The House of Lords is poised to mount a significant rebellion against the government’s Artificial Intelligence Bill, with cross-party peers threatening to reject several core clauses. Sources close to the debate have told The British Wire that the Lords will target provisions on data scraping, liability, and transparency, arguing the legislation risks stifling innovation while failing to protect the public.

At the heart of the revolt is Clause 7, which would grant ministers sweeping powers to amend the bill via secondary legislation. Peers fear this would allow the government to bypass parliamentary scrutiny on critical issues such as facial recognition and automated decision-making. “This is a blank cheque for Whitehall,” one Labour peer said. The clause has drawn rare unity among opposition parties, with Liberal Democrat and Conservative rebels voicing concerns.

Another flashpoint is Clause 14, which exempts AI developers from liability if they adhere to voluntary codes of practice. Critics argue this creates a “get out of jail free” card for tech giants. Victims of algorithmic harm would face an uphill legal battle. Baroness Kidron, a leading voice on digital rights, warned the exemption could “erode public trust in the justice system.” Her amendment to make developers strictly liable for harm has gained backing from barristers and consumer groups.

The bill’s definition of “high-risk” AI systems has also drawn fire. Peers say the current wording is too narrow, missing key applications in housing, policing, and employment. An amendment backed by the Equality and Human Rights Commission seeks to expand the list to include systems that could lead to discrimination. “If it can deny you a job or a home, it should be regulated,” one peer said.

The government faces a tight vote on Tuesday, with many Conservative peers ready to break ranks. Business minister Lord Johnson has reportedly offered concessions on transparency reporting and a review of the bill after two years. But critics dismiss this as insufficient. “We need robust safeguards now, not a promise to revisit the issue down the line,” said a Liberal Democrat spokesman.

Behind the scenes, number crunching suggests the government could lose by as many as 40 votes. This would be a blow to Prime Minister Rishi Sunak, who has touted the UK’s AI regulation as a model for the world. The revolt follows a pattern of Lords defeats on technology bills, including the Data Protection and Digital Information Bill last year.

Tech firms are watching nervously. While many support the bill’s aim to foster innovation, they worry that amendments could create a patchwork of regulations across Europe. Some have warned they may move jobs overseas if the UK becomes too restrictive. “We need clarity and proportionality,” said a representative of TechUK. But campaigners argue the current bill offers too much clarity for industry and not enough for citizens.

As the debate intensifies, the Lords will consider dozens of amendments over two days. The final vote on Clause 7 is expected on Thursday. If peers reject it, the bill could return to the Commons in a weakened state. With the government’s majority in the Lords slender, the outcome remains uncertain. One thing is clear: this revolt is far from over.