Artificial Intelligence (Regulation) Private Member's Bill

Following the Prime Minister's announcement on 22 May 2024 of a General Election, the Artificial Intelligence (Regulation) Private Member's Bill is no longer proceeding. The Bill had represented an attempt to create a statutory framework for AI regulation and had been passed through the House of Lords. However, the Bill has not passed through the House of Commons and has now been dropped with any other legislation not enacted by 24 May (the date of prorogation of Parliament). It is very unlikely that new legislation concerning AI will be enacted now before 2025.

Information Commissioner's Office (ICO)

In April the ICO published its strategic approach to AI regulation via a report in response to an inquiry from the Department for Science, Innovation and Technology (DSIT). Our May article explored the details of this report covering the risks and opportunities of AI, the ICO's existing approach in regulating the data protection elements of AI, as well as the ICO's work regarding partnerships and consultations on this subject.

The ICO in fact issued a third consultation on Generative AI and Data Protection in April, focusing on the accuracy of training data and model outputs. This consultation concentrates on the use of accurate training data in addition to the link between the specific purpose of the AI model and the need for accurate outputs. The call for evidence closed on 10 May 2024. This third consultation followed previous iterations on (i) the lawful basis for training generative AI models and (ii) the application of the purpose limitation principle at different stages of the generative AI lifecycle.

Please also see our article this month on the recent fourth consultation from the ICO, which is exploring the topic of engineering individual rights into generative AI models. The call for evidence for this consultation closes on 10 June 2024.

Bank of England and Prudential Regulation Authority (PRA)

The Bank of England and the PRA provided an update in response to questions from the Government regarding the delivery of safe and responsible AI and Machine Learning. The update states that both organisations support the Government's pro-innovation framework whilst also noting that existing regulations promote the benefits of AI and Machine Learning. The update also underlines that both organisations will engage with the technology sector, academia and financial service firms to monitor any issues associated with rapid innovation in the AI space.

Financial Conduct Authority (FCA)

The FCA published its own update on 22 April outlining its strategy towards AI. The FCA will look to promote the safe and responsible use of AI by scrutinising systems and processes in place at regulated firms. The FCA also noted that although the existing regulatory framework covers the use of AI, it will consider future regulatory changes if required. In addition the FCA intends to collaborate with the Bank of England, the Payment Services Regulator as well as international organisations in order to align on best practice and future regulatory work.

Competition and Markets Authority (CMA)

On 11 April the CMA published an update paper to its initial review of AI Foundation Models (FM). The paper explores the key developments in the sector and outlines principles for achieving fair competition and consumer protection. A key risk identified is the concentration of FM technology within large firms and the possibility of partnerships between them to entrench their market position.

On 29 April the CMA also released a strategic update on its approach to AI overall. In the update, the CMA recognises the benefits that AI has to consumers and businesses, but emphasises the need for transparency and accountability.

Both updates provide detail on how the CMA intends to use its existing powers, as well as anticipated new legislative powers from the Digital Markets, Competition and Consumers Bill, to investigate mergers and to take action against anti-competitive behaviour. The CMA explains that it has grown its AI capabilities through additional expertise and highlights collaboration with other regulators to ensure consistency in approaches. The CMA will also consider issuing proactive guidance for firms to address any potential uncertainty they have in terms of AI.

Medicines & Healthcare products Regulatory Agency (MHRA)

The MHRA published a report on the impact of AI on the regulation of medical products. Our Life Sciences and Health teams have produced a detailed analysis of this report which can be found here.

Further developments to note:

Ofsted also published a paper on its approach to AI used in the education and social care sectors. 

It will be crucial to monitor the outcome of the upcoming General Election and the subsequent effects on the development of AI regulation in the UK. It remains to be seen whether the current approach will be maintained going into 2025 and beyond but we will continue to provide updates on progress.