In the UK, the governance of AI is a developing area. In contrast, the EU has already moved forward with legislative frameworks to regulate AI. UK companies operating in the EU are subject to EU statutory compliance obligations, unlike UK companies operating only in the UK market where the direction of travel with statutory regulation looks less than certain.
Artificial Intelligence (AI) has emerged as one of the most transformative technologies of the 21st century, with wide-ranging applications across sectors such as healthcare, manufacturing and transport. As AI continues to evolve, questions surrounding its governance and regulation have become a focal point for governments and regulatory bodies around the world.
AI oversight in the UK is currently shared amongst existing sector specific regulators, such as the Information Commissioner’s Office (ICO), the Competition and Markets Authority (CMA) and the Financial Conduct Authority (FCA), reflecting Keir Starmer’s commitment to a “light touch” approach to regulation, intended to promote innovation and opportunity over rigid oversight. Regulators have each published their strategic approach to AI.
As a next step to engaging with the regulators, in November 2024, the UK government announced that it will soon, “bring forward highly targeted binding regulation on the handful of companies developing the most powerful AI systems, to ensure the UK is prepared for this fast-moving technology” (UK Statement at WTO AI Conference, 21 November 2024). This approach was confirmed in January 2025 when the government confirmed the two pronged approach of supporting regulators with their sector specific guidance and bringing forward AI legislation to govern “frontier” AI systems.
However, a recent re-introduction by Lord Holmes of a private members bill, with its first reading on 4 March 2025, suggests that there may be no impending signs of AI regulation in the UK. The Artificial Intelligence (Regulation) Bill (AI Bill) marks a renewed attempt to introduce AI legislation in the UK.
The AI Bill proposes:
The re-introduction of the AI Bill signifies on-going concerns around AI risks and the need for formal oversight. Legislation anticipated for the end of 2024 is unlikely to appear, if at all, until the summer of 2025 and commentators are linking the delay in regulation to a closer strategic alignment with US policies.
The EU AI Act entered into force on 1 August 2024 and provides a risk-based approach that classifies AI systems into 4 categories based on their perceived level of risk:
As the UK is not part of the EU, it is not obliged to adopt the EU AI Act. However, one way in which the UK is likely to be impacted by the EU AI Act is in trade and market access. The EU AI Act will establish a regulatory framework that impacts the design, development and deployment of AI technologies within the EU. As the UK maintains close economic and trade ties with the EU, UK companies operating in the EU will need to comply with the EU AI Act’s requirements, especially for high-risk AI systems. This could lead to a scenario where UK companies must adhere to EU regulations, even if the UK does not adopt similar laws.
The governance of AI in the UK is still in its formative stages. In comparison, the EU AI Act adopts a prescriptive and structured regulatory model. In the US, the direction of travel is expected to be a less strict regulatory regime than that of the EU. As AI continues to evolve, the UK will need to find its own way to foster a regime that promotes innovation and opportunity within an environment where AI technologies are developed and deployed responsibly. What that will look like remains to be seen.
For further information, or if you wish to discuss any technology related matter, please contact Paula Dumbill on 0330 4609755 or by email [javascript protected email address] or Jack Wright on 01603 580014 or by email [javascript protected email address].
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