The UK Government has published a progress update on its Regulation Action Plan and
its next steps. The plan outlined reforms aimed at reducing regulatory hindrances and
enabling innovation. This article considers the items relevant to digital services, AI and technology.
The government has taken steps which it says aim to manage the complexity of regulation by enabling the
use of digital verification services, making it more straightforward for businesses to comply
with and demonstrate compliance with regulatory requirements. Administrative savings of
over £500 million are estimated from the widespread use of digital verification services.
In an effort to mitigate the administrative burden for businesses, the government has also
announced that HMRC will become a digital-first organisation with a minimum of 90% of
customer interactions to be carried out digitally by 2029 to 2030. This will include the
expansion of the range and type of online services it provides to businesses and it says that it will also make sure that they meet the standards set out in the HMRC Charter.
The Department of Business and Trade (DBT) will run a series of policy sprints across
specific sectors to identify regulatory barriers which affect companies with innovative
business models. It will look at regulatory mechanisms that may be hindering healthy
competition and innovation.
The government will also develop proposals for the greater digitalisation and streamlining of
processes within the aviation, space and maritime sectors, including by using AI, to
provide transparency for the industry. The Civil Aviation Authority is implementing
multiple measures to enhance operational processes for users, including digitising
operational approvals through the UK Specific Operations Risk Assessment platform and
developing an AI modernisation tool to assist users to enable quicker authorisations.
The government will work with the BSI and UKAS to promote digitalisation of systems and
development of smart, machine-readable standards to increase business access and future-
proof the UK’s standards and accreditation framework.
New measures to modernise the digital certification process for energy infrastructure
planning applications will also be introduced. Greater use of AI and new IT systems will aim
to reduce the burden of compliance and improve regulator efficiency. Regulators will be
encouraged to adopt AI and digital tools to improve efficiency. The Office for Product Safety
and Standards is exploring AI-driven certification processes to reduce delays and improve
compliance monitoring. A new cross-government AI risk framework is in development to
provide guidance for regulators in assessing and mitigating AI-related risks.
Across the entire UK economy, 60% of businesses responding to the Technology Adoption
Review call for evidence stated that regulatory and policy obstacles are a barrier to AI adoption.
Therefore, the government is consulting on establishing an AI Growth Lab. This is aimed at enabling carefully supervised use of responsible AI applications and would allow cutting-edge AI products to be piloted within live market environments. The government will consult on whether the Lab should possess statutory authority to modify or disregard specific regulations temporarily for qualifying participants. The Lab will be aimed at accelerating regulatory determinations on new technologies.
The government will also be asking businesses about where a regulatory sandbox approach would be most beneficial elsewhere in the economy to address opportunities and challenges beyond AI, particularly in areas of new technology or rapid development.
