With the continued development of AI and the lack of overarching regulation in England and Wales, questions arise about whether more stringent measures are needed, particularly given the recent rise in non-consensual image and video generation featuring the likeness of individuals.
Our Commercial Solicitors outline the current regulation of AI in the UK, consider recent ICO privacy concerns related to generative AI, and outline contractual measures businesses can employ with suppliers when procuring AI solutions.
Current Methods of Regulation in the UK
The UK and EU diverge in their approach to AI regulation. In August 2024, the EU implemented the EU AI Act, creating the world’s first comprehensive, legally binding framework for AI development and use.
In contrast, the UK currently has no general statutory regulation of AI and instead relies on specific areas or pre-existing laws (in particular the General Data Protection Regulations (GDPR) which governs the collection and use of personal data and places some restrictions on automated decision making) and empowers existing regulatory bodies such as OFCOM, the ICO and the CMA to take action within their specific sectors.
The UK’s approach to regulating AI is focused on being ‘pro-innovation’, in comparison to the EU’s more active regulatory approach.
ICO Intervention
On 23 February 2026, the ICO issued a joint statement with 60 other international data protection authorities addressing the privacy risks arising from AI-generated imagery.
It comes after a recent surge on social media platforms sparked widespread concern over AI systems which can generate images and videos of identifiable people (including non-consensual intimate imagery, defamatory depictions and other damaging material) without their knowledge or consent.
The joint statement sets out a number of fundamental principles it expects organisations to employ for the protection of privacy and prevention of harm, including:
- implementing robust safeguards to prevent misuse of personal information in respect of non-consensual image generation;
- ensuring meaningful transparency about AI system capabilities, safeguards, acceptable use and consequences of misuse;
- providing effective and accessible mechanisms for individuals to request removal of harmful content with effective response times; and
- addressing specific risks to children via enhanced safeguards and clear, age-appropriate information for children, parents, guardians and educators.
What steps can businesses take?
Businesses should be cautious when either procuring solutions which utilise AI or integrating AI into their own businesses and solutions, and should ensure that appropriate safeguards are in place prior to such implementation.
In light of the guidance provided by the ICO, there are a number of steps that businesses can employ when contracting with third parties to ensure that any risks of utilising AI are minimised, such as:
- reviewing any contractual documentation to check whether the supplier has rights to use customer data for further AI development or training;
- imposing transparency obligations on the supplier that detail the capabilities and limitations of the specific model, including detail of protective privacy measures in place;
- including obligations on the supplier to implement safeguards preventing misuse and the generation of harmful content;
- imposing indemnities to hold supplier to account where harmful or unlawful outputs are generated independently of customer use; and
- including warranties as to the supplier having complied with relevant privacy laws and implemented appropriate safety mechanisms.
Contact Our Commercial Team
If you would like advice on AI regulation, data privacy or implementing AI solutions within your business, our Commercial Solicitors are here to help.
Contact our team today to discuss how we can support you.