Part 1 - UK AI regulation

Published on 01 June 2026

This is Part 1 of 'Regulation of AI'

The UK government has consistently said that it would adopt a pro-innovation and business-friendly approach to regulating AI. There is currently no standalone AI legislation in the UK. In the last few years, the government has blown hot and cold about preparing an AI Bill but no draft has been released to date. Information released about the AI Bill previously has said it is intended to target the "most advanced AI models" and make existing voluntary commitments between companies and the government legally binding. The Bill was expected to be published in late 2024 but has been delayed since that date, apparently to allow the government to align with the US' more pro-innovation stance (see Part 3 – AI Regulation in the US). 

In the absence of the AI Bill, guidance can be found in the government's White Paper published on 29 March 2023 and updated in its response to the White Paper in February 2024. Key elements of the White Paper are:

  • Five values-focused cross-sectoral principles for regulators to interpret and apply within their respective domains, intended to promote responsible AI use (see The Ethics of AI – the Digital Dilemma for more information about the principles)
  • No new AI regulator – instead existing regulators, using context-specific approaches will guide AI development
  • Central support and monitoring via a steering committee to coordinate regulators

Four key regulators are leading the way on implementing the AI principles under the umbrella of the Digital Regulation Cooperation Forum (DRCF): the Information Commissioner's Office (ICO), Ofcom, the Competition and Markets Authority (CMA) and the Financial Conduct Authority. The DRCF had set up the AI and Digital Hub, via a pilot, to advise on AI regulatory compliance in a coordinated way. Its initial term terminated in April 2025. Its successors are the Thematic Innovation Hub – to provide regulatory advice on priority topics such as agentic AI and the Digital Regulatory Library, a prototype digital library to bring together guidance and regulatory material from the four DRCF regulators. These four regulators also have their own approach to AI regulation – see table below.

ICO

CMA

FCA

Ofcom

  • Published a 4-part consultation series on generative AI and data protection, which it responded to in December 2024
  • In June 2025, via the Data Use and Access Act 2025, introduced changes to automated decision-making rules
  • In January 2026, announced that it will publish a statutory code of practice focusing on the use of AI and automated decision-making for those developing or using AI
  • Launched an initial review into AI models in May 2023
  • In the second stage of its review in April 2024, published an update paper and update report on AI models
  • Outlined steps businesses exploring agentic AI should take to protect consumers, in March 2026 research briefing

 

  • Launched the AI Lab to allow the FCA, firms and wider stakeholders to discuss AI
  • With the Bank of England, published their third survey on AI and machine learning
  • Launched a review, in January 2026,into the implications of advanced AI on consumers, retail financial markets and regulators
  • Opened the Supercharged Sandbox giving businesses the opportunity to test and develop AI use cases

 

  • Is implementing and enforcing the Online Safety Act as it applies to generative AI tools including chatbots
  • Will be alive, in its regulatory thinking, to the House of Commons Library research briefing on how AI content should be labelled

 

 

Further policy, tools and guidance for organisations will come from bodies such as the: (i) AI Security Institute; (ii) the AI Policy Directorate; and (iii) the Responsible Technology Adoption Unit.  

In January 2025, the government published its AI Opportunities Action Plan to ramp up AI adoption across the UK. The Plan outlined a change in focus for UK regulators away from enforcement activities to them actively promoting AI innovation within their sectors. Key initiatives include new AI Growth Zones to build more AI infrastructure, increasing the public compute capacity 20x, and creating a new National Data Library to harness the value in public data and support AI development.

In March 2025, a Private Members' Artificial Intelligence (Regulation) Bill was introduced to the House of Lords. It did not proceed beyond its first reading. The Bill aimed to create an AI Authority that would collaborate with relevant regulators to construct regulatory sandboxes for AI.

Lastly, in May 2026, the King’s Speech Background Briefing Notes announced a new “Regulating for Growth Bill” which will create sandbox powers (legal powers to allow existing rules to be temporarily relaxed, under strict controls, to test new products and technologies in real-world settings across multiple sectors where existing regulatory frameworks currently slow innovation) and reinforce the focus of regulators towards growth and AI innovation.

 

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