Alert
April 6, 2023

Overview of the UK Government’s AI White Paper

Overview

The Department for Science, Innovation and Technology published a white paper on 29 March 2023 titled "AI Regulation: A Pro-Innovation Approach", which sets out the UK Government’s proposals to regulate artificial intelligence (AI) in a pro-innovation manner. The paper acknowledges the potential benefits of AI, such as improving healthcare, enhancing transport systems, and boosting economic productivity, while also recognising the potential risks and challenges associated with this emerging technology.

The proposed regulatory framework has been developed with the intention of being proportionate, trustworthy, adaptable and clear. The Government states that the framework is underpinned by the following five principles that are intended to guide how regulators approach AI risks:

  1. Safety, security and robustness;
  2. Appropriate transparency and explainability;
  3. Fairness;
  4. Accountability and governance; and
  5. Contestability and redress.

The Government confirmed that it will avoid “heavy-handed legislation which could stifle innovation” and hinder the ability to respond to technological advances, and will instead “take an adaptable approach to regulating AI”, allowing regulators to use their expertise to modify the implementation of the principles to suit the specific context of AI in such regulator’s respective sector. Their implementation will be evaluated to identify any barriers and ensure the principles are being applied effectively.

The regulatory framework is designed to achieve the following three objectives:

  1. Drive growth and prosperity by making responsible innovation in AI easier and reducing regulatory uncertainty, which is intended to encourage investment in AI and support its adoption throughout the economy (ultimately creating more jobs);
  2. Increase public trust in AI by addressing risks via the effective implementation of the regulatory AI framework; and
  3. Strengthen the UK’s position as a global leader in AI by establishing a strong position that allows for the UK to shape international governance and regulation and promote interoperability, while minimising cross-border risks and protecting democratic values.

Key regulators are being encouraged to issue further guidance and resources over the next year on how to implement the five principles, and how the principles will apply within their specific sectors. However, there is likely to be some gaps between the various approaches by regulators and therefore, it is possible that legislation may be required to ensure consistent consideration of the principles.

Contrasting Approach to the EU

It seems from the white paper that the UK has taken a different approach, compared to the EU, when it comes to regulating AI. The UK's approach is intended to focus on promoting innovation and experimentation, whilst maintaining a light touch in terms of regulation. Meanwhile, the EU appears to be taking a more cautious approach, heavily reliant on regulation (namely, the EU AI Act), to ensure that AI is used ethically and in the public interest.

This divergence in approach is likely to present challenges for companies currently operating in both markets, as well as for those looking to expand into the other market.

Ultimately, finding the right balance between innovation and regulation is crucial for Government and regulators to maximise the benefits of AI, whilst minimising the potential harms. Consequently, the UK Government has launched a public consultation to elicit feedback from stakeholders in relation to its proposals on regulating AI, in order to implement a proportionate, future-proof and pro-innovation framework.