Potential pros and cons of the UK government's AI growth labs proposal
29/10/2025 | IAPP
An IAPP article considers the potential advantages and disadvantages of the UK government's consultation seeking feedback on laws that inhibit the growth and adoption of artificial intelligence (AI) through its AI Growth Labs (regulatory sandboxes) proposal. These sandboxes will allow companies to test products while simultaneously testing the rules themselves to determine what is unnecessarily restricting innovation.
Technology Secretary Liz Kendall stated the goal is to remove "needless red tape" and fast-track responsible innovations to modernise public services and drive economic growth.
The article cites experts, like Eduardo Ustaran, who noted this measure is significant because the government is focusing on seeing what existing, technologically neutral laws are not working, rather than introducing new primary legislation. However, the approach has raised concern. Eleonor Duhs, a data and privacy partner, warned that "switching off" enacted legislation, even temporarily, sets a problematic precedent that could compromise the UK's constitution and its international data adequacy status with the EU. Despite these concerns, the government has stressed that any changes will respect "red lines," including fundamental rights, consumer protections, and workers' protections.
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