AI is changing the world and governments across the globe are grappling with how to reap the benefits of it whilst also addressing the risks and harms that it brings.   

Here we look at the UK’s plans for regulating AI (as they stand to date) and the impact on businesses in the Media, Entertainment and Sport industries. 

What was the former Conservative government’s approach to AI regulation in the UK?

The former Conservative government laid out its proposals for regulating AI in a white paper in March 2023. In this paper, they outlined a set of 5 non-binding ‘principles’ for existing UK regulators to follow on a non-statutory basis to facilitate safe and innovative use of AI in the industries that they regulate. 

No binding measures for AI were planned for the short term. The intention was that the framework would develop in an agile way in accordance with developments in AI itself.

Existing regulators in different sectors would have the responsibility of managing AI systems within their remits and can adapt depending on the risks of a particular AI system used in a particular context.

What is the new Labour government’s approach to AI regulation in the UK? 

In Labour’s manifesto in June 2024, they made three pledges on AI regulation, the most important of which was:

“Labour will ensure the safe development and use of AI models by introducing binding regulation on the handful of companies developing the most powerful AI models”. 

The King’s speech on 17 July 2024 stated that the new Starmer-led government “will seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models.”

In the Prime Minister’s introduction, Starmer stated, “we will harness the power of artificial intelligence as we look to strengthen safety frameworks”. 

Labour’s overall approach to AI regulation remains unclear but this statement shows that Labour’s priority is to specifically regulate the developers of the most powerful artificial intelligence models, as was set out in their manifesto. 

Many had been expecting Starmer to table an “AI bill” but it looks as though Labour wants more time to prepare and they may consult further with stakeholders. We are monitoring developments closely. 

Starmer’s plans in the King’s speech to bring in legislative measures on developers diverge from Rishi Sunak’s approach of holding off bringing in any binding measures. 

To date, the proposals in the white paper for existing regulators to regulate AI still apply. 

How does all this affect businesses in Media, Entertainment and Sport?

Existing regulators were required by Sunak’s government to publish an update outlining their strategic approach to AI by 30 April 2024. They had to demonstrate how they are responding to AI risks and opportunities and to show how they will apply the white paper principles and regulate AI within their sectors. 

In particular, the AI strategies of the Office of Communications (“OFCOM”) and the Competition and Markets Authority (“CMA”) may affect businesses in the Media, Entertainment and Sport industries. 

For details on the AI strategies of OFCOM, the CMA and other key regulators, please see our article here. 

It is also important to mention the EU’s AI Act which will come into force on 1 August 2024, with a majority of the provisions becoming applicable from 2 August 2026. This is a comprehensive law with extra-territorial scope and significant penalties for non-compliance. For example, businesses in Media, Entertainment and Sport which are using AI could find themselves in scope in certain circumstances. We are advising our clients to begin preparing their compliance now if they have not started this already.