Is your business ready for AI regulation?
AI continues to move forwards at a ridiculous pace. New models are popping up weekly. Things you couldn’t do a week ago now seem second nature. But behind the headlines about innovation, is good old regulation.
Whether it’s GDPR or new legal frameworks emerging to tackle foundation models, in the UK, AI won’t remain unregulated for long. This side of the Channel, regulation is still developing. But globally, the picture is weirdly fragmented. While the EU pushes ahead with stringent, top-down rules in the form of the EU AI Act, the US is now actively dismantling oversight structures. UK businesses navigating this patchwork need to be informed, proactive and prepared.
The UK’s direction is soft-touch for now, but is it tightening?
So far, the UK has resisted introducing sweeping AI legislation. In its February 2024 response to the AI Regulation White Paper, the government confirmed it would not create a central AI regulator, opting instead to empower existing regulators such as the FCA, CMA, Ofcom, and MHRA to lead within their respective sectors (UK Government White Paper response, 2024). But this approach is evolving with the reintroduction of the AI Regulation Bill in March. In January 2025, the government also published its AI Opportunities Action Plan, outlining a series of actions to strengthen the UK’s position in global AI development and governance. As part of this:
- Spring/Summer 2025: The government is expected to release an AI Regulation Roadmap, which will clarify regulatory responsibilities, outline cross-sectoral coordination, and detail how innovation will be supported alongside appropriate accountability.
- Late 2025: During the next Spending Review, government will assess whether regulators have adequate powers and funding to handle AI oversight. If not, legislation is potentially on the table.
While a standalone UK AI law isn’t imminent, existing laws already apply, particularly UK GDPR, the Equality Act 2010, and consumer protection legislation. Businesses using AI in hiring, pricing, customer service, or automated content need to already ensure compliance.
Across the Atlantic: US deregulation ramps up
While the UK nudges regulators toward readiness, the United States is heading the other way. In January 2025, President Trump signed Executive Order 14179, titled ‘Removing Barriers to American Leadership in Artificial Intelligence’ (White House, 2025). This order rolled back President Biden’s 2023 AI Executive Order and ended requirements for:
- Safety and security testing of high-impact models
- Transparency about AI training data
- Civil rights and algorithmic bias audits
According to the official White House fact sheet, this move aims to ‘free American innovators from regulatory red tape’ and to enhance global competitiveness (White House Fact Sheet, 2025). This has triggered criticism from workers’ rights groups and safety advocates. As The Guardian reported, the rollback of safeguards puts American workers at real risk of unchecked surveillance and unfair treatment by AI systems (The Guardian, March 2025).
Others, including former AI policy advisors, warn that this deregulatory stance could harm the development of trustworthy AI, allowing bias and misinformation to go unchecked (Financial Times, 2025). Some US states, notably California and New York, are responding with their own legislation, aiming to fill the gap with rules requiring transparency, impact assessments, and consumer protection for AI systems (CalMatters, March 2025).
What should UK businesses do?
Even without a new UK law, the direction feels like it will be more oversight, more transparency, more accountability.
If you are a Uk based business, here’s a framework to help you prepare:
1. Map your AI use
List every AI-powered tool, from Microsoft Copilot and Salesforce AI to in-house or third-party vendor products used for decision-making.
2. Assess risks
Does the system process personal data? Influence pricing, hiring, or customer experience? Could it result in unfair or opaque decisions?
3. Build explainability
Document what your AI tools do, how they’re trained, and what guardrails are in place. Be prepared to explain them in plain English.
4. Assign oversight
Create a governance structure. Even if informal, ensure legal, compliance, HR, and senior leadership are all involved.
5. Prepare for transparency
Clients, investors, and regulators will soon expect a clear record of how and why AI systems were adopted and assessed. Don’t wait until it’s a legal requirement.
Final thought
The UK is not regulating AI yet, but it will likely come. Your use of AI is already subject to scrutiny under data protection and discrimination laws. And with regulation tightening globally, it makes sense to build robust governance now.
At iwantmore.ai, we help organisations understand their AI exposure, design risk-aware strategies, and prepare for whatever the next phase of regulation brings. Let’s talk if you want your AI approach to be proactive, not reactive.
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