New EU artificial intelligence regulation: guidance for UK businesses

The EU´s groundbreaking General-Purpose Artificial Intelligence Code of Practice impacts UK businesses developing or using artificial intelligence systems for the European market.

The European Union has introduced its General-Purpose artificial intelligence Code of Practice, establishing the first global regulatory standard for General-Purpose artificial intelligence (GPAI) systems. This Code supplements the EU artificial intelligence Act, which came into effect a year earlier, and sets far-reaching expectations for oversight and compliance within the artificial intelligence sector across Europe.

For UK-based businesses, the new regulatory environment is highly relevant. The scope of the EU artificial intelligence Act and its associated Code of Practice extends beyond the European Union, capturing any company that develops or deploys artificial intelligence systems targeting EU markets. Though adherence to the Code is technically voluntary, it offers practical incentives—businesses in compliance can expect simpler enforcement processes should the artificial intelligence Act apply to their operations.

Wayne Cleghorn, an artificial intelligence and data specialist at Excello Law, played a direct role in drafting the Code. He underscores that the framework represents a foundational step in global artificial intelligence governance, one which is destined to evolve as technology and best practices advance. Cleghorn notes the urgency for organisations to prepare: by August 2025, every EU member state will be required to appoint regulatory authorities and set up national penalty regimes, forcing businesses to turn regulatory theory into operational reality.

Accompanying the Code are detailed guides and documentation tools to support understanding and compliance. Cleghorn recommends that businesses form multidisciplinary teams, seek expert legal advice, and cultivate proactive approaches to meeting regulatory requirements. The message for UK businesses—and indeed, for technology providers worldwide—is unmistakable: early preparation for artificial intelligence regulation is critical as enforcement draws near. As the landscape shifts, legal counsel such as Excello Law stands ready to advise on compliance, risk management, and best practices in regulatory readiness for artificial intelligence systems.

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