UK AI Growth Lab: Call for Evidence (closed January 2026)

Issued by

UK Department for Science, Innovation and Technology

liveUK-AIGLSUpdated October 2026 · Last verified October 1, 2026

The UK Department for Science, Innovation and Technology (DSIT) issued a call for evidence on the proposed UK AI Growth Lab on 21 October 2025, which closed in early January 2026. The government then announced the Regulating for Growth Bill on 13 May 2026 to create sandboxing powers. The sandbox would let firms test AI under relaxed or modified rules. Options include central government administration across sectors or individual sandboxes managed by lead regulators. The aim is reduced compliance barriers with continued oversight.

Applies To

Large enterpriseSMBPublic sectorAI developerAI deployer

Overview

The AI Growth Lab call for evidence, issued on 21 October 2025 by the UK Department for Science, Innovation and Technology (DSIT), set out two competing governance models for a national AI regulatory sandbox (supervised testing under relaxed rules). Under the central government model, DSIT or a designated central body would coordinate sandbox operations across sectors, providing a single point of entry for applicants. Under the regulator-led model, a sector-specific lead regulator would be appointed for each sandbox, bringing sector expertise to decisions on which rules to relax. Participants admitted to either model would operate under time-limited, targeted relaxations or adaptations of existing regulatory requirements, allowing real-world testing of AI systems that would otherwise face uncertain or prohibitive compliance obligations. The consultation seeks stakeholder input on criteria for admission, duration of sandbox participation, safeguards for affected third parties, and how learnings will inform future regulatory design. The call for evidence closed in early January 2026. In the King's Speech on 13 May 2026, the government announced a Regulating for Growth Bill to create cross-economy sandboxing powers and set up the AI Growth Lab. The Lab needs that primary legislation before it can operate.

Key Requirements

•Organisations wishing to participate must apply and meet admission criteria to be defined following consultation closure.
•Sandbox participants will operate under targeted, time-limited regulatory modifications specific to the AI system under test.
•Two governance models are under consideration: centrally operated by government or led by a designated sector regulator per sandbox instance.
•Safeguards for consumers and third parties affected by sandbox-tested AI systems must be maintained throughout participation.
•Learnings and outcomes from sandbox activity are expected to be shared with regulators to inform future AI regulatory policy.
•The call for evidence closed in January 2026; the Regulating for Growth Bill, announced on 13 May 2026, would create the Lab.

What Your Organization Must Do

→Track the Regulating for Growth Bill, announced 13 May 2026, since the Lab needs it before operating.
→Brief leadership that no binding duties apply now, as the call for evidence closed in January 2026.
→Identify AI products whose rollout is blocked by uncertain or costly compliance obligations today.
→Prepare a shortlist of rules you would ask to be relaxed, with proposed consumer safeguards.
→Decide whether a central DSIT entry point or a sector regulator route better suits your markets.
→Plan how you would record and share test learnings with regulators if admitted later.

Playbook Guidance

Step-by-step implementation guidance for compliance teams.

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Frequently Asked Questions

What is the UK AI Growth Lab and how does it differ from existing AI sandboxes?: The AI Growth Lab is a proposed national AI regulatory sandbox allowing companies to test AI under modified compliance conditions. Unlike existing sector-specific initiatives, it is being designed at a national level with two competing governance models, one centrally run by DSIT and one led by designated sector regulators, giving it broader cross-sector scope.
What are the two governance models under consideration in the AI Growth Lab consultation?: The central government model has DSIT or a designated body coordinate sandbox operations across sectors as a single entry point. The regulator-led model appoints a sector-specific lead regulator for each sandbox instance to apply domain expertise to the regulatory modifications granted.
Do companies face any binding compliance obligations during the AI Growth Lab consultation phase?: No, the call for evidence closed in January 2026, and the Lab needs the Regulating for Growth Bill, announced in May 2026, before it can operate. Obligations would come only with admission to the Lab.
What types of regulatory relief can sandbox participants expect under the AI Growth Lab?: Participants will operate under time-limited, targeted relaxations or adaptations of existing regulatory requirements specific to the AI system being tested. The modifications are designed to address compliance obligations that would otherwise be uncertain or prohibitive for real-world AI testing.
Which organisations are eligible to apply for the UK AI Growth Lab sandbox?: The sandbox is meant to be open to businesses of all sizes that develop or deploy AI. Admission criteria will follow the Regulating for Growth Bill.
Are there consumer protection requirements for companies testing AI inside the UK AI Growth Lab?: Yes. Regardless of which governance model is ultimately adopted, safeguards for consumers and third parties affected by sandbox-tested AI systems must be maintained throughout participation. Companies are also expected to share test learnings with regulators to inform future UK AI regulatory policy.