We recently hosted an event at the House of Lords in collaboration with MDRx, a technology consultancy, on what a future Labour government’s potential approach to artificial intelligence (AI) might look like, and what its implications for productivity in both the private and public sectors could be. Attendees included top entrepreneurs innovating in AI, venture capital investors and policy experts. Here’s MDRx’s write-up of the event.
One of the key takeaways was that neither Labour nor the Conservatives have a clear and coherent agenda on AI yet. This is largely because AI is a novel technology with still-unclear potential. However, overall, AI is an opportunity to enhance public services without significant increases in spending.
Getting the fundamentals right
Our keynote speaker, Benedict Macon-Cooney, who is the Chief Policy Strategist at the Tony Blair Institute (TBI), highlighted the need to view AI as an opportunity to fundamentally re-imagine the state. As TBI’s recent report, Governing in the Age of AI, emphasised, greater adoption of this technology within government should be seen as a landmark reform to how we are governed and how we make use of public services.
However, this would also require getting the fundamentals right. For startups to innovate, grow and work as a partner with government, they need:
Access to capital: For instance, by reforming capital markets to provide better funding opportunities.
Access to talent: For instance, by reimagining the immigration system to attract and retain skilled workers.
Access to government: For instance, by reforming procurement to make it easier for AI companies to sell their products and services to the government.
Giving entrepreneurs a voice
To achieve these objectives, a future Labour government needs to listen more closely to Britain’s entrepreneurs. Our discussion showed that founders of growing businesses do not feel heard. Many highlighted that policy debates are dominated by larger technology firms, most of which come with an agenda not necessarily aligned with startups. These big players have the resources to ensure their voices are heard, whereas entrepreneurs are more fragmented and lack direct communication channels with policymakers.
Attendees also raised concerns about the readiness of the UK’s regulators to create effective AI frameworks. They pointed out that regulatory bodies are underfunded and lack the necessary expertise. This gap poses a significant challenge to developing robust AI policies that can keep pace with technological advancements.
Balancing risks and opportunities
However, the founders in the room were pleased to see the recent shift in focus from government – with a greater emphasis on fostering AI innovation and opportunity, as opposed to only safety. This change is seen as crucial for making the UK a hub for AI development and entrepreneurship.
Sian Rodway, Chief Operating Officer at MDRx, discussed the balance needed in regulating AI. While acknowledging the potential risks associated with AI, such as ethical considerations and data privacy concerns, she highlighted the significant opportunities AI presents. Rodway argued that the UK needs to remain an attractive destination for innovators, where they can build and grow their companies. Striking this balance will be essential for sustaining economic growth and ensuring the UK remains competitive globally.
A collaborative partnership for future growth
Our event concluded with a discussion among attendees, who agreed that while AI has immense potential to transform productivity, achieving this requires a concerted effort from all stakeholders. Reforming capital markets, immigration policies, the education system, and procurement frameworks are strategic imperatives for securing the UK’s future in AI innovation. By addressing these areas, a future Labour government can support a thriving AI ecosystem that benefits both the private and public sectors.