The SRA, LSB and CLC will work directly with innovators to identify regulatory barriers and support responsible AI adoption
The Solicitors Regulation Authority (SRA), Legal Services Board (LSB) and Council for Licensed Conveyancers (CLC) have joined the government’s newly launched AI Growth Lab, an advisory regulatory sandbox designed to support the responsible adoption of artificial intelligence across legal services.
Legal services has been selected as the first sector to participate in the initiative, which has been launched by the Department for Science, Innovation and Technology (DSIT) and the Ministry of Justice (MoJ) to help innovators navigate regulatory requirements while developing and testing AI-powered products.
Announcing the initiative, Deputy Prime Minister and Lord Chancellor David Lammy said: “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.
“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 MoJ said legal services was selected as the first sector to participate, reflecting strong industry demand and evidence that smarter regulation could help deliver breakthrough lawtech solutions.
The AI Growth Lab will bring together the SRA, LSB, CLC and Information Commissioner’s Office (ICO) to work directly with innovators.
The government said: “Together, they will work with innovators to surface and address cross-regulatory challenges, identify any unintended barriers in regulators’ rules, and build a clearer picture of what good regulatory oversight of AI looks like in practice.”
The MoJ said the Lab would provide a structured environment for legal services firms and lawtech companies to explore how innovative AI models can comply with existing regulatory requirements and help overcome concerns that regulatory rules may be more restrictive than they are in practice.
It added that the initiative was intended to give innovators greater confidence to develop AI-enabled services that are both compliant and capable of delivering significant benefits to consumers and businesses, including improved access to justice.
The government said the programme would provide clearer, joined-up guidance within existing regulatory frameworks, helping innovators navigate regulatory requirements and bring new products to market more quickly.
SRA chief executive Sarah Rapson said: “AI is already transforming legal services, from helping small businesses recover debts to enabling consumers to navigate complex legal processes.
“These tools are improving access to justice in a practical and meaningful way. The Lab will accelerate this progress, supporting the growth of legal services that benefit the public, and that maintain the high professional standards that underpin trust in the legal profession.”
The SRA said the initiative would provide additional support to innovators seeking to test AI products within existing regulatory frameworks while maintaining appropriate standards and consumer protections.
In a separate statement, LSB chief executive Richard Orpin said: “The AI Growth Lab is a pragmatic and timely initiative to accelerate the responsible adoption of AI in legal services.”
He added: “Our research shows that consumers are open to the benefits of AI in legal services, but that trust depends on strong safeguards, transparency and accountability. The lab provides a practical way to apply these insights in real settings to support and enable safe innovation.”
The LSB said: “The lab gives AI companies the opportunity to test products and services in the real-world under supervised conditions before bringing them to market, with regulators providing practical guidance on how existing rules apply.
“This ‘advisory sandbox’ offers legal services providers and innovators greater confidence to innovate quickly, without needing changes to any legal or regulatory requirements. Participation does not constitute regulatory approval, endorsement or authorisation.
“Following testing, the LSB and the regulators it oversees will consider what regulatory changes, if any, may be needed to further support innovation and growth, while ensuring consumers remain protected.”
The CLC is also participating in the initiative and will work alongside the other regulators to support innovators through the advisory sandbox and help address cross-regulatory issues arising from the development of AI-enabled legal services.
Applications from AI developers, lawtech companies and legal services providers are expected to open later this summer. The SRA said participation in the programme would not amount to regulatory approval and that existing legal and regulatory requirements would continue to apply.