DSIT launches consultation into how UK data regulations impact AI adoption

The Department for Science, Innovation and Technology (DSIT) has launched a consultation to examine how UK data regulation interacts with artificial intelligence and data-intensive technologies. This call for evidence seeks practical examples and insights into legal, technical, and governance arrangements to help determine whether guidance, targeted updates, or fundamental regulatory reform is needed.

The initiative supports government ambitions to make the UK the fastest-adopting AI economy in the G7. Data-driven companies already contribute 85 billion pounds in gross value added to the UK economy and employ 1.5 million people. However, rapidly evolving technologies present new risks and friction points under current frameworks, such as the UK General Data Protection Regulation (GDPR).

Evidence from an earlier AI Growth Lab consultation highlighted compliance challenges regarding lawful bases for large-scale data use, data minimisation, purpose limitation, data subject rights, and complex supply chain governance. Furthermore, emerging capabilities such as agentic AI, along with requirements for larger datasets, create tensions with existing rules. The government aims to evaluate whether these regulatory barriers, adoption challenges, or technical constraints exist, and to assess how privacy-enhancing technologies (PETs) and synthetic data can support responsible innovation, maintain public trust, and manage potential harms.

The consultation closes on 15 July 2026.

Training Announcement: Find out more about our range of independent accredited qualifications from BCS and IAPP. These include professional certifications for practitioners covering data protection and AI governance, information security and risk management, along with access to public information.