AI: Regulation Will Emerge Say Experts, as Innovation and Skills Drive Growth
21st November, 2024
The North East’s tech sector is in rude health, with a surge in job creation, economic growth and skill-building, fuelled by the integration of artificial intelligence (AI) across industries. But organisations eager to benefit from advances in AI technology should look ahead to anticipate an evolving regulatory regime, says Matt Cormack, Commercial Partner.
Opencast Software, one of the region’s leading tech consultancies who ranked third on this year’s list of the region’s fastest growing businesses in the Ward Hadaway North East Fastest 50 Awards, has witnessed the demand for AI capabilities growing exponentially over the past year.
“We’re seeing a big increase in demand from our clients for data scientists, data analysts and machine learning professionals, particularly with generative AI experience,” said Gordon Murray, Head of Architecture at Opencast. “As public and private sectors increasingly seek expertise in AI, this demand is creating new avenues for skilled professionals across the region. New roles such as machine learning engineers are now being incorporated into frameworks like the government’s digital and technology capability framework, highlighting the changing job landscape. This has also underlined the criticality of innovation, experimentation and training at Opencast, with AI literacy now a core requirement for every consultant.”
This demand isn’t about filling current roles but, rather, reflects a broader transformation within companies looking to harness AI for improved efficiency and personalisation.
Gordon continues: “A year ago, AI was primarily about experimentation and prototypes. Nearly every new opportunity now highlights a need to utilise AI in some way. The range of AI-enabled demand we see covers everything from hyper-personalisation and virtual assistants to predictive analytics and pattern detection.”
Matt Cormack, Commercial Partner at Ward Hadaway.
It is a landscape Ward Hadaway is very familiar with. The UK Top 100 law firm works with a range of tech companies across the North of England, supporting their growth and helping them navigate complex legal and regulatory landscapes. Their comprehensive legal and business support allows companies to focus on innovation and growth while staying compliant with current and emerging standards.
Matt Cormack, Commercial Partner at Ward Hadaway who leads their North East Tech, Digital and Media Group, explains: “A large number of our tech clients are developing AI-based products and services to meet market demands across various sectors. Whilst we are seeing widespread innovation and testing of AI solutions across our client base at the moment, we are also seeing a number of businesses remaining cautious of direct-to-consumer AI outputs, instead placing an emphasis on a continued need for human intervention and monitoring to complement AI technology.
“In terms of skills and jobs, this cautious approach likely means that traditional roles will evolve rather than disappear, creating new positions that combine human and AI-driven insights. Skills development, therefore, becomes paramount both within supplier and customer roles.”
While the growth of AI holds promising economic prospects, businesses are currently navigating a complex legal environment that currently lacks AI-specific regulation.
“The current challenge for businesses is how to develop solutions at pace without any certainty on the future regulatory landscape, a position which will shift in the near future,” adds Matt. “Existing laws around data protection, intellectual property and confidentiality already impact AI’s creation and deployment, and a key part of our advisory role at Ward Hadaway is to help guide clients around the design and implementation of AI solutions within this fragmented regulatory framework. We also help our clients to keep a keen eye on the changing regulatory mood music in the UK and worldwide.
“Of course these technologies offer huge opportunities which can help businesses achieve real competitive advantages. But where there is reward, there is also risk that needs to be reviewed, managed and mitigated. For example, who is responsible if an AI healthcare diagnostic gets the wrong result, or a generative engine creates something which is discriminatory? It is a fascinating area of law to be involved in right now.”
As North East businesses in the tech sector and beyond use AI to drive innovation, educational institutions, training providers, consultants and legal advisers like Ward Hadaway play a crucial role in shaping a tech ecosystem that is resilient, compliant and future-ready.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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