Following the birth of the internet some 40 years ago, the next major technological development likely to impact businesses is artificial intelligence (AI). This technology has the ability to assess large volumes of data, identify patterns and trends, and support businesses in making more informed decisions. The result is improved service delivery, greater operational efficiency, and cost savings - particularly by eliminating repetitive tasks and reducing human error.
The previous government published an AI white paper on the use of artificial intelligence in the UK, outlining several key principles that remain relevant regardless of which party is in power. These include:
- “safety, security and robustness: applications of AI should function in a secure, safe and robust way where risks are carefully managed (cyber-attacks).
- transparency and explainability: organisations developing and deploying AI should be able to communicate when and how it is used and explain a system’s decision-making process in an appropriate level of detail that matches the risks posed by the use of AI
- fairness: AI should be used in a way which complies with the UK’s existing laws, for example the Equality Act 2010 or UK GDPR, and must not discriminate against individuals or create unfair commercial outcomes
- accountability and governance: measures are needed to ensure there is appropriate oversight of the way AI is being used and clear accountability for the outcomes
- contestability and redress: people need to have clear routes to dispute harmful outcomes or decisions generated by AI”.
The current government has recognised AI as “the defining opportunity of our generation… a future revolution on the horizon…” and is committed to “building cutting-edge, secure, and sustainable AI infrastructure”. By spring 2025, it plans to publish a long-term strategy for the UK’s AI infrastructure, underpinned by a 10-year investment commitment.
Although there are currently no binding regulatory requirements specifically governing AI, the government intends to address this regulatory gap by establishing a “Regulatory Innovation Office.” This body will be tasked with introducing binding regulations for businesses developing advanced AI models, to ensure their safe and ethical deployment.
Clearly, AI is likely to impact businesses. Ideally, they should consider an AI policy with risk management protocols that make their staff aware of the dos and don’ts of using AI in the workplace. The misuse of AI could, amongst other things, breach data protection laws, intellectual property rights or anti-discrimination laws.
Businesses must also weigh the benefits of AI against its drawbacks. These include the loss of human interaction and empathy, reduced development of human skill sets due to over-reliance on automation, ethical challenges, the cost of staff training, and resistance from employees reluctant to adapt. Furthermore, AI adoption may lead to job displacement and redundancies, particularly where human roles are replaced by automated systems.
If you require any further assistance, please do not hesitate to contact our HR/Legal Advice Line team at 01455 852 028.
