisted tools for drug discovery and clinical trial assessments.
Industry leaders have praised the initiative as a major step toward agile, innovation-friendly regulation. TechUK called the AI Growth Lab “a strong, positive step toward a pro-growth regulatory approach,” while investors and AI founders said the move will make the UK more competitive in the global AI race.
The government will now launch a public consultation on how best to structure and govern the Growth Labs, ensuring strict licensing, strong safeguards, and public trust remain at the center of the UK’s evolving AI ecosystem.
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