The Bytesize Briefing with Atticus Partners - July

Welcome to the Atticus Partners technology newsletter: the Bytesize Briefing!??

Each month we cover politics and policy from across the UK and European technology sectors.??

In this edition, we explore what a Labour government has planned for the tech sector, AI’s influence on the upcoming general election, next steps on the EU’s draft CSAM regulation, the DMA’s role regulating AI partnerships with Big Tech, and delays to Meta’s AI training plans.??

Plus, see the latest general election updates in our Election Section – consisting of special coverage on what is happening in the tech sector as the UK approaches the General Election on the 4th July 2024!??

For more information about Atticus’ work in the technology sector, or questions about the support you require, please get in touch via [email protected].????

The Election Section

The UK’s election campaign was awash with tech policy discussions in June, as the leading parties – Labour, Conservative, Liberal Democrats and Green – all included reference to supporting tech, data, and AI in their manifestos. Read our full manifesto analysis here. ?

Aside from manifesto commitments, technology’s role as a campaign tool has been in the spotlight, with analysis from Revealing Reality suggesting voters are divided by age group when it comes to how they consume their political news – with older respondents to the survey listening to the radio or watching TV, whilst younger groups pick up most of their news from social media. ?

This analysis is further validated by a Techne poll, which states 21% of 18–34-year-olds have been using TikTok and Instagram as their main source of information during the election campaign – although Twitter and Facebook are used by just 4% of young people.??

Research also reveals voters are less likely to share political opinions or engage in conversation online, compared to previous election cycles, feeling the tone of social media has become more “toxic”. ?

1. Peter Kyle signals Labour’s plan for the sector at London Tech Week?

In an unexpected appearance before technology industry figures at London Tech Week, Shadow DSIT Secretary Peter Kyle decided to provide a sneak preview of what a future Labour Government would do to facilitate the construction of critical infrastructure, such as data centres, in the UK to boost economic growth. He also outlined plans to remove planning system barriers and reform procurement processes, making it easier for UK start-ups to bid for government contracts, along with other plans to create a national data library to centralise government research, enhancing access for scientists and academics.?

These initiatives are part of Labour's broader strategy to compete with tech hubs like Silicon Valley and position the UK as a leader in new technologies like AI. On this subject, Kyle said that Labour plans to tighten AI regulations, maintain the AI Safety Institute on a statutory basis and legislate mandatory safety data release for frontier AI labs. ?

Despite these signals from Kyle on Labour’s tech policy they are, like all of the party’s announced commitments, relatively light on details, and so there will still be a significant amount of uncertainty around future plans, when Labour inevitably forms the next government.?

2. AI candidate runs for Parliament in 2024 election?

Whilst Labour may be announcing their future plans for AI if they were to enter government, an independent candidate for Parliament is pushing the electoral envelope for the new technology by running for Parliament as an AI candidate. Steve Endacott, a Sussex businessman, is running in the Brighton Pavillion seat with the assistance of an AI model named “AI Steve”. The technologically advanced candidate engages with voters through voice and text interactions, gathering their views and influencing Endacott's policies based on this feedback.?

If Endacott were to win his election, the Electoral Commission has confirmed that he would serve as the MP for the seat, not the AI. The constituents of Brighton Pavillion did not seem amused with the introduction of this new technology into their election, with one commenting that both AI and politicians “can’t be trusted”.?

3. Big Tech–AI collaboration puts DMA front and centre?

The Digital Markets Act (DMA) was back in the spotlight, following OpenAI and Apple announcing plans to integrate the AI platform’s language model into the tech giant’s products later this year. With Apple being designated a core platform service under the DMA by the European Commission – along with other Big Tech platforms, such as Amazon, Meta and Microsoft – it now has to comply with specific criteria to enable competition in digital markets and “leave room for contestability”. ?

Although some of these partnerships may not fall within the DMA, leaving space for Big Tech to dominate the market without limit, the European Commission indicated its recognition of the issue, saying the DMA and its processes are “quite flexible”. This will be welcome news for industry voices, who will inevitably have concerns about OpenAI and Apple’s partnership, especially following the AI platform already being highly scrutinised for its recent collaboration with Microsoft. ?

4. Data protection authorities welcome delay in Meta’s AI training plans??

In June, Meta announced it was pausing plans to use Facebook and Instagram users’ data to train AI large language models (LLMs) following concerns raised by the Irish Data Protection Commission (DPC). It is reported that extensive campaigning from privacy groups, such as NOYB, was an important contributor to the DPC’s decision to ask Meta to delay its training.?

The DPC welcomed Meta’s announcement, referring to the high level of engagement between the two parties which it has committed to continue going forward. The UK’s Information Commissioner’s Office (ICO) made a similar request as it also asked Meta to pause its current plans. Meta said it will be able to use this time to address specific requests from the ICO which was also well received.??

These developments reflect increasing concerns about data privacy in relation to AI which regulators and companies will continue to grapple with. However, Meta will continue to develop its AI models on user data outside the UK and the EU, with individuals in the United States unable to opt out of these practices. The different convergence and divergence between various regulators in their approaches to AI is an increasingly interesting development as this becomes a progressively prominent issue.??

5. EU ambassadors fail to reach consensus on draft CSAM regulation?

The EU’s draft Child Sexual Abuse Material (CSAM) regulation faced another challenge in June, as ambassadors representing the bloc’s 27 member states were unable to reach a consensus on the data privacy aspect of the file. Although ambassadors had been expected to jointly back a position on the draft regulation, the vote was cancelled at the eleventh-hour following intel that many EU countries, such as Germany, Poland and the Czech Republic, would likely abstain from the vote or oppose it, citing cybersecurity concerns about the draft’s inclusion of “upload monitoring” technology.??

The technology – which would compel encrypted messaging services such as WhatsApp and Signal to integrate scanning technology into their systems to monitor photos, videos and URLs – has been widely criticised by messaging giants, civil society and digital rights groups, in addition to lawmakers across the European Parliament, arguing it poses a significant threat to the EU’s democratic freedoms and privacy. It will be worth keeping an eye on the file as it develops, as Hungary began its term as President of the Council of the European Union on the 1st July, and so will be expected to progress talks on the legislation.?

Look ahead...

The UK’s tech agenda is expected to swiftly change following the general election – and an expected new government – on the 4th July. See below the dates to look out for over the coming weeks:?

• General election – Thursday 4th July?

• Appointment of ministers – w/c 8th July ?

• State Opening of Parliament (King’s Speech) – Wednesday 17th July ?

• Parliament is prorogued for Summer Recess – Tuesday 23rd July (TBC)?

In addition to participating in these key dates, the new government will be looking to establish itself on the world stage, notably hosting the European Political Community (EPC) summit on the 18th July. The EPC aims to ensure all European states are committed to “European values”, including around cybersecurity policy. With the new government wanting to make its mark, this summit will be a pivotal event to watch for insights into what to expect on future tech policy.?

Events

To find out about how Atticus helps tech companies to navigate the changing regulatory and legislative landscape, get in touch with our team at [email protected] to learn more about what we can do for you.