The UK government has set out a new blueprint for AI regulation to encourage innovation in a safe, controlled environment.

Under the plans, AI Growth Labs will allow companies to test new AI products in real‑world conditions.

Ministers said they will provide a sandbox environment, where specific regulations are temporarily switched off or relaxed under supervision.

The initiative will give organisations in sectors such as healthcare, transport and professional services access to safe, controlled testing environments.

According to the government, the move will accelerate the responsible development and deployment of AI, with potential benefits ranging from robotics in advanced manufacturing to better outcomes for patients.

AI applications have the potential to improve people’s lives, and the government said the AI Growth Lab will pilot responsible AI that might otherwise be held back by regulation, generating real‑world evidence of impact.

It added that close collaboration between businesses and regulators is already delivering benefits for the public.

A sandbox led by the Information Commissioner’s Office helped age‑verification firm Yoti refine its age‑estimation technology to keep young people safer online, while another trial supported FlyingBinary in developing online services for mental health patients.

“To deliver national renewal, we need to overhaul the old approaches which have stifled enterprise and held back our innovators,” said technology secretary Liz Kendall. “We want to remove the needless red tape that slows progress so we can drive growth and modernise the public services people rely on every day.

“This isn’t about cutting corners – it’s about fast‑tracking responsible innovations that will improve lives and deliver real benefits.”

Earlier this month, the government revealed that specialist AI technology helped to speed up its decision to abolish the Water Services Regulation Authority (Ofwat).

The tool, called Consult, was used to sort over 50,000 responses into key themes, making the Independent Water Commission (IWC) analysis more efficient and effective.

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