Reed Smith Client Alerts

Key takeaways

  • The UK government's Plan does not present a shift in the UK’s position of AI regulation, but rather evidences a significant investment in the development and integration of AI in the private and public sectors.
  • The UK has taken a rather lax approach to AI regulation and generally has used a patchwork of regulatory principles, sector-specific best practices, and pre-existing legislation to regulate the commercial use of AI. See summaries of the most recent ICO guidance below
  • The differing approaches across the EU, the UK, and the United States will have a significant impact on businesses that use AI systems (see summaries of EU and U.S. approaches below). With each jurisdiction progressing on its own regulatory timeline, businesses are encouraged to adopt a proactive approach to compliance and begin mapping their obligations in each jurisdiction.

On 13 January 2025, the UK’s prime minister, Sir Kier Starmer, unveiled the UK's AI Opportunities Action Plan (the Plan), with the aim of positioning the UK as a global leader in artificial intelligence. The Plan highlights the government’s pro-innovation approach to AI regulation and outlines a number of measures the government will take to meet its goals.

The Plan outlines 50 recommendations, split between three sections: (i) investing in the foundations of AI; (ii) adopting cross-economy AI adoption; and (iii) fostering homegrown AI. The government has maintained a light touch on regulation in the Plan. This is not surprising as the government wants to attract technology companies to invest in the UK. The Plan further indicates that the UK will not pursue wholesale regulation of AI technologies on a statutory basis.

What is the UK’s approach to AI regulation?

The UK has always taken a rather lax approach to AI regulation in the past and has generally used a patchwork of regulatory principles, sector-specific best practices, and pre-existing legislation (such as the Consumer Rights Act) to regulate the commercial use of AI. Some notable recent examples include: