With artificial intelligence (AI) developing at a blistering pace, governments across the globe are moving quickly to modernise laws and regulatory policy. It’s hard to know where to begin in understanding who is homing in on what, but luckily our Associate Sponsors, Shakespeare Martineau are staying abreast of international movements, as well as keeping a close eye on UK government announcements. In this guest post, Selina Hinchliffe, commercial services partner at the firm, highlights significant cases and explains the UK’s approach to regulation so far.
From Denmark giving people copyright ownership of their likeness to combat deepfakes, to the US ruling that Meta’s use of authors’ work in AI training counts as fair use – it’s clear lawmakers are experimenting to strike the right balance between ethical protection and technological progress.
By contrast, the UK appears to be trailing other nations, despite the Prime Minister’s pledge that it will become a “world leader in AI”. The government insists its ‘pro-innovation’ stance on AI regulation remains a priority, as noted in section 1.4 of its AI Opportunities Action Plan. While some view this hands-off approach as inaction, the UK’s lighter regulatory touch may actually prove to be the most pragmatic strategy in the long run.
The difficulty of regulating fast-moving technology
The breakneck pace of AI’s development makes regulation particularly challenging. Beyond its growing influence, AI raises thorny legal questions, especially around copyright, as highlighted by Getty Images suing Stability AI for allegedly using its images without permission.
But reacting too quickly with sweeping laws may be counterproductive. Rushed legislation risks stifling innovation rather than enabling it. The smarter path is measured – gaining a clear understanding of AI’s opportunities, its economic potential and the legal challenges it presents, before building a regulatory framework on that foundation.
Creative industries in the middle
Unregulated AI poses serious risks to intellectual property, with potential consequences for creative sectors. UK creators have already voiced concerns – for example, this year’s #MakeitFair campaign, which saw leading newspapers like The Times and The Guardian dedicate their front pages to highlighting how unregulated AI could harm creators.
Alongside this, questions over data use and broader ethical considerations will continue to grow. Striking a balance between supporting innovation and giving creators confidence to keep producing is one of the UK’s toughest tasks.
Why the UK is taking a slower approach
There’s no doubt AI regulation is complex. Governments that legislate hastily risk having to revisit and amend laws when they fail to deliver. The UK’s decision to wait and observe could mean that, in time, it becomes a hub for AI development.
By holding back, the UK can assess how AI progresses and track how regulations in other countries perform. That includes watching how litigation trends evolve, whether rapid development slows and how global investment responds.
Over-regulating too early could dampen growth and limit economic benefits. The UK, meanwhile, has signalled its broader ambition – to become a global enabler of AI.
Signs of where regulation may head
Delaying regulation doesn’t mean ignoring it. The UK is already making cautious moves, with proposals put forward under the UK Artificial Intelligence (Regulation) Bill. Suggested measures include requiring businesses to be transparent about how they test or deploy AI, appointing dedicated AI officers and even creating a national governing body to oversee AI. These early steps suggest the UK is not out of step, but rather carefully setting the stage for future regulation that doesn’t derail innovation.
Copyright and data mining
The likeliest starting point for UK legislation will be around copyright and fair use, an area full of uncertainty.
Data mining rules, in particular, are expected to be front and centre. The UK will need to strike a balance between protecting rights and staying competitive with the EU’s more open text and data mining exemption, which lets AI developers innovate while still allowing creators to opt out. Addressing this issue head-on would give both businesses and creators more clarity, and will test the government’s ability to support both sides fairly.
Getting the balance right for the future
When regulation does come, it must allow AI to be used responsibly without blocking growth. With the UK already hosting twice as many AI companies as any EU nation, the opportunity to lead globally is significant. The challenge is to create a framework that supports innovation, strengthens trust and benefits the economy.
As AI continues to reshape business, law and creativity, staying ahead of regulation is critical. Our cross-disciplinary team is already helping clients navigate the legal, commercial and ethical challenges posed by AI. If you want to prepare your business for what’s ahead – or understand how upcoming AI regulation may affect you – we’re here to support you.