UK weighs tougher AI rules and hints at Budget measures

AI minister Kanishka Narayan has suggested that discussions with John Healey could lead to an announcement in Wednesday’s Budget, without providing details. Speaking on the BBC’s Political Thinking podcast, he said Britain must build domestic technology and strengthen state capabilities rather than rely solely on regulation. He warned that dependence on other countries for essential technology weakens Britain’s international leverage.

Ministers are considering mandatory reporting of serious incidents involving autonomous AI systems and stronger powers to test advanced models before release. Britain has largely relied on existing regulators, while the European Union has introduced dedicated legislation. The government’s Council for Science and Technology has warned that Britain risks becoming a “high value AI customer” without greater domestic investment. A Sovereign AI Fund has been established, but industry figures question whether its funding is sufficient to compete with US technology giants.

Narayan also said advanced AI models had identified 500 previously unknown cybersecurity vulnerabilities across parts of the public sector. Comparing AI’s potential economic impact with the Industrial Revolution, he warned against a similarly painful transition for workers. His comments come as Barclays announced job cuts under an efficiency drive involving AI.