The artificial intelligence (AI) sector has witnessed considerable expansion in recent years. The United Kingdom is projected to be the third largest AI market globally, following the United States and China, with a valuation of around £17 billion in 2022. The private sector plays a crucial role in this recent expansion, especially within the banking, insurance, and business services industries, making the UK a prominent destination for private investment in AI. The government has adopted a ‘pro-innovation’ approach towards AI, particularly concerning public funding, technology policy, and its regulatory strategy. The government aims to bolster UK innovation in AI with substantial investment in new computing capabilities, including plans for a state-of-the-art exascale supercomputer designed to train large-scale, intricate AI models. This commitment to innovation is clearly outlined in the government’s White Paper on AI regulation, which was released for public consultation in March 2023 (the AI White Paper) and establishes a principles-based, sector-specific, and regulator-led framework for regulating AI in the UK. It is anticipated that the government will continue to refine its proposed regulatory framework, especially after its key event—the AI Safety Summit—which occurred in early November 2023. Meanwhile, AI has become a priority for several UK regulators, such as the Information Commissioner’s Office (ICO), the Competition and Markets Authority (CMA), Ofcom, and the Financial Conduct Authority (FCA), focusing mainly on guidance and policy at this point; however, enforcement activities from these regulators are likely forthcoming (with the ICO enforcing data protection laws concerning AI systems, for instance).
Source: Lexology
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