Cross-regulatory innovation support for AI – DRCF updates

On 10 October 2025, the DRCF published insights from its year-long AI & Digital Hub pilot, a multi-agency advice service delivered by the CMA, ICO, Ofcom and FCA.  Launched in April 2024, the DRCF AI and Digital Hub provided free, tailored informal advice to innovators on complex, cross-regulatory issues.

The Hub received 30 applications, provided full responses to 9 organisations and partial assistance to 11, and published 8 anonymised case studies. 

Those case studies were:

1. Data protection and consumer law for businesses supporting SMEs to deploy AI
2. Managing the impact of third party software defects on resilience
3. Advertising financial promotions
4. AI and Online Forums: Navigating Data Protection, Online Safety, and Consumer Law in Health Discussion Forums
5. Perimeter guidance and data considerations for AI-enabled compliance tool
6. Ensuring Highly Effective Age Assurance on a User-to-User Service
7. Data portability requests by data intermediaries
8. Regulatory considerations for building AI-powered accessible digital services

According to the DRCF's report on the pilot:

• Innovators reported improved understanding of compliance, greater confidence, cost and time savings, and strategic shifts towards the UK market; advice was informal and non-binding.
• For regulators, the pilot strengthened cross-regulatory collaboration, built capacity and prompted cultural change, underpinned by a director-level project board and a cross-agency project group. 

The DRCF signalled an intention to build on the pilot, exploring a next phase with more tailored support and tangible benefits such as cost savings for innovators.

To quality for the AI and Digital hub, a query must be:

• Use AI or digital technologies
• Be innovative – a new, novel, or adapted approach
• Offer public or societal benefit – for consumers, businesses, or the UK economy
• Span at least two DRCF regulators.

Speaking about the AI and Digital Hub, the DRCF's CEO noted:

One lesson stands out: regulation isn’t a roadblock – it’s a roadmap. The Hub served as a bridge between innovation and regulation, showing that compliance can save you time, attract investment, and build trust. 

For instance, one innovator noted that our informal advice clarified regulations, speeding up their investment process, while another commented that the informal advice received had increased the attractiveness of the UK, leading them to increase their resource allocation to developing this market. 

One applicant said: “Having gone through this process, you almost gained a competitive edge… because you know you’re in line with the regulatory landscape.”

In addition to the AI hub, on 10 October 2025, the DRCF launched a Thematic Innovation Hub to provide tailored engagement and cross‑regulatory advice to innovators, with the first theme focusing on agentic AI. 

If you would like to discuss how current or future regulations impact what you do with AI, please contact Tom Whittaker, Brian Wong, Lucy Pegler, Martin Cook, Liz Griffiths, Kerry Berchem, or any other member in our Technology team.