UK’s Digital Regulation Co-operation Forum announces new AI and Digital Hub Pilot

The question

What is the AI and Digital Hub and how can AI innovators use it? 

The key takeaway

The Digital Regulation Co-operation Forum (DRCF) has launched the AI and Digital Hub pilot (the Hub) to support AI innovation. The Hub will provide a streamlined process for innovators to seek advice and ask questions that fall within the remit of at least two of the DRCF regulators. The pilot of the Hub will run for one year, following which its future use will be assessed. 

The background

The DRCF was formed in July 2020 and is made up of four regulators: the Competition and Markets Authority (the CMA); the Financial Conduct Authority (the FCA); the Information Commissioner’s Office (the ICO); and the Office of Communications (Ofcom). In September 2023, the DRCF announced its plans to launch the AI and Digital Hub pilot with the aim to support AI innovators.

The development

On 22 April 2024, the DRCF announced the launch of the AI and Digital Hub pilot. 

What does the Hub provide?

The Hub seeks to provide a single source of free informal advice about complex regulatory questions which fall under the remit of more than one of the following regulators: the CMA, the FCA, the ICO and Ofcom. This aims to improve support to innovators and streamline the process of seeking advice from the regulators. With the appropriate respect for commercial sensitivity, the DRCF will publish the queries and responses brought to the Hub as case studies so that these can be used as reference points for others. 

Who is eligible to apply to the Hub?

To put a question forward to the Hub an innovator must be developing a new product, service or business model. According to the DRCF, the question must meet the below criteria:

• it has an AI and/or digital focus
• it falls within the remit of at least two DRCF member regulators
• it is innovative
• it will benefit consumers, businesses and/or the UK economy.

The DRCF notes that it will adopt a broad interpretation of “innovative” in order “to capture both radical and incremental advances to products, services or business models”. The DRCF will also consider working with other regulators depending on the nature of the queries received. 

How long with the Pilot run?

The pilot is due to run for one year following which a decision will be made in 2025 as to its future use.

Why is this important?

The Hub is important to innovators as a source of indicative regulatory advice to give them some confidence that their product or solution is being developed in compliance with applicable law. Rather than regulators simply relying on enforcement powers (such as fines) after the fact, this cooperative approach is intended to spot early warning signs of non-compliance and promote responsible innovation.

Any practical tips?

Any AI innovators with questions for the regulators should make use of the Hub whilst it is in its pilot phase and provide feedback. Those developing AI and digital products should also refer to the case studies which will likely provide useful guidance. 

Summer 2024