UK Technology Law Shorts - March 2023

Commercial technology on the horizon

In this update we highlight a number of tech strategy policies coming out of the UK, as well as an update on the Online Safety Bill.

1. UK: Review of pro-innovation regulation of digital tech

On 15 March 2023, the Government published the results of, and its response to, the review on pro-innovation regulation of digital technology carried out by Sir Patrick Vallance. The key message was that Government should not regulate emerging technology too early as this can stifle innovation; regulation needs to be flexible, agile and proportionate and Government should continue to engage with the industry in shaping a regulatory framework. The report also highlights the need for the Government and regulators to rapidly build expertise necessary to shape regulation at the right time, as well as to work with global partners to move towards international harmonisation.

Whilst focusing on specific challenges for AI and data, the report also addresses regulatory barriers for autonomous vehicles, drones, cyber security, and space and satellite technologies. The Government also confirmed it will bring forward the Future of Transport Bill (when there is Parliamentary time), and the Government’s response to the modernising vehicle standards consultation is expected imminently.

Impact: The report sets the scene for the tech strategies also published this month, flagging a number of challenges, including keeping up with the pace of innovation and the wide range of emerging tech and the fragmented approach of regulators with different goals.

2. UK: International Tech Strategy launched

On 22 March 2023, the Government published a policy paper outlining its ambitions to become the world’s most innovative economy at the forefront of future technologies by 2030. It aims to achieve this by working alongside international partners to shape global tech standards which embrace free world values and embed the principles of openness, responsibility, security and resilience. Crucial to realising this vision will be Government intervention (through pro-innovation regulation) and support from industry. The focus is on AI, quantum, semiconductors, telecoms and engineering biology.

Impact: These are bold ambitions; the strategy sets out the Government’s aim for the UK to evolve from a tech leader to a global superpower. To achieve this, investment in developing tech and data skills will be required. With tech booming, not just in the UK, but across the globe, there is a highly competitive market for qualified people and buying in those skills and retaining people can be expensive.

3. UK: Launch of National Quantum Strategy

On 15 March the Government launched its 10 year National Quantum Strategy and announced a £2.5 billion investment programme to support this. The Government’s ambition is for the UK to be world-leading in quantum science and engineering by supporting businesses increase their investment into the quantum tech market. It also aims to drive the use of quantum tech in the UK and to create a regulatory framework.

The Government has said it will establish a Regulatory Horizons Council Review of the need for quantum tech regulation and establish the Office for Quantum, and has already launched an inquiry on turning quantum technology breakthroughs into commercial products, which closes on 28 April 2023.

The TMT sector has a huge part to play in this collective undertaking to bridge the commercialisation gap and to support early-stage innovative businesses to make the UK the most attractive place for global quantum talent. Furthermore, as the first use cases enter the UK market, they will be applied alongside other technologies that will require input from the TMT sector to make commercialisation a success.

4. UK: Government AI White Paper and AI regulation consultation

On 29 March 2023, the Government launched its long-awaited AI White Paper with the aim of driving responsible innovation and maintaining public trust in the technology. The White Paper focuses on core principles for use of AI, including safety, security, robustness, transparency, explainability, fairness, accountability and contestability. The Government plans to empower existing regulators to devise approaches to address the use of AI in their areas, rather than to establish a specific AI regulator. On the same day, it launched a consultation seeking views on the proposals set out in the White Paper, which closes on 21 June 2023.

Impact: The Government’s sectoral approach is a divergence from the EU’s all-purpose AI Act. Whilst it is good to see AI regulation being addressed, any legislation will need to embody the OECD Principles for Trustworthy AI to ensure convergence with international approaches to AI regulation, as well as to tackle public mistrust of the technology.

5. UK: Online Safety Bill update

On 14 March 2023, Ofcom published its planned approach to supporting organisations in carrying out risk assessments under the Online Safety Bill.

The Bill, which is making its way through Parliament, currently provides that in-scope organisations will need to carry out risk assessments in relation to illegal content and content that is harmful to children appearing on their online services. Ofcom’s view is that risk management will need to be owned at senior levels, with risk management activities reported, scrutinised and continually assessed to ensure they meet their objectives.

Impact: The Bill will introduce a new regulatory regime to address illegal and harmful content online, a trend that is occurring globally. All organisations should consider if they come within the scope of the Bill due its wide scope of application and, if so, will need to be ready to carry out the mandated risk assessments once the new regime comes into force.

Further reading

• UK and EU: Technology Law Shorts
• UK government’s white paper on AI – innovation balanced with protection from harm
• Supply chain horizons: what you need to know?
  
• Legal Telescope: A view from our technology lawyers - 2023
• Technology, Media and Telecoms Hub

Edited by Clare Johnston in our knowledge team.