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Deputy PM to unveil AI labs to drag legal sector out of ‘analogue’ age
City AM · 2026-06-08 05:00
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The UK government is launching a new AI growth project aimed squarely at dragging the UK’s billion-pound legal sector out of its “analogue” age.
Ahead of London Tech Week, City AM can reveal that Deputy Prime Minister David Lammy will unveil ‘AI growth labs’, a regulatory safe space designed to cut through bureaucratic red tape and fast-track cutting-edge LawTech directly into the City.
The legal sector is the first industry selected for this initiative because of “strong demand from the industry and clear evidence that smarter regulation can deliver breakthrough LawTech solutions”.
These labs offer a regulatory “safe space” where tech innovators can trial AI software, resolve compliance issues directly with regulators, and cut through bureaucratic complexity to bring products to market faster.
Lammy stated, “The legal sector is a cornerstone of the UK economy, contributing over £40bn a year, yet too often it’s been held back by analogue systems simply not fit for the digital age.”
AI to ‘turbocharge’ business growth
By removing traditional regulatory hurdles that have historically slowed tech integration, Ministers are banking on a major productivity spike to speed up corporate and property transactions across British businesses.
“That’s why we’re deploying these new AI Labs to turbocharging legal innovation, helping us drive growth, boost efficiency and deliver smarter justice, as well as positioning the UK to lead internationally in this vital market,” the Deputy Prime Minister added.
Applications for the AI Growth Labs will open later this summer for tech innovators, including LawTech firms, legal service providers and conveyancing companies, before being rolled out to other sectors later this year.
Lammy, the Justice Minister, is set to attend London Tech Week on Tuesday, where he is expected to announce a major new phase of investment in technology and AI to drive court modernisation.
Earlier this year, for the justice sector, he set out his vision for “faster and fairer justice for victims,” which included an AI court assistant and his controversial scrapping of jury trials in less serious cases.