As a forward-thinking and tech-savvy business owner, I wanted to draw your attention to important upcoming legislation that will affect all UK businesses using artificial intelligence (AI), including popular tools like ChatGPT, Gemini and Claude.

Introducing the Artificial Intelligence (Registration and Accountability) Bill

The Government recently introduced the Artificial Intelligence (Registration and Accountability) Bill, establishing the new Office of the Artificial Intelligence Commissioner (OAIC). This legislation follows extensive consultation aimed at increasing transparency and accountability in AI use, responding to growing concerns from industry experts about unregulated AI practices.

The Journey So Far

The Bill’s journey was accelerated due to the heightened debate around the ethical use of AI, intellectual property concerns, and international data protection standards. Industry leaders have highlighted the importance of transparency around AI data scraping practices, echoing calls for businesses to demonstrate clearly responsible AI usage.

Minister for Business Regulation, Alex Thompson, stated: “This legislation is a significant step forward in ensuring that the UK’s business community harnesses AI responsibly, transparently, and ethically, positioning the UK as a global leader in digital accountability.”

However, some organisations have expressed concern. The Free Speech Society warned: “This Bill sets a worrying precedent for excessive monitoring and could undermine businesses’ freedom to innovate without undue governmental interference.”

International Considerations

From an international perspective, experts have raised questions about the potential impact on the UK’s data adequacy status with the EU. While the Government assures minimal risk, businesses operating internationally should remain vigilant as further amendments and EU reactions unfold.

Parliamentary Debate and Amendments

Significant debate has occurred in Parliament, notably concerning how businesses should log and report AI usage. Amendments introduced in the House of Lords proposed stricter controls, though the final requirements remain under discussion in the Commons.

What Does This Mean for Your Business?

From 1 July 2025, all businesses using Generative AI must:

• Register annually with the OAIC, with fees based on turnover:
  • Up to £100k: £75
  • £100k–£500k: £150
  • Above £500k: £350
• Maintain detailed monthly logs recording:
  • Total hours spent using AI tools
  • Platforms used (e.g., ChatGPT, Gemini, Claude)
  • Purpose of use (Business Admin, Client Services, Marketing & Sales, Other)
• Submit quarterly AI usage reports via the OAIC online portal. Late or incomplete filings will attract penalties of up to £500.

The Government has also indicated potential random compliance audits to ensure accurate reporting.

Recommended Immediate Actions:

• Begin logging AI usage from today
• Budget for registration fees due by 1 July 2025
• Consider appointing an internal “AI Compliance Officer”

Further information can be found at gov.uk/AIcompliance2025.

Please reach out if you’d like guidance on navigating this new compliance framework—we’re here to help!

This email was sent on 1 April 2025.