What’s Coming in 2025 For AI Regulation & Key Changes Businesses Should Prepare For
Artificial intelligence is rapidly becoming a part of everyday life, with many businesses scrambling to take advantage of the perceived benefits that the technology offers. While there is currently little state regulation of AI, the UK government and others worldwide are exploring various options to regulate the sector. Therefore, businesses must stay abreast of the latest developments to prepare effectively and manage their risks properly.
In this article, we cover the existing regulatory landscape for AI in the UK, the current government’s plans for AI regulation, what happened to the previous government’s attempts at AI regulation, what we can expect in the near future, how AI regulation in other jurisdictions might impact the UK and what businesses need to do about any regulatory changes.
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Key points for businesses to know about AI regulation
- The UK currently has no general regulations for artificial intelligence
- There are some restrictions on AI usage in other existing legislation, including the Data Protection Act 2018
- The current Labour government has set an intention to “harness the power of artificial intelligence” and also “strengthen safety frameworks”
- The previous Conservative government’s attempts at AI regulation were not implemented before the change of government, so will not become law
- A new Data (Use and Access) Bill has been introduced by the current government which, if it becomes law, will enable organisations to use AI for automated decision-making (which is currently prohibited under the Data Protection Act 2018)
- The EU AI Act recently became law in the EU, introducing significant new regulatory obligations around AI
- These EU regulations do not apply to the UK but could impact British businesses with ties to the EU
The Commercial Law team at Longmores can help businesses to navigate a wide range of regulatory challenges and other legal risks, including in relation to AI
What is the existing regulatory landscape for AI in the UK?
There are currently no general regulations for artificial intelligence in the UK, although some existing legislation does place restrictions on how AI can be used.
For example, the Data Protection Act 2018 includes a “right not to be subject to automated decision-making”. This effectively means that AI cannot be used to make “significant decisions” about the person to whom the data relates.
There have been various attempts to update existing legislation and add further regulation around AI, but so far none of these attempts have made it into UK law.
What are the current government’s plans for AI regulation?
The current Labour government announced “we will harness the power of artificial intelligence as we look to strengthen safety frameworks” in the background notes to its first King’s Speech, which was delivered on 17 July 2024.
It also said it would “seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models”, as covered in the King’s Speech itself.
A new Digital Information and Smart Data Bill was also announced as part of the legislative program set out alongside the King’s Speech. This was widely expected to include provisions relating to AI, which have now been included in the Data (Use and Access) Bill (see below).
What happened to the previous government’s AI regulations?
The previous Conservative government was generally seen as pro-innovation in its approach to AI, with its National AI Strategy setting out various measures, including a “ten-year plan to make Britain a global AI superpower”. To what extent the new Labour government will continue this plan is yet to be seen.
Regulation introduced under the previous government included the Data Protection and Digital Information Bill, which touched on the subject of using AI for decision-making, and the Artificial Intelligence (Regulation) Bill, which made significant proposals for regulating the use of AI. However, neither Bill succeeded in making its way through Parliament ahead of the 2024 general election, so both are effectively dead.
What UK AI legislation can we expect in the near future?
The Data (Use and Access) Bill, introduced by the current government on 23 October 2024, contains provisions to relax rules around the use of AI in automated decision making. This revives one of the key points of the previous government’s Data Protection and Digital Information Bill.
Under the proposed terms of the Bill, data controllers within organisations will be required to ensure “that safeguards for the data subject’s rights, freedoms and legitimate interests are in place”. These safeguards would include providing data subjects with information about decisions, as well as enabling them to make representations about those decisions, secure human intervention about them and contest them.
The Data (Use and Access) Bill is currently in the early stages of making its way through Parliament, so it is uncertain when it might become law or what its final form may take. However, given the government’s strong majority, it is likely the Bill will become law in some form.
As of yet, no successor to the Artificial Intelligence (Regulation) Bill has been introduced in this Parliament. It is, therefore, unknown what other measures to regulate AI the current government may decide to bring in in the near future.
What are other jurisdictions doing about AI regulation and how might this impact the UK?
The EU AI Act is perhaps the most relevant legislation from another jurisdiction for businesses and organisations in the UK. It came into force on 1 August 2024, and its provisions are expected to come into effect in stages over the next three years.
Provisions of the EU AI Act include:
- Defining what an AI system is
- Classifying different types of AI systems according to the potential level of risk they pose
- Introducing requirements for providers of high-risk AI systems, including around risk management, data governance and human oversight
- Prohibiting certain types of AI systems and uses for AI
While this EU legislation does not apply to the UK, British businesses operating in the EU or with significant links to the EU must be aware of how the EU’s rules may apply to them.
What do businesses need to do to prepare for changing AI regulations in the UK?
Currently, there is nothing specific that UK business’s need to do with regard to AI regulation as nothing has changed yet (unless, as covered above, they may be impacted by the EU’s new AI regulations). However, it would be sensible to keep up-to-date with any proposed changes and aware of how they may affect your operations.
As and when new regulations are introduced, businesses will likely need to create new policies and procedures, particularly in the areas of risk and compliance. Expert legal advice will be crucial to ensure such measures align with any new regulatory requirements, so seeking specialist support will likely be beneficial.
How Longmores can help businesses with AI regulation and risks
At Longmores, our Commercial Law team can help businesses and other organisations to manage all of their regulatory and other legal risks. We can assist with creating effective policies and frameworks, enabling you to take advantage of the latest technology while maintaining regulatory compliance and good general risk management practices.
For expert support with all aspects of commercial law, including regulatory compliance, please get in touch and we will be happy to advise.
Please note that the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.
