Artificial Intelligence Law Services for Businesses

The UK government has adopted a pro-innovation approach to AI regulation, built around five cross-sector principles covering safety, transparency, fairness, accountability and contestability. Rather than creating a single AI regulator, the framework asks existing sector regulators to apply those principles within their own domains. This includes the Information Commissioner’s Office (ICO), the Financial Conduct Authority (FCA) and the Competition and Markets Authority (CMA), each applying the principles in their relevant sectors.

This creates flexibility but also complexity. Businesses selling into the European Union (EU) must also consider the EU AI Act, which introduces binding requirements based on risk classification and will affect UK companies with EU customers or operations. We help you map your regulatory exposure, assess your risk level, and build the governance documentation that demonstrates responsible AI use now and as requirements evolve.

Standard technology contracts are rarely adequate for AI-powered products and services. AI raises distinct questions around liability for errors and so-called “hallucinations,” ownership of AI-generated outputs, training data rights, audit obligations and performance standards that standard service level agreement (SLA) language does not cover well.

Whether you are procuring AI tools, embedding AI in your product, or licensing AI-generated outputs, we draft and negotiate agreements that reflect the real risks involved. We advise on SaaS agreements with embedded AI functionality, supplier contracts, AI-specific licence terms, application programming interface (API) agreements and terms of use for AI-powered platforms. If a dispute arises with an AI supplier or customer, our dispute resolution team can advise.

IP law did not anticipate AI-generated content, and the resulting uncertainty creates genuine commercial risk. Under current UK law, a work generated entirely by AI with no human author is unlikely to attract copyright protection in the same way as a human-created work. If your business relies on AI-generated content, code or design, you need to understand what you own and how to structure your processes to maximise protection.

Training data also raises significant IP issues. Using copyrighted material to train AI systems without appropriate licences may constitute infringement, and the UK’s legal position is actively developing. We advise on IP ownership clauses in AI contracts, strategies for protecting proprietary AI systems, trade mark protection for AI products and licensing arrangements for AI-generated outputs. For further detail, visit our intellectual property page.

Most AI systems process personal data, which means UK GDPR compliance is not optional. From identifying a lawful basis for processing training data to completing Data Protection Impact Assessments (DPIAs) for high-risk applications, the obligations are substantial.

Automated decision-making attracts particularly close scrutiny. Article 22 of the UK GDPR restricts decisions based solely on automated processing that have a legal or similarly significant effect on individuals. Businesses using AI in customer-facing decisions, credit assessments or content moderation need clear policies and, in some cases, human oversight mechanisms. Our data protection solicitors advise on lawful bases, DPIA requirements, privacy-by-design principles and processor agreements with AI vendors.

AI tools are increasingly used in recruitment, performance monitoring and workforce management. Alongside the efficiency gains, there are real legal risks that require careful management.

Using AI in recruitment raises discrimination risk. If an algorithm replicates historical hiring patterns or applies criteria that disadvantage protected groups, you may face claims under the Equality Act 2010. Transparency obligations also apply: candidates have rights to know when automated tools assess them. Employee monitoring using AI requires a lawful basis under UK GDPR, clear policies and proportionate implementation. Our employment lawyers work alongside our technology team to provide fully integrated advice.