Firms can expect to hear soon, in a white paper to be published by the Office for AI, whether general AI-specific regulation will be introduced in the UK. EU law makers are currently scrutinising separate plans for a draft new EU AI Act. Both developments are expected to focus on issues such as transparency, explainability and governance. However, any new rules would only apply to technology that fits within the definition of AI in new legislation or regulation. Figuring out whether the technology firms use will be in-scope is therefore an important preliminary task for financial services businesses.

The White Paper on Artificial Intelligence (the "AI White Paper"), recently released by the European Commission, provides the clearest indication yet that the EU is seriously considering regulating the development and deployment of artificial intelligence ("AI"). If adopted, the Commission's proposals would likely increase the already significant compliance burden imposed on technology-focused and technology-dependent businesses operating in the EU, and may lead to significantly divergent practices between the EU and the rest of the world. It is evident from the text of the AI White Paper that the Commission considers that its proposals would help to establish the EU at the centre of global AI technology development and deployment, and to encourage investment in the EU in this space, although it is not entirely clear that a lack of additional regulation is currently holding the EU back. The AI White Paper charts a rough course for the potential future regulation of AI technologies in the EU. It will require much greater detail and refinement before it can realistically progress to full-blown legislation.