The UK wants to do its ‘own thing’ on AI regulation, suggesting a divergence from U.S. and EU
Jaque Silva | Nurphoto | Getty Images
LONDON — The U.K. says it wants to do its “own thing” when it comes to regulating artificial intelligence, hinting at a possible divergence from approaches taken by its main Western peers.
“It’s really important that we as the U.K. do our own thing when it comes to regulation,” Feryal Clark, Britain’s minister for AI and digital government, told CNBC in an interview that aired Tuesday.
She added the government already has a “good relationship” with AI companies like OpenAI and Google DeepMind, which have voluntarily opened their models up to the government for safety testing purposes.
“It’s really important that we bake in that safety right at the beginning when models are being developed … and that’s why we’ll be working with the sector on any safety measures that come forward,” Clark added.
Her comments echoed remarks from Prime Minister Keir Starmer on Monday that Britain has “freedom now in relation to the regulation to do it in a way that we think is best for the U.K.” after Brexit.
“You’ve got different models around the world, you’ve got the EU approach and the U.S. approach – but we have the ability to choose the one that we think is in our best interest and we intend to do so,” Starmer said in response to a reporter’s question after announcing a 50-point plan to make the U.K. a global leader in AI.
Divergence from the U.S., EU
So far, Britain has refrained from introducing formal laws to regulate AI, instead deferring to individual regulatory bodies to enforce existing rules on businesses when it comes to the development and use of AI.
This is different from the EU, which has introduced comprehensive, pan-European legislation aimed at harmonizing rules for the technology across the bloc taking a risk-based approach to regulation.
The U.S., meanwhile, lacks any AI regulation whatsoever at a federal level and has instead adopted a patchwork of regulatory frameworks at the state and local level.
During Starmer’s election campaign last year, the Labour Party committed in its manifesto to introducing regulation focusing on so-called “frontier” AI models — referring to large language models like OpenAI’s GPT.
However, so far, the U.K. is yet to confirm details on proposed AI safety legislation, instead saying it will consult with the industry before proposing formal rules.
“We will be working with the sector to develop that and bring that forward in line with what we said in our manifesto,” Clark told CNBC.
Chris Mooney, partner and head of commercial at London-based law firm Marriott Harrison, told CNBC that the U.K. is taking a “wait and see” approach to AI regulation even as the EU is forging ahead with its AI Act.
“While the U.K. government says it has taken a ‘pro-innovation’ approach to AI regulation, our experience of working with clients is that they find the current position uncertain and, therefore, unsatisfactory,” Mooney told CNBC via email.
One area Starmer’s government has spoken up on reforming rules for AI has been around copyright.
Late last year, the U.K. opened a consultation reviewing the country’s copyright framework to assess possible exceptions to existing rules for AI developers using artists and media publishers’ works to train their models.
Businesses left uncertain
Sachin Dev Duggal, CEO of London-headquartered AI startup Builder.ai, told CNBC that, although the government’s AI action plan “shows ambition,” proceeding without clear rules is “borderline reckless.”
“We’ve already missed crucial regulatory windows twice — first with cloud computing and then with social media,” Duggal said. “We cannot afford to make the same mistake with AI, where the stakes are exponentially higher.”
“The U.K.’s data is our crown jewel; it should be leveraged to build sovereign AI capabilities and create British success stories, not simply fuel overseas algorithms that we can’t effectively regulate or control,” he added.
Details of Labour’s plans for AI legislation were initially expected to appear in King Charles III’s speech opening U.K. Parliament last year.
However, the government only committed to establishing “appropriate legislation” on the most powerful AI models.
“The U.K. government needs to provide clarity here,” John Buyers, international head of AI at law firm Osborne Clarke, told CNBC, adding he’s learned from sources that a consultation for formal AI safety laws is “waiting to be released.”
“By issuing consultations and plans on a piecemeal basis, the U.K. has missed the opportunity to provide a holistic view of where its AI economy is heading,” he said, adding that failure to disclose details of new AI safety laws would lead to investor uncertainty.
Still, some figures in the U.K. tech scene think that a more relaxed, flexible approach to regulating AI may be the right one.
“From recent discussions with the government, it is clear that considerable efforts are underway on AI safeguards,” Russ Shaw, founder of advocacy group Tech London Advocates, told CNBC.
He added that the U.K is well positioned to adopt a “third way” on AI safety and regulation — “sector-specific” regulations that rules to different industries like financial services and health care.
ChatGPT for Teachers
Courtesy of OpenAI
OpenAI on Wednesday announced ChatGPT for Teachers, a version of its artificial intelligence chatbot that is designed for K-12 educators and school districts.
Educators can use ChatGPT for Teachers to securely work with student information, get personalized teaching support and collaborate with colleagues within their district, OpenAI said. There are also administrative controls that district leaders can use to determine how ChatGPT for Teachers will work within their communities.
OpenAI said it is initially launching ChatGPT for Teachers with a cohort of districts that represent roughly 150,000 educators. ChatGPT for Teachers will be free to K-12 educators in the U.S. through June 2027, the company said.
“Our objective here is to make sure that teachers have access to AI tools as well as a teacher-focused experience so they can truly guide AI use,” Leah Belsky, vice president of education at OpenAI, told reporters during a briefing.
The company said student data will be protected and that anything shared within ChatGPT for Teachers will not be used to train its models.
OpenAI rocketed into the mainstream following the launch of its generic ChatGPT chatbot in 2022. It’s faced criticism from teachers and parents who argue that students can use the tool to cheat and avoid engaging in critical thinking.
ChatGPT for Teachers is not intended for students, but OpenAI said giving teachers hands-on experience with AI tools will help them understand and establish best practices in their classrooms.
“Every student today is growing up with AI, and teachers play a central role in helping them learn how to use these tools responsibly and effectively,” the company said in a blog post. “To support that work, educators need space to explore AI for themselves.”
In July, OpenAI released a product within ChatGPT called “study mode.” Study mode was built with college-age students in mind, and it aims to help them work through problems step-by-step before they arrive at an answer.
OpenAI said it built study mode as “a first step in a longer journey to improve learning in ChatGPT.”
WATCH: Investors believe OpenAI will become the largest hyperscaler: The Futurum Group CEO Daniel Newman
Block said Wednesday that it expects gross profit to increase in the mid-teens annually for the next three years, reaching about $15.8 billion in 2028.
At the payment company’s first investor day event since 2022, Block unveiled a three-year financial outlook. The announcements land as Wall Street has turned skeptical on Block’s prospects, pushing the stock down by more than 30% in 2025, while major indexes have notched solid gains.
Block shares were initially halted around the time of the announcement and then jumped 9% when trading resumed.
The fresh guidance also comes two weeks after Block reported quarterly results, missing revenue estimates for a sixth straight time. Block has been diversifying away from its point-of-sale business, which has become increasingly crowded, launching more services tied to Cash App and offering artificial intelligence tools to sellers.
Block said in its new outlook that adjusted operating income is projected to increase about 30% annually, topping $4.6 billion by 2028. Adjusted earnings per share will grow in the low 30% range, reaching $5.50 in three years.
Chief Financial Officer Amrita Ahuja told CNBC ahead of the release that the company is entering a new phase of execution.
Block vs. Nasdaq this year
“Since 2022, our last investor day, we’re nearly double the size from a gross profit perspective,” Ahuja said, adding that earnings before interest, taxes, depreciation and amortization “more than tripled.”
Block also introduced a new non-GAAP cash flow metric, designed to reflect the capital required to grow its lending products, which it expects to reach more than $4 billion, or 25% of gross profit, by 2028.
For 2026, Block expects gross profit to rise 17% to $11.98 billion, with adjusted operating income and EPS both increasing more than 30%, to $2.7 billion and $3.20, respectively.
Ahuja said Block has adopted a “rule of 40” investment framework. That typically refers to revenue growth rate plus profit margin exceeding 40. She said the company expects to reach that metric this year and has reorganized around a single roadmap with a shared technical infrastructure.
“That transformation has resulted in us moving faster, with more connected decisions across our ecosystem,” Ahuja said.
On Wednesday, Block also expanded its share repurchase program by $5 billion, adding to the $1.1 billion in remaining authorization as of Sept. 30. The prior buyback plan was for up to $4 billion in purchases.
Block CEO Jack Dorsey, who co-founded the company as Square in 2009, was in attendance at the investor event. Dorsey has largely been out of public view in recent years.
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