AI is the technology at the top of the agenda for businesses across sectors and across the UK - not just for those within the tech sector. And the UK government has explicitly sought to lead global conversations on AI governance – through its November 2023 AI Summit, as well as seeking to provide guidance to UK firms who are looking to capitalise on the potential of AI technologies, while addressing risks associated with its expansion.
The government made important moves in 2023 on global AI Safety policy with the introduction of its AI Safety Institute, but with new CBI Economics research showing fewer than a quarter of UK businesses have actually implemented AI and automation within their business, and over half of businesses are yet to adopt this technology at all, it was also important to push ahead at pace with UK regulation to give clarity to businesses grappling day-to-day with the opportunities and risks of adopting AI technology.
In the UK’s National AI Strategy, government emphasizes its aim to diffuse AI across the whole economy, meaning the recent announcements of the UK’s AI regulatory strategy will impact more than just the tech sector. AI is expected to provide significant benefits to sectors like agriculture, education, and healthcare. Businesses will need clarity on AI adoption and regulation—including resources and clear advisory bodies—to keep up with competition in adopting the technology effectively.
CBI members – through the CBI – have consistently made their voices heard on the importance of guidance for businesses in day-to-day deployment of AI, both directly and through sector regulators, including in the run up to government’s March 2023 White Paper ‘A Pro-innovation approach to AI regulation’, and in submissions to the consultation after the White Paper had launched.
In February 2024 the government announced its response to the consultation, and its proposed next steps. In this short explainer we update CBI members on the main provisions in the newly-released plan, indicate where key messages from CBI members are reflected in the plan, and state our asks of government on next steps.
Overall, the CBI supports the government’s ‘light touch’ approach to AI regulation in not rushing to legislate and taking a principles-based approach while providing central expertise - reflecting the view of CBI members across sectors and the country for the need to provide greater certainty while maintaining flexibility for firms to innovate.
Here are some key CBI asks and highlights from the UK’s AI regulation strategy announced in the White Paper response:
Key CBI asks and highlights
The creation of an ‘AI Governance Hub’ as a cross-regulatory body
White Paper response: Committed to establishing a new ‘steering committee’ and the implementation of a pilot ‘AI and Digital Hub’
- The steering committee would support regulators and coordinate with government and regulatory representatives on the implementation of AI regulatory principles
- DSIT announced a pilot AI and Digital Hub which has been confirmed in the White Paper Response, which will serve as a multi-regulator advisory service to support businesses to meet and understand regulatory requirements
- Government also said they have already ‘started developing the central function to support effective risk monitoring, regulator coordination, and knowledge exchange’.
No statutory duty on AI for individual regulators
White Paper response: Confirmed there will be no ‘rush to regulate’
- Maintain agility in regulation while evaluating future powerful systems which could require introducing binding measures
- This would be established through an analysis of thresholds of system capability, and would only be applied to a small number of the most powerful general purpose systems.
Ensure regulators are well resourced and coordinated across a range of sectors and industries
White Paper response: An additional £10 million will be allocated to support existing regulator capacity and function
- This added support will allow government to maintain its sector-based approach to regulation
- Alongside the White Paper Response, the government published guidance to support regulators to implement its principles effectively.
Keep standards of the AI Standards Hub voluntary
White Paper response: The agile system allows ‘regulators to respond rapidly to emerging risks, while giving developers room to innovate and grow in the UK’
- Government anticipates that voluntary measures will be effective in the first instance to maintain regulatory agility, but that mandatory interventions will subsequently become necessary to address risks.
There should be a target for multi-sector, multi-regulator sandbox, coordinated by an Office for Future Regulation
White Paper response: The DCRF’s AI and Digital Hub will bring together four critical regulators (CMA, ICO, Ofcom, and FCA), representing cross-economy and sectoral oversight.
Next steps
- The government needs to implement these policies in a timely manner, as UK businesses are facing decisions on AI adoption now and need clarity on regulation and policy. The call for regulators to publish their strategic approach to implementing the White Paper by end of April, and the commitment to establish the new steering committee by Spring are a good start
- The Responsible Technology Adoption Unit (formerly Centre for Data Ethics and Innovation) has published its first report on AI Assurance. This guidance should be used by organisations and regulators to allow for effective deployment of AI systems into various sectors
- The government should continue to listen closely to business on the challenges and opportunities presented through AI and ensure business have the clarity they need to keep up with competition.
Our response to the White Paper Consultation highlighted business perspectives from our engagement with the AI Working Group, TechUK, and the Tech and Innovation Committee (contact Melissa McLaughlin for more information on joining).