It was great to welcome so many clients to our offices in London and to be part of a wide-ranging event that explored how businesses should navigate the changes resulting from the election of the UK’s new Labour government and wider changes during this Election Supercycle.
We were delighted to lead the conversation about tech regulation. This blog shares three key practical takeaways for businesses, focusing on two topical tech areas that are high on the new government’s agenda: AI and online safety.
1. The UK’s new AI legislation is expected to be narrow in scope, but businesses still need to track new AI and tech regulatory developments.
While the proposed AI Bill is expected to focus on narrow AI safety risks, reforms in several tech-related policy areas are likely to be wider-reaching. For example, the new government intends to amend the UK’s data and cybersecurity laws. Likewise, the Online Safety Act (OSA) entered into force under the previous government, but the new government is both committed to implementing the OSA’s main obligations in 2025 and it may even consider further extending the UK’s online safety regime.
Governments around the world face growing pressure to regulate new technologies. AI, online safety and social media regulation are just a few examples of areas where government policy may continue to evolve, and there have been calls in the UK for this policy to be reflected in a more comprehensive legislative framework.
2. The UK regulatory environment, and potential incentives for tech investment, will aim to spur growth and opportunity in the UK tech sector.
There were 66 references to growth in Labour’s manifesto.
Businesses, particularly those at an early stage as well as investors, should stay close to relevant government bodies and understanding the ways in which investing in technology, such AI, might be incentivised and promoted by government.
Regulation may also indirectly create some investment opportunities. We expect there to be increased investment in technologies relating to online safety, such as age assurance, content moderation and digital verification, making it potentially a hot sector for investors.
3. It’s time to refresh your AI and tech regulatory governance and risk management frameworks
Business must keep their frameworks up to date to align with new guidance, regulation and other developments as they emerge.
Organisations operating internationally should take a globally joined-up and informed approach to ensure their frameworks cater for all relevant regulatory regimes, including the extensive AI law recently enacted by the EU.
Frameworks should also evolve to:
- protect value in what businesses are creating using technology systems (such as rights in datasets, AI prompts and what AI produces)
- spotlight data rights management (eg ensuring the business can legally use the data employed to train AI systems)
- ensure the appropriateness of contracts with suppliers and customers, particularly to allocate liability where the use of technology goes wrong.
Do not hesitate to speak to your usual Freshfields contact if you have any questions or would like to discuss further any of these issues. See our Election Supercycle page for more content from this event.