Pro-innovation: UK signals flexible approach to AI regulation

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12 Feb 2024
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Pro-innovation: UK signals flexible approach to AI regulation

Sarah Beddoes, General Counsel and Co-Chair of Adarga's Committee for Responsible AI

Last week, DSIT published its response to the consultation on its approach to regulating AI. It is a major milestone for the UK’s AI industry. These rules will be critical to answering the question of whether the UK can be a world leader in AI development, deployment, and regulation.

In line with the original White Paper, the UK is maintaining a principles-based, regulator-led approach, in contrast to other jurisdictions like the EU where specific AI legislation has been introduced with onerous restrictions that will hamper innovation. The UK’s approach has several benefits: it retains the flexibility to respond to this fast-developing technology and avoids blanket preclusion of AI adoption in key sectors. Most importantly, it gives businesses – which are driving the technological progress in AI – the room to innovate responsibly.

The industry is taking its responsibility seriously. Many of the largest companies have agreed voluntary commitments with the UK and other governments to improve their transparency. Others, like Adarga, have established structures that put responsible development of AI and AI governance at the core of their work. As the co-chair of Adarga’s Responsible AI Committee, I have a first-person view of how this commitment comes to fruition when we develop and deploy AI for our customers. Trusting companies to be responsible members of the AI ecosystem, with the necessary guardrails in place to prevent risk, will not only allow companies to innovate, but will also allow them to develop world-leading approaches to AI safety, transparency, and accountability.

While last week marked important progress, some key issues remain unresolved. In particular, questions over copyright / IP and where legal liabilities will sit within the AI value chain need to be answered. Without these, there is uncertainty and therefore a risk of disincentivising companies and investors. It will be important that the views and needs of SMEs are considered in these processes.

There is also the broader question of if, and when, the UK will introduce AI-focused legislation or rules. While the White Paper response said “it is clear that some mandatory measures will ultimately be required” for the most capable systems, the tests set for introduction based on mitigating risks without harming competition or innovation are commendable and will help to ensure the AI ecosystem is not stifled.

Despite having had to wait slightly longer than expected for it to be finalised, this regulatory approach is a positive step for the UK AI industry. We at Adarga are excited to see not just how it enables existing and new companies to innovate and grow, but also how a real partnership between industry, academia, and government can produce new tools and technologies for making AI safe.

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