King's Speech Outlines Strong Growth, Data, and Cyber Plans, but Unclear if Labour Can Strike the Right Balance on Innovation

LONDON— In response to the King’s Speech, which outlines UK Prime Minister Keir Starmer’s legislative agenda under the new Labour government, the Center for Data Innovation released the following statement from Policy Analysts Ayesha Bhatti and Justyna Lisinska:

The announcements made during the King's Speech today are largely in tune with the new Labour government's manifesto, and many are welcome developments for the UK’s tech sector, but they fall short of striking the right balance on innovation.

Repeated mentions of growth bode well for the UK technology sector, with the promise of garnering greater investment in industry, skills, and new technologies, possibly with new measures to reform and build on pension investments. This is a positive sign for the future of the UK's technology ecosystem.

The introduction of the Digital Information and Smart Data Bill, which aims to boost the UK’s data infrastructure and promote data sharing, is also welcome. This new bill would introduce the much-needed reforms to UK data protection that the previous government was unable to complete, making it easier to comply with data protection obligations. Promises of a new Cyber Security and Resilience Bill also make sense off the back of cyber-attacks to the National Health Service and Ministry of Defence. However, both bills should be approached with cautious optimism until more details are released, particularly as the bills would afford even greater powers to regulators who may not be in the best position to enforce the rules.

Whilst the announcement lacked a fully-fledged AI bill, the commitment to introduce legislation that would place requirements on those developing the most powerful artificial intelligence (AI) models is troubling. To date, no country has achieved a balanced legislative approach to AI regulation that captures the need for safe and responsible AI in tandem with a pro-innovation outlook. Should Labour wish to realise sustainable growth that includes new technologies, the government will need to recognise the value of companies developing and deploying frontier AI in bringing investment and opportunity to UK businesses and citizens. These companies have the resources and expertise to push the boundaries of technology and contribute significantly to the economy. Restrictive legislation risks discouraging investment and use of AI in the UK. It is noteworthy that such measures were mentioned immediately after announcing the Employment Rights Bill, suggesting the new government may prioritize addressing fears about AI as a threat to jobs rather than opportunities to use AI to create better jobs in future legislation.

Overall, the vision outlined in the King's Speech aligns with some of Labour's key manifesto priorities, including its growth, data, and cyber plans, however, it did not fully deliver on its more concrete pre-election ambitions, such as a standalone bill on AI, or an outright ban on sexually explicit deepfakes. The new government should tread carefully as it pursues a legislative course of action for its digital agenda, ensuring it moves away from the EU approach to technology regulation, and strikes the right balance between protecting consumers and workers and supporting the UK's thriving tech sector.

Contact: Nicole Hinojosa, [email protected]