Absence of AI bill in the King’s speech: a cause for concern?

The King’s Speech, delivered annually, is a critical moment for setting legislative priorities. This year, however, a significant omission has caught the attention of experts—the absence of a dedicated AI bill. Deborah Newberry, corporate affairs director at Kennedys, offers insight into this development, highlighting its implications for various sectors.

The global significance of AI regulation

“Developing AI responsibly is one of the most significant global issues of today,” Newberry comments. With artificial intelligence increasingly influencing every facet of modern life, from healthcare to finance, the need for robust regulatory frameworks has never been more pressing. The King’s indication that ‘appropriate legislation’ to regulate the AI sector is forthcoming has left many wondering about the specifics and timing of such measures.

A deliberate pause or oversight?

The absence of a specific AI bill raises questions about the government’s strategy. “Some may be surprised not to see an explicit bill to regulate AI,” Newberry remarks. She suggests that this might reflect a deliberate choice to avoid rushing into regulation, a sentiment echoing the previous government’s approach. “Might this gap indicate that ministers have heeded the previous government’s approach ‘not to rush to regulate’?” she ponders.

This cautious approach, while potentially fostering innovation, leaves businesses in a state of uncertainty. With the Prime Minister’s manifesto promises in mind, companies must vigilantly monitor the policy landscape to anticipate when comprehensive legislation might be introduced.

Balancing innovation and regulation

A key challenge for governments worldwide is finding the balance between regulation and innovation. “The concern of many is that tougher regulation could stifle innovation,” Newberry highlights, emphasising the delicate act of providing necessary protections without hindering technological progress. “The risks associated with AI cannot be ignored and need to be understood and mitigated alongside the potential gains.”

Learning from the EU

The forthcoming EU AI Act underscores the urgency for clear and consistent AI policies. “The EU AI Act, which will come into force later this year, has further highlighted the need for clear, consistent and coordinated policy that fosters development and uptake of safe and trustworthy systems,” Newberry notes. The divergence in regulatory approaches can create significant challenges for global businesses, complicating product development and leadership decisions.

Implications for the insurance sector

For the insurance industry, understanding AI-related risks is crucial. “For insurers, the extent to which corporates around the world are currently exposing their firms to AI risk – including regulatory risks – will be important to understand,” Newberry explains. Insurers must adapt their strategies to this evolving risk landscape, developing innovative underwriting requirements and AI-focused services.

AI introduces new risks that impact existing insurance lines, such as professional and employer liability, cyber threats, fraud, and directors and officers (D&O) liability. “Innovative insurance products to cover AI-related risk are already emerging, designed to address challenges such as data privacy concerns and algorithmic bias,” she adds. Insurers, policymakers, and other stakeholders must collaborate to ensure a balanced approach that harnesses AI’s potential while safeguarding against its harms.

Looking ahead

As the AI sector continues to grow, the need for comprehensive, well-balanced regulation becomes increasingly evident. The absence of an AI bill in the King’s Speech may reflect a cautious strategy, but it also highlights the pressing need for clear guidance and consistent policies. Businesses, insurers, and regulators must stay vigilant and proactive to navigate the complexities of AI governance, ensuring both innovation and protection in this rapidly evolving field.

Image: Provided by Black Letter Communications.

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.