Does regulation kill innovation? A summary of Lord Clement-Jones' keynote speech

Speaking at our recent 'Does regulation kill innovation?’ event on 15 May 2025, Lord Clement-Jones gave a keynote speech looking at whether it's possible to regulate AI in a way which stimulates rather than impedes innovation.  

Balancing the risks and opportunities of AI, Lord Clement-Jones said: "I'm an optimist on AI". He went on to consider a variety of perspectives touching on ethical, economic and safety considerations, and looking at issues including data privacy, consumer protection and intellectual property rights. 

Here are the key points highlighted during his address. 

Turning conventional wisdom on its head  

"The question is not whether we can use it for a particular purpose but whether we should. This means that conventional wisdom that regulation stifles innovation needs to be turned on its head...As AI systems become more powerful and pervasive, there's a growing recognition that appropriate regulation isn't just about restricting harmful practices, it's actually key to driving widespread adoption and sustainable growth." 

Timestamp - (Around. 8.12-8.50) 

Accelerating adoption through clear frameworks  

"Many potential AI adopters...are hesitating not because of technological limitations but due to uncertainties about liability, ethical boundaries, and public acceptance. Clear regulatory frameworks that address issues like algorithmic bias, data privacy, liability and accountability, and decision transparency, can actually accelerate adoption by providing clarity and confidence and generating public trust. And the inherent risks of AI such as biases in decision making, invasion of privacy and potential job displacement make it clear that unregulated AI can lead to significant ethical and societal repercussions.  

The call to regulation is about ensuring AI systems operate within boundaries that protect human values and rights. Without this framework the potential misuse or unintended consequences of AI could lead to public distrust and resistance against the technology. So far from being a break on progress, well designed regulation can be a catalyst for AI adoption and innovation." 

Timestamp - (Around 9.20 – 10.40) 

Regulation as a stimulus for innovation 

"There is good evidence that regulation can stimulate innovation by defining the rules of the game, giving companies the confidence to invest in AI technologies without fear of future legal repercussions for unseen misuses. In markets where regulation is clear and aligned with global standards, companies can also find easier paths to expand internationally.  

This not only drives growth but also fosters international collaboration on global AI standards leading to broader advances in the field. So, regulation in my view can, in fact, by providing certainty, be the stimulus for innovation and the key to gaining and retaining public trust around AI development and adoption so we can realise the benefits and minimise the risks. The question is how best to apply regulation and law in a way that will ensure that ethical values apply to the development and adoption of AI systems and so underpin public trust." 

Timestamp - (Around 11.05-12.10 mins) 

The need for digital citizenship  

"We need a form of digital citizenship. There is no evidence that the government is taking this nearly seriously enough and at the end of the day we need to ask how we can overcome the different national approaches to regulation in different countries to ensure that despite differing regulatory regimes developers are able internationally to collaborate and commercialise their innovations on a global basis. Interoperability, in other words, and consumers and adopters can have the necessary trust and confidence that these systems comply with ethical and safety standards when they use these systems."   

Timestamp - (Around 17.50-18.20) 

Transparency regarding creative works  

“It's now clear that the government needs to act decisively to make sure that creative works…are not ingested into large language models for training purposes without any returns to rights holders and that there is a duty of transparency on developers to declare the data and content they're re ingesting and we need to make sure that we know when AI is copying a human performance. Failing that we are not going to get the balance between human potential and machine innovation right and that has consequences for us all and, for me, that is what regulation is all about.” 

Timestamp - (Around 21mins)