Technology & Digital round-up: October 2024

Here’s your top 3

#1: UK signs international AI treaty

The United Kingdom has signed the first legally-binding international treaty governing the safe use of artificial intelligence. The government says that once the treaty is ratified and brought into effect in the UK, existing laws and measures will be enhanced, and it will work closely with regulators (among others) to implement the new requirements. Meanwhile, the European Commission announced that over 100 companies have signed the EU AI Pact and its voluntary pledges, ahead of EU AI Act implementation.

“These developments are indicative of the increased level of activity we’re seeing globally when it comes to tackling AI regulation. While the UK has no plans to introduce wide-ranging legislation like the EU AI Act, we know that highly-targeted legislation is on the agenda which will focus on the most powerful AI models.

“We’ve also recently seen the introduction of a new Private Members’ Bill in the House of Lords, to regulate the use of automated and algorithmic tools in decision-making processes in the public sector. While this type of Bill rarely becomes law, it shines the spotlight on a topic which the government will need to grapple with as AI use increases and moves into the mainstream.“ 

– Sally Mewies, Partner and Head of Technology & Digital

#2: Implementation of the Digital Markets, Competition and Consumers Act

We’ve talked in previous editions of the Technology & Digital round-up about the Digital Markets, Competition and Consumers Act which was passed in May. Since then, we’ve been waiting to hear from the government about its plans for implementation. These were recently confirmed in Parliament.

The aim is to commence some parts of the Act in December 2024 or January 2025. These include Part 1, which will bring the new digital markets regime into effect. We’re told that the Competition and Markets Authority is expected to launch the first ‘Strategic Market Status’ investigations shortly afterwards. April 2025 will see changes to the enforcement of consumer protection law and replacement of the unfair trading regulations. Reforms to subscription contracts aren’t expected before Spring 2026 at the earliest.

“The respective parts of the DMCC Act will soon come into force. Businesses should be alive to what this means for them, ensuring compliance measures are proactively implemented. Once we have sight of the secondary legislation and guidance on the regulator’s new powers, we’ll be publishing our insights on how to prepare practically for the upcoming changes.”

– Della Heptinstall, Associate, Competition

#3: Boosting the UK’s cyber resilience

We’ve seen a number of recent developments aimed at boosting the UK’s cyber resilience. The Information Commissioner’s Office and National Crime Agency signed a memorandum of understanding setting out how both organisations will cooperate to improve the UK’s cyber resilience. And the government recently announced that UK data centres will be given ‘Critical National Infrastructure’ status, opening up greater government support in preventing and recovering from critical incidents such as cyberattacks. This follows a proposed £3.75 billion investment in Europe’s largest data centre in Hertfordshire.

“With the ever-present threat of cyberattacks to businesses and the country’s critical infrastructure, we’re seeing an intensification of efforts to tackle this crucial issue on a number of fronts. We await with interest publication of the Cyber Security and Resilience Bill, mentioned in the King’s Speech.”

– Nick Stubbs, Partner, Commercial

More legal and regulatory developments…

• The Information Commissioner’s Office welcomed LinkedIn’s confirmation that it has suspended training generative AI models with information relating to its UK users pending further engagement with the ICO.
• In related news, the ICO responded to Meta’s decision to resume its plans to use Facebook and Instagram user data to train generative AI.
• The ICO confirmed it will publish updated guidance for consultation later this year on the use of cookies and similar tracking technologies, and set out its position on the ‘consent or pay’ business model.
• The government is consulting until 3 October on proposed changes to the annual data protection fee payable to the ICO by data controllers.
• A CMA investigation provisionally found that Google is using anti-competitive practices in open-display ad tech.
• The European Commission is due to consult in Q4 2024 on standard contractual clauses for the transfer of data to third country controllers and processors subject to the General Data Protection Regulation, for adoption in Q2 2025.
• UNESCO consulted on new guidelines for AI use in judicial systems.

…and in other news

• Ahead of the AI Action Summit being held in France in February 2025, the UK will host a conference in San Francisco in November for discussions with AI developers on how they can put into practice commitments made at the AI Seoul Summit in May, the most recent major global gathering on AI.
• The International Chamber of Commerce produced a narrative on business considerations for the trustworthy, responsible and ethical development of AI, outlining the 4 pillars of global AI governance from the perspective of global business and citing real-life examples.
• We’ve also seen new case studies in a report from the ICC which provides guidance for businesses and governments seeking to digitalise trade.
• In related news, the UK-Ukraine Digital Trade Agreement entered into force on 1 September. It’s described as one of the world’s first digital only trade agreements, which opens the door to wider shifts to digital trading systems.
• The National Cyber Security Centre issued guidance for organisations on implementing strong methods of multi-factor authentication for accessing corporate online services.
• The NCSC and its international partners advised individuals and organisations to take protective action in response to a China-linked campaign targeting thousands of internet-connected devices.
• We’ve also seen the NCSC: release a blog post on whether a Software Bill of Materials (or SBOM) can provide organisations with a better insight into their supply chains; and discuss how existing NCSC guidance can help those looking to develop and deploy ‘digital twins’.
• The government announced new support for UK semiconductor scale-ups to advance innovations, after a recent report valued the sector at almost £10 billion.
• UK researchers will use new tech to provide better flood and drought warnings to protect homes and businesses.
• And finally, the Guardian reports that oil and gas giant BP will use AI to speed up the decision-making of its engineers.

How we can support you

If you have queries about any of the points covered in this edition of the Technology & Digital round-up, or need further advice or assistance, please get in touch with Sally, Nick, Luke or one of our Technology & Digital experts.

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