Patryk Kosmider - stock.adobe.co

Will there be a technology policy epiphany in 2026?

The UK government faces many complex technology policy decisions in the year ahead, which could reshape the country for a digital, AI-led future

Though the New Year has barely begun, it is worth considering what we know from a government legislative, regulatory and policy perspective, what’s coming and, indeed, what it appears is not.

Let’s take artificial intelligence (AI) first. The UK government still seems implacably opposed to bringing forward any cross-sector, comprehensive AI legislation. Its one-liner in the 2024 King’s Speech said the government “will seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models.” That seemed sparing at the time, and now seems extraordinarily overblown.

AI growth

Ironically though, while eschewing anything cross-sector or comprehensive, the government does keep lining up AI matters which will require primary legislation - copyright and AI growth labs to highlight just a couple.

And, while we’re on AI growth labs, the government consultation on them oddly chose 2 January to close. Given this is a central plank of policy in this area, it will be more than interesting to see the published response to the consultation and, indeed, the necessary legislative approach the government is intending.

Similarly, when it comes to AI and copyright, what will be the legislative approach and when? And is the “opt out” option dead - or sleeping? Our House of Lords Communications and Digital Select Committee inquiry on this subject continues with ministers showing up to next week’s session on Tuesday 13 January.

Markets of the future

Turning to crypto-asset regulation, 2026 will continue the journey from draft legislation being published on 15 December last year through to 25 October 2027- yes, that’s meant to say 2027 - for the current “go live” date. Already we have seen some definitional clarification and the arrival of new provisions related to market abuse, public offers and disclosures. It will be interesting to hear about continuing suboptimal elements and how the process is progressing – apparently set to “unlock growth and protect customers”?

Meanwhile, in transatlantic affairs, the US and UK have launched the “Taskforce for Markets of the Future,” essentially, a new bridge-building squad meant to turn crypto progress into real, usable policy.

Co-led by the US Treasury and HM Treasury, with regulators in the mix, the goal is to smooth friction that hits firms operating on both sides of the Atlantic. They are aiming for smoother cross-border capital flows, clearer supervision for digital-asset players, and safer market infrastructure, all without waiting years for every law to land.

The taskforce has 180 days to show it can deliver - impact may well come from nailing three things fast: clear token rules for real-world asset tokenisation; clear lines between “infrastructure” and “intermediary” so builders, like validators, don’t get treated like brokers; and stablecoin reciprocity so US and UK frameworks grow together instead of apart. If we get this right, it could be the start of genuinely interoperable digital-asset markets.

Cyber security

A critical thread to all of this is cyber. The Cyber Security Bill receives its second reading in the Commons today, 6 January. I’m very much looking forward to the bill arriving in the Lords later in the Spring and would welcome your thoughts on what’s in and what currently is not.

If that wasn’t enough for week one of 2026, we have the committee stage of the Crime and Policing Bill in the Lords tomorrow, Wednesday 7 January. Colleagues and I have amendments down to continue to push the government on Computer Misuse Act reform

I hardly need to lay out the land for readers here, we have been on this one for a while. Though we heard some potentially positive comments from the minister very late last year, any change is far from settled and certainly unannounced, which makes the minister’s response on Wednesday so much more material.

As I’ve already mentioned Labour’s first King’s Speech in July 2024, it’s worth mentioning the next. Though this parliamentary session was long slated to end in March, it seems we are heads down until May. Even when the King’s Speech arrives, it appears highly unlikely to include anything substantial or cross-sector on AI.

Digital ID

By contrast, there is much chat on digital ID. A consultation is said to be coming this month with a draft bill in May’s speech. This has hardly been helped by the government last year hanging its digital ID coat all around illegal immigration - a more than unfortunate decision.

An Elections Bill may well appear, highlighting the impact that various technologies are already potentially having on so many aspects of the electoral process and our very democracy. I plan to take the opportunity to reintroduce amendments I put forward to the 2022 bill, not least in considering technology’s role to increase the inclusivity and accessibility of elections and the integrity of the electoral roll itself.

Whatever comes to pass in 2026, it should, as ever, be that a human-led, principles-based, outcomes-focused, inputs-understood approach remains prime.

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