KAREN JOY BACUDO Finance Editor
The UK government has set out a new Regulating for Growth Bill as part of the legislative agenda in the latest King's Speech.
The Bill aims to reshape how regulators oversee fast-moving sectors, including artificial intelligence and other digital technologies. Ministers have presented it as a response to concerns that existing rules and agencies are not adapting quickly enough to innovation.
Under the plans, departments would gain new powers to revise or repeal regulations deemed outdated or burdensome. The package would also expand the use of regulatory sandboxes, allowing companies and public bodies to test new products and services under supervision.
Legal and technology sector figures broadly welcomed the proposals, while warning that wider economic reforms must match them. Commentators pointed to pressures on smaller firms, as well as the need for strong data governance and international coordination on AI.
Edward Garston, a partner at Spencer West, said the Bill could improve the UK's appeal to high-growth technology ventures.
"It was encouraging to hear the announcement of the 'Regulating for Growth Bill', which seeks to streamline and update the regulatory environment. Even the government admits our regulatory environment has failed to keep pace with a world of accelerating change, and if this Bill is successfully adopted, then it could enhance the UK's standing on the world stage in attracting AI and other emerging technology startups."
He also warned that broader economic pressures continue to weigh heavily on SMEs across the UK economy.
"But this initiative alone is unlikely to be the shot of adrenaline that SME businesses so desperately need, as they battle the many headwinds of increased employment costs and employment rights, business rates, and some of the highest industrial energy costs across the developed world," said Garston.
Technology executives focused on the role of regulatory sandboxes in the government's plans, arguing that controlled testing environments could help speed the move of AI systems from pilots into mainstream use.
"Businesses will welcome the Regulating for Growth Bill and its recognition that regulation must evolve alongside technological innovation. The right regulatory framework can protect consumers and give organisations the confidence to innovate, invest and scale emerging technologies such as AI. Regulatory sandboxes have the potential to become one of the UK's most important tools for turning AI ambition into economic impact," said Greg Hanson, Group Vice President and Head of EMEA North at Informatica.
Hanson said regulatory sandbox environments could help businesses and public services accelerate AI innovation by enabling real-world experimentation, but stressed that organisations also need trusted, high-quality data to scale AI systems beyond the testing phase confidently.
"Giving businesses and public services sandbox environments to test and experiment with AI in real-world conditions will help drive innovation. However, organisations can only test and scale AI confidently if they have trusted context around the data feeding their AI systems."
"That means understanding where data has come from, how it's connected, if it's complete, and whether it can be trusted. Without that, they lose confidence in AI outputs, leaving organisations stuck in experimentation rather than delivering real value at scale," said Hanson.
Harshul Asnani, President and Head of UK and Europe at Tech Mahindra, said the debate around AI regulation was shifting.
"The conversation around AI is now moving away from ambition to accountability. The Regulating for Growth Bill reinforces the importance of creating the right frameworks to support that shift."
Asnani said the UK's proposed regulatory reforms could help accelerate AI adoption by creating more flexible environments for experimentation while still maintaining safeguards around trust, accountability and oversight.
"Measures such as regulatory sandboxes are an important step. The ability to innovate faster while maintaining public trust is especially important for the public sector, and striking the right balance between innovation and assurance will be critical if the UK is to realise AI's long-term economic and societal value."
"But effective AI governance cannot happen in isolation. AI is a global technology; its long-term success will depend on the UK's ability to collaborate across borders, industry and regulators to establish standards, shared safeguards and consistent oversight. That collective approach will be essential to turning AI's potential into meaningful, sustainable impact."
Industry leaders said the UK's proposed regulatory reforms could help accelerate AI adoption by creating more flexible environments for experimentation while still maintaining safeguards around trust, accountability and oversight.
"Measures such as regulatory sandboxes are an important step. The ability to innovate faster while maintaining public trust is especially important for the public sector, and striking the right balance between innovation and assurance will be critical if the UK is to realise AI's long-term economic and societal value.
"But effective AI governance cannot happen in isolation. AI is a global technology; its long-term success will depend on the UK's ability to collaborate across borders, industry and regulators to establish standards, shared safeguards and consistent oversight. That collective approach will be essential to turning AI's potential into meaningful, sustainable impact."
The comments reflect broader industry calls for internationally aligned AI governance frameworks as governments and regulators race to support innovation without weakening transparency, consumer protections or operational resilience.