Artificial intelligence (AI) is increasingly becoming a party of daily life, prompting businesses to capitalise on its potential benefits. Although AI remains largely unregulated, the UK government and other authorities worldwide are considering various regulatory approaches. As a result, businesses must stay informed about emerging developments to effectively prepare and mitigate potential risks.
This article should hopefully give businesses a taste for what is to come regarding AI regulation in 2025.
The current state of AI regulation in the UK
While there is currently no general statutory regulation of AI in the UK, various areas of law touch on AI regulation in practice. To illustrate, the General Data Protection Regulations (GDPR) govern the collection and use of personal data and place certain restrictions on automated decision making with significant effects on people’s lives through the “right not to be subject to automated decision-making”.
The previous Conservative government outlined a new National AI Strategy setting out measures including a 10-year plan to make Britain a global AI superpower. This has since dwindled due to the introduction of a new government.
There have been attempts and suggestions to update existing legislation and add further regulation around AI, however we are yet to see any specific AI regulations introduced.
What can businesses expect?
The July 2024 Kings Speech said the government will “harness the power of artificial intelligence” and “look to strengthen safety frameworks” which set the groundwork for AI regulation development in the UK.
The Data (Use and Access) Bill, introduced by the government in 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. This Bill is currently in its early states so we are yet to have an indication of when it is to come into power.
The EU have introduced an EU AI Act which came into force in August of last year. Although the EU legislation does not apply directly to British businesses, for businesses which trade or operate in the EU are advised to be away of the rules and how they may apply. This EU AI Act’s main provisions include 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 and also prohibiting certain types of AI systems and uses for AI.
Although there is little AI regulation to be aware of for businesses in the UK, it is advisable to stay up-to-date with proposed changes and be aware of how they may impact a business. New policies and procedures are likely to be required by businesses following the introduction of regulations to ensure compliance and the prevention of breaches.
How We Can Help
Berry Smith has extensive experience in Commercial Law, assisting startups and established businesses alike with drafting, reviewing, and refining contracts. Whether you need advice on updating your current agreements, protecting your intellectual property, or navigating complex negotiations, our team is here to help. Contact us at commercial@berrysmith.com or call 029 2034 5511 to discuss your requirements and ensure your contracts are ready to meet the challenges of 2025.