In the wake of the recent general election, the UK is poised to introduce new legislation that will significantly impact how artificial intelligence (AI) is regulated, marking a pivotal moment for businesses operating within the country.
The new Labour government has signalled its intention to implement specific regulations concerning AI, and it’s expected that these will be more targeted and nuanced, and specifically target companies responsible for the most powerful AI models.
The previous Conservative government championed a ‘pro-innovation’ approach to AI regulation, built upon a set of principles designed to foster innovation, while ensuring safety, transparency, and fairness.
The government’s AI Regulation White Paper, published in March 2023, laid the groundwork for this principles-based framework, which is now being implemented through the UK’s existing regulators. In February 2024, ministers wrote to key sectoral and cross-economy regulators, requesting an update on how they’re taking forward the White Paper proposals and the steps being taken to develop their strategic approaches to AI.
For businesses, the new regulatory environment will require a keen understanding of the risks and opportunities presented by AI technologies. Companies will need to ensure that their AI systems adhere to the established principles, particularly in terms of safety and fairness, to avoid potential legal and reputational risks.
National law firm TLT works to support and advise businesses on how to strike the balance between innovation and managing risk. For our 2024 programme, The Future of Work: People, Culture, Tech, presenter Duncan Golestani interviewed TLT’s Head of Data, Privacy and Cybersecurity, Gareth Oldale, alongside Michelle Sally, Partner in the Technology, IP and Data team.
This partner film is produced by the ITN Business commercial team and is not created by ITN news staff journalists.
Gareth and Michelle discussed what businesses need to be across when it comes to navigating AI, how legislation will affect companies that have already implemented AI tools, lower-risk options for employers who want to implement AI, and the biggest trends for the future of work over the next five years.
DG: AI is becoming more and more widely used. What’s drawing businesses to implement AI and what should they be aware of?
Gareth Oldale (GO): We’re now seeing lots of organisations dip their toe in the water with AI and start to investigate where they can enhance their business by deploying AI tools. Many are looking to improve efficiency or deliver better outcomes for their clients and customers. Lots of organisations just don’t want to be left behind; they’re fearful of the market getting ahead of them. So, we are seeing a number of different approaches in different sectors.
Clients need to be mindful not just of the fact that there are benefits that can be delivered, but also that there is a very strong and emerging legal and ethical framework that organisations need to bear in mind.
How can businesses that have already introduced AI navigate the changes in legislation and governance.
GO: It’s really complex, particularly for those organisations that trade across borders. The UK is developing its approach to regulating AI, the EU has already launched its EU AI Act. We’ve seen changes in China and in the US. Making sure that the law can catch up with the technology that’s already gone before it, is key. So, having a keen eye on the legislative changes that are coming, whilst advancing with these AI deployments is really important.
Michelle, what role does TLT play in helping businesses to navigate the complexities of AI?
Michelle Sally (MS): We act for our clients right across the spectrum, from financial institutions to large listed companies, to SMEs and startups, to even the regulators themselves. That gives us a real breadth of legal knowledge, but also market insight that we can deploy on AI projects.
We also have a fantastic tool, the AI maturity tool, AI Navigator, which allows our clients to see where they are on that journey, so they can see if they’re in the earlier stages, and what they might think about to elevate their platform to the next level. Or, if they want to stay on that similar progression level, they can work out what’s happening in the world around them and what the changes are for them to think about what to do next.
Are there any lower risk options that could have a real positive impact?
MS: It’s a brilliant time to be thinking about an AI implementation project because the AI tools are further advanced now than they were in the early stages. In terms of low risk options, businesses might want to think about use of calendar management or document management tools, so items that might help them with their administrative tasks. That said, further along the spectrum, some businesses might want to think about behavioural analysis to think about how they can work through what performance is like in the workplace and how to make that better.
Gareth, to summarise, what key considerations do TLT advise businesses to make when trying to strike that balance between innovation and being respectful of the law?
GO: There’s a number of things that businesses need to think about, including making sure that you have strong internal AI governance, making sure that your teams are trained, making sure that people understand where the boundaries lie; is it permissible to use AI in different circumstances within the organisation. And then making sure that your technology deployment roadmap is consistent with the legislative changes that we’re seeing. So not looking to push too far too fast.
MS: There are two best practise considerations, just to add to that, for companies at the outset of an AI project. The first is thinking about the impact of the AI tool on the workforce. Will there be any knowledge requirements to bring into the team? And then also, on the supply chain; are there any impacts to think about on suppliers? Is there any impact on the customer base? All are very good considerations to think about at the planning stage, and then it’s making sure those are built into the project from the outset, and carried through until the end.
Explore more about AI in our upcoming programme, AI and Big Data: Empowering Tomorrow
