ICO publishes response to Government with regulatory proposals for AI and data transfers to promote economic growth

The ICO highlighted that it will produce a single set of rules for business developing or using AI products, to foster innovation and allow for responsible investment while safeguarding individuals’ information rights. The ICO hopes to provide certainty to businesses wanting to invest in AI in the UK, which it states has the potential to add GBP47 billion to the UK economy each year, and noted its support for a statutory Code of Practice on AI.

The ICO also plans to make international data transfers quicker and easier by updating its guidance on international data transfers, consulting with regulators globally to build international agreement on mechanisms for trusted free flows of data, and working with the UK government to review adequacy assessments for key trading partners.

The response also confirmed that the ICO will support the government’s rollout of AI across the public sector and will continue to work with the government in areas such as data sharing. The ICO expressed support for legislation to simplify information-sharing between the UK’s different digital regulators, as well as removing consent requirements under the Privacy and Electronic Communications Regulations that it believes are preventing the uptake of more privacy-friendly forms of online advertising (such as contextual models).

The ICO additionally stated that it will publish and refresh its guidance on areas including neurotech, cloud computing and Internet of Things devices, and will launch a Data Essentials training and assurance programme for small and medium-sized enterprises during 2025/26.

The press release is available here, and the letter from the Information Commissioner is available here.