Data Protection and Privacy 2025

UK Trends and Developments Contributed by: Janine Regan and Victor Mound, Charles Russell Speechlys

The ICO discussed some methods for assess - ing whether a fee is appropriate such as rev - enue, costs and consumer valuation of the core service. However, the ICO ultimately indicated that the most appropriate measure is the value associated by people with using a product or service without sharing their personal informa - tion, which is context-dependent and would vary on the user base, user income level and type of information processed. While Pay or Okay mechanisms are more fre - quently associated with online news outlets and online streaming services, where users must purchase a subscription or premium member - ship to refuse personalised ads, most loyalty schemes also operate on a similar basis. For example, at most supermarkets, consumers receive discounts on products in exchange for their personal data. The ICO’s implementation of its guidance may lead to serious evaluation of how these schemes are structured and priced. Technology on the Horizon In February 2024, the ICO published its second annual Tech Horizons Report (see here ), which comments on eight priority technologies that the ICO believes may have a particularly significant impact on societies, economies and information rights in the next two to seven years. These tech -

While the Report is not formal guidance, it is very interesting as it highlights the ICO’s current thinking on emerging technologies and where it perceives the key data protection risks as being. Artificial Intelligence Not a month went by in 2024 without new reg - ulatory guidance on AI development and use. 2025 will be no different. On 13 January 2025, Prime Minister Keir Starmer set out the govern - ment’s blueprint for turbocharging AI develop - ment in the coming decade. In its 2025 Action Plan, the government said that one of its core principles is to be “on the side of innovators”, which suggests that no UK ver - sion of the EU AI Act is on the horizon. A nota - ble point in the Action Plan is that all regulators (including the ICO) will have to publish how they have enabled AI innovation and growth. Should regulators fall short, the government stated that it might make more “radical changes” such as empowering a central body with a “higher risk tolerance” and “statutory powers” to fast-track AI developments through pilot sandbox licences that override sector regulations. This is likely to be welcomed by many businesses who may now be more comfortable with increasing their invest - ment in developing and deploying AI systems in the UK. From an ICO perspective, in February 2024, the ICO outlined its strategic approach to regu - lating AI products and services that fall within scope of the UK’s Data Protection Act and the Online Safety Act. The ICO marked the simi - larities between data protection principles and the principles set out in the previous govern - ment’s AI regulation White Paper, and went on to explain how AI principles can be applied in a data protection context. The ICO stressed that

nologies are: • genomics; • immersive virtual worlds; • neurotechnologies; • quantum computing; • commercial use of drones; • personalised AI; • next generation search; and • central bank digital currencies.

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