Why the business voice needs to be heard on AI regulation

Artificial Intelligence (AI) is already helping to overcome complex societal and economic challenges. More AI adoption will boost productivity whilst contributing to addressing labour shortages, climate change and a stretched healthcare system.

While the UK needs to maximise the opportunity of AI, with increased adoption comes increased scrutiny. The Prime Minister’s recognition that “AI has an incredible potential to transform our lives for the better. But we need to make sure it is developed and used in a way that is safe and secure,” is welcome. Safe AI, however, should not mean less AI. Businesses want to adopt AI but are struggling to navigate.

To support improved AI governance several workstreams are underway, the outcomes of which will have permanent ramifications for UK business:

• The white paper on AI Regulation: a pro-innovation approach
• A global summit on AI safety to be hosted in the UK
• An AI task force formed to help the UK build and adopt safe AI
• The ‘Hiroshima AI Process’, a ministerial forum for the regulation of AI agreed upon at the G7
• The Lords Communication and Digital Committee large language model inquiry

These will determine both if the UK will have a thriving AI sector and if businesses can effectively implement AI.

It is vital that the voice of UK business is heard to support the implementation of an innovative, proportionate regime without compromising safety.

Businesses support the government’s approach but it must get the implementation right

The government’s white paper, AI regulation: a pro-innovation approach, suggests it will take a light-touch, context-specific and outcome-driven approach led by sectoral regulators. This is the right decision, particularly in contrast to the more rigid approach taken by the EU’s recent AI act. Additionally, the government has set out plans to improve the coordination of AI governance where it is currently not joined up, or too varied and difficult to navigate.

To support the government to develop a world-leading AI governance ecosystem, the CBI responded to the white paper consultation and set out recommendations across three themes that ensure a pro-innovation, proportionate, coordinated and trust-building approach is taken:

1. Consider how the UK should best engage with other AI leaders like the US and EU
2. Be prepared to update AI regulatory frameworks as international governance evolves
3. Recognise the UK’s potential to influence AI regulation in third-party jurisdictions
4. Continue promoting AI through key forums including the Autumn 2023 AI Summit

Critical work developing these recommendations was carried out across our UK, Brussels and US offices with the input of CBI members. This unique perspective was crucial to developing national and international positions. As such these recommendations reflect both direct consultation questions as well as additional CBI member priorities.

Read the full AI regulation: a pro-innovation approach CBI consultation response

What next?

This consultation response has built upon a recent CBI AI roundtable and existing CBI AI governance workstreams. These informed our previous discussions with key stakeholders across the AI landscape, including the Vallance review of Pro-innovation regulation and the Commons Science, Innovation and Technology Committee’s AI inquiry. With further significant projects in the coming months, including the AI summit, we want to continue hearing from members across all sectors as we develop cross-economy positions.

Interested members can schedule a meeting to share their views or join the CBI AI working group by contacting Caleb Meath, Senior Policy Advisor - Innovation