UK firms are pulling ahead of EU competitors in the AI race – here's why

UK organizations are pulling ahead of EU competitors in implementing AI, new research suggests, and a key factor lies in their confidence about regulatory compliance.

Almost a quarter of UK CEOs told AI firm Daikatu they have a formal roadmap for AI implementation over the next year, double the global average and nearly five times as many as in Germany.

And while four-in-ten CEOs in France and a third in Germany said they'd cancelled an AI project due to regulatory uncertainty, only one-in-five UK CEOs said the same.

Florian Douetteau, CEO and co-founder of Dataiku, said the contrasting regulatory landscapes on both sides of the English Channel are enabling British firms to capitalize on the AI ‘boom’.

"The market research in our report suggests reduced regulatory uncertainty is giving UK businesses the clarity to act — accelerating innovation and adoption, even as AI evolves at a relentless pace," Douetteau said.

"Working with our enterprise customers, we have seen first-hand that when CEOs have confidence in compliance and control over governance, they can move faster, scale smarter, and fully capitalize on AI’s potential."

Hesitation over AI regulation is a global issue, the study noted, with eight-in-ten CEOs concerned that the EU AI Act could slow adoption in their organizations.

The Act brings with it a common regulatory and legal framework for AI, and is aimed at ensuring AI development and deployment in the EU is carried out responsibly.

However, there's been plenty of room for confusion and uncertainty, with the latest draft of the General-Purpose AI Code of Practice published only recently, and potentially set for more changes before it comes into force in May.

"The EU AI Act has raised more questions than it answered, and in the process has seen businesses within its jurisdiction become increasingly cautious with their AI programmes," said Jacob Beswick, senior director of AI governance at Dataiku and former UK assistant director for AI adoption and regulation.

"Heavier regulations in the EU mean there are more restrictions on what you can and cannot operationalize and put on the market than in the UK, in turn arguably making the UK an attractive market for AI innovators."

Firms still conscious of AI governance

CEOs acknowledged that while AI is a critical competitive differentiator, their organizations often lack the governance, planning, and oversight needed to carry projects out successfully.

While eight-in-ten CEOs globally said they were confident in their company’s AI governance framework, or their ability to set rules around data access and privacy, only a third of these described themselves as extremely confident.

Overall, more than a third of CEOs said their AI projects had been delayed due to regulatory uncertainty, with 32% having canceled or abandoned them altogether.

However, Beswick noted that while regulatory considerations may slow down AI implementation, those without stricter guidelines must ensure they are creating AI products “with risk awareness in mind, as opposed to simply doing so because they can”.

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