To ask His Majesty’s Government when they will publish the consultation on artificial intelligence legislation, and when a bill will be introduced.

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and I declare my relevant interest, as set out in the register, as an adviser to Endava plc and to Simmons and Simmons LLP and as a member of the technology and science advisory committee of the Crown Estate.

I appreciate the significant interest in the Government’s intentions for AI legislation, and I thank the noble Lord for his valuable contributions on the issue. The Government do not speculate on legislation ahead of future parliamentary Sessions, and I cannot confirm the timing of any such Bill. However, we will keep Parliament updated on the timings of any consultations ahead of bringing forward any legislation. We have remained committed to ensuring the UK and its Laws are ready for the changes AI will bring.

My Lords, when it comes to AI legislation, the position of the previous Government was largely “wait and see”; so it is with this Government. But what is really required if you are an innovator, investor, citizen, creative or consumer is clarity, consistency and certainty. Further, the excellent Ada Lovelace Institute recent research showed that 72% of those surveyed said they would feel more comfortable with AI were it specifically regulated. Would the Minister not agree that, to deliver that clarity, consistency, certainty, comfort and confidence to act, we need a cross-sector, cross-economy, right-sized AI regulation Bill right now?

I remind the House that AI is already regulated in the UK and we regulate on a context-specific approach. Our regulators can take account of the developments in AI, which are indeed rapid, and ensure that they are tailored. In addition, as noble Lords know, we have got various regulators undertaking regulatory sandboxes and the new proposal for the AI growth lab, which will look across all sectors and allow regulators to collaborate on this quite rapidly changing technological development.

My Lords, I declare in interest as chair of the Authors’ Licensing and Collecting Society and as a consultant to DLA Piper on AI policy. The first meeting of the rather grandly named Lords’ AI and copyright parliamentary engagement group takes place tomorrow. Would it not be extraordinary if the Government did not bring forward a Bill in the face of that engagement group’s conclusions and those of the industry working groups? Would any of those discussions not be rendered meaningless without a Bill next year? If a Bill does not come forward, would that not demonstrate the influence of big tech and the major technology companies on the Government?

The issues to which the noble Lord refers have, of course, been extensively debated here. One outcome of conversations during the passing of the data Act was a commitment to have these discussions. I also think it would be premature to decide the nature or timing of legislation until those discussions are completed. Like the noble Lord, I highlight the importance of the parliamentary consultations, the first of which with Peers is indeed happening tomorrow, with the two Secretaries of State.

My Lords, given the concerns that exist about the misuse of AI by pernicious actors, can my noble friend the Minister reassure the House that the Government are regularly stress-testing these threats, that we are preparing robust answers to them and that we will not therefore have any catastrophic incidents in this country? Will the lessons from the stress testing, if they exist, inform any future legislation?

I thank my noble friend for her interest in this area. I can highlight that the AI Security Institute was established to provide the Government with exactly this kind of evidence and respond effectively to emerging AI risks. It has tested more than 30 frontier models, including OpenAI, Google DeepMind, Anthropic and others, and works closely with security experts across government, including the National Cyber Security Centre and Defence Science and Technology Laboratory. This is to ensure the institute’s work informs the preparations against AI-related incidents. We are committed to ensuring the UK is prepared for the changes AI will bring, and the institute’s research will continue to inform our approach.

My Lords, several European countries, including Italy, the Netherlands and Switzerland, have recently launched their own sovereign large language models to reduce dependence on models from the US and China. Now that hardware compute capabilities are no longer an issue in this country, is it not time for the UK to start developing its own sovereign large language model?

The noble Lord asks a very good question about our sovereign capabilities. The Sovereign AI Unit’s remit spans the full AI stack, including large language models. Our priority is to secure UK access to the best models, including by deepening strategic partnerships and remaining open to backing UK companies to compete. However, we are focusing our efforts where there is greater opportunity for the UK to advance its strategic position in AI, looking across the value chain. This could mean supporting companies developing narrow models in high-impact sectors in which the UK has strengths, such as defence or drug discovery, or backing paradigm-shifting approaches in computing that can outperform incumbents.

My Lords, in September the Government announced plans for a national digital identity system—a policy that will have very profound implications for the safe use of AI, particularly agentic AI. Can the Minister confirm that the interaction between the Government’s digital identity scheme and AI systems will be explicitly included within the scope of the consultation? If not, can the Minister commit to ensuring that it is?

The noble Viscount asks about digital ID, as he highlights a proposal which was announced a few months ago. Digital ID will help make it easier for people to access the services they are entitled to and prevent illegal working. It will streamline interactions with the state, saving time and cutting frustrating paperwork. A public consultation on the digital ID will launch in the coming few weeks, to ensure the system is secure, trusted and inclusive. I will take back his specific question on the coverage of the consultation coming up.

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We will hear from the Cross Benches next, then we will go to the Labour Benches.

I thank the noble Lord. The World Economic Forum has said that dis- and misinformation is the number one threat to economic stability. Generative AI has hugely increased the scale of that threat. There is concern from AI safety groups that companies are not adequately tackling the problem. Can the Minister tell the House whether the Government will take this as seriously as they do cyberattacks?

I thank the noble Viscount for his question. Strengthening media literacy education is incredibly important: it helps people navigate the growing presence of AI-generated content and it is important in schools and further than that. Noble Lords will remember that we have welcomed the report of the independent Curriculum and Assessment Review, which recommends that children in schools should be taught how to spot fake news and disinformation, including AI-generated content, and help develop critical thinking skills to protect themselves online.

My Lords, I very much welcome the meeting that is taking place tomorrow, which came out of the commitments made by the Government during the passage of the data Bill. However, I understand that, notwithstanding the fact that the Government are not going to say what legislation they are introducing at this point, they are discussing the principles by which they will go forward. Can the Minister commit to the House that one of those principles, given the discussions we had in this House, will be that access to data, particularly around the creative industries, should be with the active consent of creators and rights holders?

My noble friend highlights one of the important points made during the passage of the Bill. The whole swathe of those discussions, both at technical level and with parliamentary colleagues, is intended to have the views of rights holders and other actors on the table, so that we can work through these at the same time as the AI developments are happening in real time.

My Lords, I note my register of interests, specifically as an adviser to SMEs in AI—VED 3, Automated Analytics and Scrumconnect—and as part of the AI APPG. Let me bring some good news to the House: the UK AI sector is booming. Nearly half of UK businesses’ resilience budgets are now going on AI, agentic AI and technology. This investment been supported by the UK Government’s sector-led, principles-based approach to AI regulation, designed to foster innovation and ensure safety. As the Minister confirms, I hope this flexible model will continue and be central to our strategy. Is the Minister aware that recent analysis shows that the EU’s AI Act has contributed to a 20% decline in AI formations in the region, and up to a €500,000 annual compliance cost for high-risk systems, disproportionately affecting SMEs and deterring investment—outcomes the UK has wisely avoided?

The noble Lord makes an extremely good point about the way in which we regulate. The UK has a bespoke approach. It is obviously important that we continue to work with other countries, as AI development is not something that happens only in the UK. Therefore, there is an element of needing to talk to the US and the EU, for example, about the developments. The noble Lord is absolutely right that our approach here is designed to safeguard security, build trust and get the economic benefits for the people of the UK.