Britain's AI Minister Kanishka Narayan has challenged policymakers to prove that tighter regulation would be more effective than building domestic AI capability, marking a significant intervention in the UK government's approach to artificial intelligence governance.

Speaking across multiple events at the Labour Party's annual conference in Liverpool, Narayan argued that regulation may not be the most effective mechanism for Britain to influence AI development, while positioning the embrace of AI-related industries as the UK's best route to growth, investment, jobs and global leverage. The remarks were reported by POLITICO, and appeared particularly directed at Labour MPs who have called for legislation on AI in response to security incidents and concerns about the technology's risks.

The Case for Capability Over Regulation

Narayan framed the debate in terms of outcomes rather than mechanisms. "Actually, the thing the British public says is keep us safe and build sovereign capacity," he told attendees at the POLITICO Pub. "At any point, if regulation or legislation is the mechanism to achieve those ends, I would be the first one in the queue to push for that."

However, he challenged advocates of new legislation to articulate precisely how their proposed rules would deliver public safety and British capability. "But what is the specific idea as to how your mechanism proposed gets you to the outcome that the British public demands rightly of us?" he asked.

The intervention comes as the government has yet to meet a manifesto commitment to impose binding rules on frontier AI firms, although Prime Minister Andy Burnham has said "nothing is off the table." According to industry figures cited in the POLITICO report, multiple government departments are exploring AI legislation, though a government official confirmed no decisions have been made.

Differing Ministerial Positions on AI Strategy

Ministers in Burnham's government indicated varying levels of interventionism at the conference.

Foreign Secretary Ed Miliband struck a more cautious tone in his speech, stating: "The lesson of history is that we cannot leave it to corporations to put in place the guardrails to serve the public interest." In contrast, Business Secretary Jonathan Reynolds cautioned that the UK must strike a "noble balance," retaining access to leading models built abroad while avoiding measures that "crush economic activity." Reynolds also noted that the UK's ability to take a more flexible approach to AI regulation than the EU represented a "silver lining" of Brexit.

Narayan highlighted the need to consider regulation alongside other policy levers available to the UK, including convening countries to establish AI safety standards—a priority he said would be "center stage" when the UK assumes the G20 presidency—and building "British capability." He complained that few MPs or civil society organisations engaged with him on this latter objective.

"The thing you have to rectify is the error of the last 10 to 15 years of not having built capability," he stated at a separate event. "We have to be honest: do we want control over technology and, as a result, technology policy to a higher degree?"

Narayan repeatedly cited parliament's resistance to overhauling UK copyright rules as an example of policy trade-offs that must be confronted directly. He noted that parliament's resistance to overhauling the UK's copyright rules had hamstrung its ability to host and train frontier AI technology.

Domestic access to frontier AI is important for "geopolitical leverage and economic security," he said, according to POLITICO.

The remarks take on added weight given recent developments in US policy. The Trump Administration asked OpenAI and Anthropic to delay handing their models to the UK's AI Security Institute for testing until American testers have verified the models cannot be used against US systems. At the same time, President Trump has rejected participation in global AI agreements, instead convening tech firms to a White House luncheon where they signed a "morally binding" accord.

Industry and Research Response

Industry lobbyists in Liverpool welcomed Narayan's emphasis on domestic control and leverage over regulation. However, they expressed uncertainty about whether his approach would prevail given what was described as "febrile politics" around AI safety, particularly among backbench MPs and the general public.

Michael Birtwistle, associate director at the Ada Lovelace Institute, an independent AI research center, offered a sceptical assessment. He argued that the government's position—willing to regulate when needed but refusing to commit to an AI bill—"seems to be setting an unreachable bar for legislating." "It's difficult to see what more evidence is needed to act," he said.

Public Anxiety and the Case for Investment

Ministers acknowledged that public anxiety about AI is growing, yet insisted the UK must not lose sight of the technology's benefits. Chancellor John Healey called AI "the greatest innovation of our time" and "the driving force with which this new age of industrialization can be built," vowing to "make sure that Britain wins in this AI revolution." Reynolds echoed this urgency: "I refuse to let Britain be a country that generates the great ideas, only for other countries to build and scale them."

Narayan told POLITICO that the infrastructure and supply chains linked to AI represent the UK's best opportunity to attract capital and create high-skilled jobs. He also flagged concerns about replicating a US-style political backlash to data centre expansion, saying the government would address public concerns while maintaining "a minimal level of sovereign capability."

In his new Cabinet role, Narayan described his task as "about winning the politics" of AI, rather than just executing policy. Although Prime Minister Burnham addressed AI in his main conference speech, emphasising the UK's strengths and potential for job creation, AI did not dominate his remarks, which focused predominantly on social care. According to an official granted anonymity to speak about internal party discussions, Narayan did not receive a headline speaking slot on the main stage, despite requesting one.

He insisted, however, that AI is a top priority across government, arising in every Cabinet meeting so far. "My task is to convince the rest of Cabinet, the rest of parliament … and, most importantly, the British public, as to why this is a much bigger part of our shared aspirations for the country," he said at the POLITICO Pub.