Momentum is building around AI regulation in the UK following the reintroduction of the UK Artificial Intelligence (Regulation) Bill (AI Bill).
Initially introduced as a Private Members’ Bill in November 2023 under the Conservative Government, the AI Bill restarted with Labour’s election in July 2024.
It has since been relaunched in the House of Lords, passing its first reading on 4 March 2025.
The AI Bill broadly defines AI as technology that perceives environments through data, processes data using automated systems designed to approximate cognitive functions, and makes recommendations, predictions, or decisions to achieve specific objectives.
It focuses on three primary areas:
- Establishing an AI Authority
- Defining regulatory principles
- Encouraging public engagement
The UK has historically taken a sector-specific, principles-based approach to AI regulation, with oversight from regulators such as the FCA and Ofcom.
The AI Bill proposes a centralized AI Authority to coordinate AI regulation, assess emerging risks, and support AI innovation while maintaining consistency across industries.
The AI Bill formalizes five key principles for AI regulation:
- Safety, security, and reliability
- Transparency and explainability
- Fairness
- Accountability and governance
- Mechanisms for contesting and redressing AI-related issues
The AI Bill also requires businesses developing or deploying AI to follow these principles and ensure AI applications remain inclusive and non-discriminatory. Additionally, businesses must appoint an AI Officer responsible for overseeing ethical and unbiased AI use.
The AI Authority must involve the public in shaping AI regulations to align them with AI’s risks and opportunities.
Despite passing its first reading, the AI Bill faces an uncertain future. As a Private Members’ Bill in the House of Lords, it lacks government backing and may not secure cross-party support in the House of Commons.
The UK Government’s AI Opportunities Action Plan, published on 13 January 2025, prioritizes innovation over regulation. The plan outlines measures to:
- Support AI developers
- Position the UK as a global AI hub
- Attract international AI talent
The government also declined to sign the Paris AI Summit’s Statement on Inclusive and Sustainable Artificial Intelligence in February 2025. Signatories committed to principles such as openness, transparency, ethics, safety, and security.
This decision signals the UK’s preference for a pro-business, innovation-driven approach rather than a regulatory-heavy framework.
The AI Bill takes a more flexible approach compared to other global regulatory models.
- EU AI Act: The AI Bill is significantly less restrictive. While both introduce central AI regulators, the EU AI Act includes a detailed compliance framework and a strict liability regime for regulatory breaches.
- US AI Regulation: The AI Bill aligns more closely with the US approach, where regulation remains largely principles-based. The Trump administration recently replaced a Biden-era executive order on AI regulation with a deregulation-focused AI Action Plan aimed at accelerating AI innovation.
The AI Bill underscores the broader debate between regulation and innovation. Its fate will likely depend on how the UK government balances these competing priorities.
