Why UK and US must stay closely aligned on approach to AI

Our relationship with the US can still thrive without a formal free trade agreement, writes James Tait.

Investment flows across the Atlantic and millions of Brits work for US companies here and vice versa in the US, and this is only likely grow.

Forging common frameworks to face new challenges is essential. The Atlantic Declaration has been agreed and six Memorandums of Understanding were signed last year which focus on key sectors including life sciences, clean energy, space and tech.

The UK and US are deeply embedded in defence and security intelligence. The threat from misinformation and cybersecurity is increasing in the current geopolitical climate and is a key area of concern with the upcoming elections on both sides of the Atlantic.

Whoever the newly elected leaders of the US or UK are, there has often been a proactive and common outlook to challenges. The rapid advancement of artificial intelligence (AI), which is dominating discussions in the legal industry in which I work, is likely to create new opportunities for our territories to collaborate but, at the same time, poses common threats.

There was a lot of enthusiasm and experimentation with AI in 2023 but the tech challenges for 2024 include the uncertainty around AI, the rapid growth of the cloud and a greater focus on how to regulate and optimise AI for the “public good”.

The AI Act in the EU is a political agreement and takes a risk-based approach and is likely to be published this spring. In comparison, the US looks to be taking a lighter touch and it is likely the UK will be more aligned to the US’s approach.

The UK government has an ambition to become an “AI superpower”. This might be less as an innovator, but rather setting an example of how to utilise AI responsibly and safely whilst empowering businesses to take advantage of the extraordinary opportunity that AI offers.

In the UK, a White Paper is expected this March and is likely to set out whether more regulation is needed in the UK. The question for businesses based in the UK and in the Midlands is how do organisations commercialise their offerings which incorporate AI or are AI-centric and how do businesses address AI in their businesses, supply chains and legal contracts?

AI is not sector specific. It will, of course, impact tech companies significantly, but many businesses have a digital element and will be impacted one way or another.

For example, cookies, algorithms and chatbots are increasingly used for businesses with a digital presence. Consumers and regulators will be expecting transparency so documentation and understanding data in your organisations and supply chains will be increasing important as the legal and political landscapes evolve.

For US or UK businesses with an online presence in Europe, or those supplying services on the continent, they will still have to consider how European regulation and legislation around AI and data impacts their businesses.

The fact the UK and US are both outside the EU means that it would be more beneficial and cost-effective if, together, we collaborate on the development of regulatory frameworks and commercial approaches to utilise the AI market both in Europe and globally. No doubt there will be significant advancements in this regard in 2024 and beyond.

James Tait is president of the Greater Birmingham Transatlantic Chamber of Commerce and the head of Browne Jacobson’s national employment law team

This column first appeared in the February edition of Chamberlink magazine