Implementing AI: an introduction for businesses
Artificial Intelligence (AI) is no longer a distant prospect - it is rapidly reshaping the business landscape across the UK and beyond. For UK businesses, the imperative is clear: understand AI’s potential, navigate its unique risks and implement it responsibly to drive value while maintaining compliance. This article breaks down what you need to know in order to make informed decisions and position your business for success in the age of AI.
What is AI and how does it work?
AI refers to digital systems capable of performing tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. According to the OECD, AI systems infer from input data to generate outputs (predictions, recommendations, or decisions) that can influence both physical and virtual environments. These systems vary in autonomy and adaptability, but it’s crucial to recognise that AI does not “understand” in the human sense, nor does it possess logic, morals or an appreciation of time. Instead, it predicts and patterns based on vast datasets, making it powerful but not infallible.
How can AI transform your business?
AI offers a spectrum of opportunities for businesses, from enhancing decision-making to automating operations. The main benefits include:
- Efficiency: Automating routine tasks to free up human resources.
- Accuracy: Performing repetitive or monitoring tasks with fewer errors.
- Data Insights: Analysing vast datasets to uncover actionable insights.
Common corporate applications include speech-to-text for meeting minutes, document summarisation, automated CV screening and first-draft creation for business communications. Operationally, AI can drive predictive maintenance, workflow optimisation, energy management, quality control, safety monitoring and demand forecasting.
However, the key to success lies in identifying the right use cases. Like the internet before it, AI is a general-purpose tool and its value depends on how well it is matched to your sector, strategic objectives and operational challenges.
What are the risks?
AI introduces risks that differ significantly from traditional software. These include:
- Intellectual property (IP) ownership: Who owns AI-generated outputs? Were the training data and models properly licensed?
- Unexpected results and hallucinations: AI can produce inaccurate or misleading outputs, sometimes inventing facts.
- Black box effect: Lack of transparency in decision-making processes.
- Confidentiality: Potential exposure of sensitive data, especially if models are not securely contained within the organisation.
- Discrimination and bias: AI trained on biased data can perpetuate unfair outcomes.
- Deepfakes: Manipulated media that can harm reputations or facilitate fraud.
- Cyber risk: AI increases the digital attack surface and can be targeted by novel cyber threats.
- Energy consumption: AI systems are energy-intensive, posing challenges for organisations with decarbonisation goals.
Mitigating these risks requires a tailored approach for each use case. For example, marketing teams may focus on IP, HR on discrimination and customer-facing functions on reliability.
The rules: navigating regulations
UK regulation
The UK government has adopted a pro-innovation, principles-based approach, leveraging existing regulators and legislation. While there is no AI-specific law yet, all current UK laws apply, including GDPR, the Equality Act, consumer protection and copyright laws. The government’s five guiding principles are safety, security and robustness, transparency and explainability, fairness, accountability and governance, and contestability and redress. These aim to build public trust and ensure proportionate, context-specific regulation. New legislation is anticipated, aiming to prohibit harmful uses of AI while fostering innovation - a delicate balance for UK lawmakers.
European regulation
The EU is leading with the AI Act, which complements GDPR, the Digital Services Act, and the Digital Markets Act. The Act uses a risk-based model, categorising AI applications by potential harm and imposing strict legal obligations on developers and users. The AI Liability Directive and a proposed EU AI Board are also in development. For UK businesses operating in Europe, cross-jurisdictional compliance is essential.
Global perspective
Other jurisdictions, including the US, China, and Canada, are developing their own frameworks, often focusing on specific applications or ethical considerations. Multinational organisations must ensure compliance across all relevant territories.
Responsible AI: what are others doing?
Leading organisations are adopting “responsible AI” principles, including:
- Transparency and explainability: Disclosing AI use and providing information on how it works.
- Fairness and non-discrimination: Addressing bias and ensuring equality.
- Robustness, safety and security: Monitoring for unintended or malicious use.
- Accountability and governance: Establishing clear oversight and the ability to override AI decisions.
- Active risk management: Demonstrating ongoing consideration of risks and governance.
Many companies establish steering groups and policies to ensure their AI usage stands up to legal and ethical scrutiny. Governance is challenging because AI is multidisciplinary, requiring input from legal, cyber, data and operational stakeholders.
How to implement AI in your business
To implement AI compliantly and effectively, UK organisations should:
- Define use cases and performance criteria.
- Assign accountability for governance and usage.
- Provide AI literacy training at all levels.
- Develop a corporate AI policy.
- Conduct thorough risk assessments for each use case.
- Implement operational controls, such as AI inventories and human oversight.
AI brings both big opportunities and serious risks for UK businesses. With the rules evolving fast, now is the time to act. For expert, tailored advice on safe and effective AI adoption, get in touch with Gowling WLG’s AI team.
Author
Jocelyn Paulley, Partner at Gowling WLG
Jocelyn Paulley, Partner at Gowling WLG
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Kir Nuthi
Kir Nuthi
Kir Nuthi is the Head of AI and Data at techUK.
She holds over seven years of Government Affairs and Tech Policy experience in the US and UK. Kir previously headed up the regulatory portfolio at a UK advocacy group for tech startups and held various public affairs in US tech policy. All involved policy research and campaigns on competition, artificial intelligence, access to data, and pro-innovation regulation.
Kir has an MSc in International Public Policy from University College London and a BA in both Political Science (International Relations) and Economics from the University of California San Diego.
Outside of techUK, you are likely to find her attempting studies at art galleries, attempting an elusive headstand at yoga, mending and binding books, or chasing her dog Maya around South London's many parks.
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- [email protected]
Usman Ikhlaq
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.
Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign.
Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech.
Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
Sue Daley OBE
Sue Daley OBE
Sue leads techUK's Technology and Innovation work. This includes work programmes on AI, Cloud, Data, Quantum, Semiconductors, Digital ID and Digital ethics as well as emerging and transformative technologies and innovation policy. In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List. She has also been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the tech agenda in the UK, in December 2025 Sue was appointed to the UK Government’s Women in Tech Taskforce by the Technology Secretary of State. She also sits on the UK Government’s Smart Data Council, Satellite Applications Catapult Advisory Group, Bank of England’s AI Consortium and BSI’s Digital Strategic Advisory Group. Previously, Sue was a member of the Independent Future of Compute Review and co-chaired the National Data Strategy Forum. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries in 2020, Sue has been shortlisted for the Milton Keynes Women Leaders Awards and has been a judge for the Loebner Prize in AI, the UK Tech 50 and annual UK Cloud Awards. She is a regular industry speaker on issues including AI ethics, data protection and cyber security.
Prior to joining techUK in January 2015, Sue was responsible for Symantec's Government Relations in the UK and Ireland. Before that, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Master’s Degree in International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
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