Lammy said he would accept all 33 recommendations made by Dame Lynne, former deputy commissioner of the Metropolitan Police, in her report, external.
Trials of biometric fingerprint and facial recognition will begin within six months, he said, with a full roll-out expected before the end of this parliament.
£82m would be spent to “bear down on these errors and keep the public safe after years of chaos,” he said, including £20m this year “to digitise the archaic paper-based processes we inherited” and increasing checks and staffing.
Lammy also expressed his “profound sympathies to the victims of those prisoners who were released in error, especially to Hadush Kebatu’s victim”, adding that he had met the victim’s family in December.