TL;DR: The UK government has confirmed it will not pursue a comprehensive AI bill, instead breaking AI-related legislation into smaller, targeted measures as priorities shift from regulation to economic growth.

The Policy Reversal

When Labour took power in 2024, Prime Minister Keir Starmer promised “stronger” AI regulation, with the party manifesto committing to “binding regulation” on frontier AI companies. Tech Secretary Liz Kendall has now confirmed ministers are no longer looking at a “big, all-encompassing bill” on AI.

This represents a significant shift from the UK’s earlier position of warning the world about runaway AI to embracing it as, in Starmer’s words, “the opportunity of this generation.”

What Changed

Several factors drove this policy reversal. A dinner with Google DeepMind CEO Demis Hassabis reportedly opened Starmer’s eyes to AI’s potential for transforming public services. The Matt Clifford “AI Opportunities Action Plan” warned against copying more regulated jurisdictions.

The return of Donald Trump to the White House also played a role. The US administration viewed attempts by foreign regulators to constrain AI development as threats to national security. The UK signed a Technology Prosperity Deal with the US in September, though this was put on ice in December pending trade concessions.

Domestically, powerful “tech peers” in the House of Lords threatened to hijack any tech bill to force concessions on AI and copyright issues.

The New Approach

Instead of comprehensive legislation, the government plans targeted measures:

  • Banning nudification apps through the Violence Against Women and Girls Strategy
  • Reviewing AI chatbots through the Online Safety Act
  • Legislation for AI Growth Labs where companies can test products

The team in Kendall’s department looking at frontier AI regulation has been reassigned.

Public Opinion Gap

Polling by the Ada Lovelace Institute shows 9 in 10 Britons want an independent AI regulator with enforcement powers. “The public wants independent regulation,” said Director Gaia Marcus, noting they “prioritise fairness, positive social impacts and safety” over economic gains.

For UK businesses, this creates a regulatory environment that prioritises innovation over governance, but leaves questions about long-term AI safety frameworks unanswered.

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