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BUILDINGTHEFOUNDATIONS

FORTRUSTEDARTIFICIALINTELLIGENCEResponsetotheUKgovernmentwhitepaper,

Apro-innovationapproachtoAIregulationAbout

ACCAACCA

(the

Association

of

Chartered

Certified

Accountants)

is

the

globalprofessionalbodyforprofessionalaccountants.We’re

a

thriving

global

community

of

241,000

members

and

542,000

futuremembers

based

in

178

countries

and

regions,

who

work

across

a

wide

range

ofsectorsandindustries.We

upholdthehighestprofessionalandethicalvalues.We

offer

everyone

everywhere

the

opportunity

to

experience

a

rewardingcareerinaccountancy,financeandmanagement.Ourqualificationsandlearningopportunities

develop

strategic

business

leaders,

forward-thinking

professionalswith

the

financial,

business

and

digital

expertise

essential

for

the

creation

ofsustainableorganisationsandflourishingsocieties.Since

1904,

being

a

force

for

public

good

has

been

embedded

in

our

purpose.InDecember2020,wemadecommitmentstotheUNSustainableDevelopmentGoals

which

we

aremeasuring

and

will

report

on

in

our

annual

integrated

report.We

believethataccountancyisacornerstoneprofessionofsocietyandisvitalinhelping

economies,

organisations

and

individuals

to

grow

and

prosper.

It

doesthis

by

creating

robust

trusted

financial

and

business

management,

combatingcorruption,

ensuring

organisations

are

managed

ethically,

driving

sustainability,andprovidingrewardingcareeropportunities.Throughourcutting-edgeresearch,weleadtheprofessionbyansweringtoday’squestionsandpreparingforthefuture.We’re

anot-for-profitorganisation.Find

out

more

at

AboutEYEY

exists

to

build

a

better

working

world,

helping

to

create

long-termvalue

for

clients,

people

and

society

and

build

trust

in

the

capital

markets.Enabled

by

data

and

technology,

diverse

EY

teams

in

over

150

countries

providetrustthroughassuranceandhelpclientsgrow,

transformandoperate.Working

across

assurance,

consulting,

law,

strategy,

tax

and

transactions,

EYteams

ask

better

questions

to

find

new

answers

for

the

complex

issues

facingourworldtoday.EY

refers

to

the

global

organization,

and

may

refer

to

one

or

more,

of

the

memberfirms

of

Ernst

&

Young

Global

Limited,

each

of

which

is

a

separate

legal

entity.Ernst

&

Young

Global

Limited,

a

UK

company

limited

by

guarantee,

does

notprovide

services

to

clients.

Information

about

how

EY

collects

and

uses

personaldata

and

a

description

of

the

rights

individuals

have

under

data

protectionlegislation

are

available

via

/privacy.

EY

member

firms

do

not

practice

lawwhereprohibitedbylocallaws.For

more

information

about

our

organization,please

visit

This

news

release

has

been

issued

by

EYGM

Limited,

a

member

of

the

global

EYorganizationthatalsodoesnotprovideanyservicestoclients.?2023AssociationofCharteredCertifiedAccountantsandEYGlobalServicesLimited.July2023TheviewsreflectedinthisarticlearetheviewsoftheauthoranddonotnecessarilyreflecttheviewsoftheglobalEYorganizationoritsmemberfirms.Thispublicationcontainsinformationinsummaryformandisthereforeintendedforgeneralguidanceonly.Itisnotintendedtobeasubstitutefordetailedresearchortheexerciseofprofessionaljudgment.MemberfirmsoftheglobalEYorganizationcannotacceptresponsibilityforlosstoanypersonrelyingonthisarticle.BUILDINGTHEFOUNDATIONS

FORTRUSTEDARTIFICIALINTELLIGENCERESPONSETOTHE

UK

GOVERNMENT

WHITEPAPER,A

PRO-INNOVATION

APPROACH

TO

AI

REGULATIONInMarch2023,theUKgovernment’sDepartmentforScience,Technology

&InnovationpublishedawhitepaperentitledAPro-innovationApproachtoAIRegulation.Thewhitepapersetsoutthegovernment’sstrategyforsupportinginnovation,whileprovidingaframeworktoensurethattherisksassociatedwithAIareidentified,addressedandmitigated.Thispaper,

fromACCAandEY,

isaresponsetothatwhitepaper.

Ouraimistoprovidepolicymakerswithaconstructivecritiqueofthewhitepaper,

informedbyourpositionswithintheaccountancyandbusinessecosystem,andtheaccesstofeedbackandinputswehaveacrossourstakeholderbases.For

furtherinformation:NarayananVaidyanathan,HeadofPolicyDevelopment,ACCADr.

AnsgarKoene,GlobalAIEthicsandRegulatoryLeader,

EYForewordsNot

a

day

goes

by

without

AI

being

in

the

news,

and

it

features

strongly

in

the

publicconsciousnessduetoitspotentialtointroduce

bothnew

opportunitiesandpreviouslyunseen

risks.The

release

of

the

UK

government’s

AI

whitepaper

has

provideda

timelyopportunity

to

take

stock.As

this

paper

notes,

we’re

supportive

of

the

overall

pro-innovation

approach,

and

the

importanceof

multi-stakeholder

feedback,

such

as

capturing

the

voice

of

SMEs

and

the

UK

regionsoutside

London.

We

also

support

the

desire

to

build

bridges

internationally,

which

alignsstrongly

with

ACCA’s

own

global

approach.

We

strongly

endorse

the

explicit

reference

to

the

roleofauditandassuranceandrelatedtoolsasakeypartofthesolutiontoensureanAIecosystemthatisunderpinnedbyethicalpractices.A

flexible

approach

to

manage

the

fast

pace

of

new

development

can

help

the

current

waveof

generative

AI,

for

example,

has

exploded

quite

recently.

However,

further,

more

prescriptiveguidancemaybeneededtoestablishclarityonwhereaccountabilitieslieinsomeinstances.HelenBrandOBEChiefexecutive,ACCAOverall,

we

see

this

as

the

start

of

a

multi-year

process

and

look

forward

to

collaborating

withandsupportingUKgovernmentinthisimportantendeavourinanywaywecan.Thegovernment’sAIwhitepaperlaysoutaproportionateand‘pro-innovation’approachto

AI

regulation.

A

British

strength

in

regulatory

frameworks

has

been

a

bias

towardsthe

use

of

industry

or

community

‘standards

markets’,where

industry

standards

andassurance

processes

provide

‘a(chǎn)ccredited

conformity

assessment’.

Standards

marketsbased

on

proportionate

and

pro-innovation

business

ecosystems

ranging

from

safegas

boiler

supplies

to

fire

prevention,

aircraft

certification,or

shipping

safety.Standards

markets

should

provide

accreditation

and

certification

such

that

people

can

placeappropriate

reliability

on

the

assessed

products

and

services.

This

paper

notes

the

opportunityto

use

such

standards,

particularly

existing

ISO

standards,

for

inspection

and

testing

to

provideappropriate

assurance

on

AI

products

and

services.

This

combination

of

minimal

regulationwith

maximal

use

of

standards

markets

can

provide

a

middle

path

between

two

extremes:a

completely

unregulated

approach

leaving

a

tangle

of

confusion

to

the

legal

system

and

anoverlyregulatedapproachwherenothingcanmoveuntilpermissionisgranted.ProfessorMichaelMainelliFCCA,Chairman,Z/Yen

Group,SeniorIndependentDirector,UnitedKingdom,AccreditationThose

of

us

with

decades

of

experience

in

the

fields

of

AI

have

long

recognised

the

needService,SeniorAldermanBelow

for

standards.

These

ISO

standards

have

not

just

‘popped

out

of

the

woodwork’

due

totheAldermanicChair,

Cityof

recent

media

attention;

rather

they

have

been

the

result

of

years

of

concerted

work

to

reachLondonCorporation,andHead

internationalagreements.ThispapercontendsthatitisnowappropriatetopushfirmlytowardsoftheEthicalAIInitiativetheiruseinaccreditedUKconformityassessment.DrivenbyacceleratingdevelopmentandadoptionofAI-enabledsolutions,policymakersacross

the

globe

are

confronting

the

challenges

of

formulating

a

regulatory

approachto

this

rapidly

advancing

technology

that

will

mitigate

the

potential

harms

of

AI

whilesimultaneously

enabling

its

social

and

economic

benefits.The

AI

governance

landscape

is

evolving

rapidly

and

is

likely

to

continue

to

be

in

flux

forseveralyearstocome.Withinthiscontext,theUKgovernment’s

AIwhitepaperhasproposeda‘pro-innovation’

approach

that

focuses

on

the

role

of

existing

regulatory

bodies

in

developinganAIregulatoryframeworkunderpinnedbyprinciplesofresponsibledevelopmentanduse.Regulatory

approaches

to

AI

if

they

are

to

be

effective

must

operate

in

a

global

marketand

be

comparable

across

jurisdictions

in

order

to

ensure

rules

that

mitigate

risk

and

allow

forresponsible

innovation

and

use.

The

UK’s

alignment

of

its

AI

regulatory

principles

with

thoseof

the

OECD

and

G20

is

an

encouraging

sign

that

it

is

committed

to

be

a

leader

in

efforts

todevelop

sensible

rules

for

AI’s

progress.Wesupport

this

role

and

urge

other

nations

to

continuetoworktogethertodeveloprulesthatareeffectiveonaglobalaswellaslocalbasis.ShawnMaherEYGlobalViceChair–Publicpolicy4Contents1.

Executivesummary6892.

Recommendationsforpolicymakers3.

Introduction4.

ResponsetoUKgovernmentwhitepaperAIregulatorydevelopmentsintheUK13131314151617WhatdoestheUKgovernmentwhitepaperpropose?GeneralreactionstothewhitepaperSpecificreactionstothewhitepaperTools

fortrustworthyAIandethicaluseExistingcodesandstandardsrelevanttoprofessionalaccountants5.

Conclusion2021222324AcknowledgementsPastpapersfromACCAPastpapersfromEYReferences5BUILDINGTHEFOUNDATIONSFORTRUSTEDARTIFICIALINTELLIGENCE

|

EXECUTIVESUMMARYExecutivesummary1.

The

UK

government

whitepaper,

A

Pro-innovationApproach

toAIRegulation,hasbeen

longawaitedandits

publicationiswelcome.It

adoptsa

flexible,common-sense

approach

tothe

regulation

ofartificial

intelligence(AI)

andalignswith

other

principlessuchasthe

values-basedAI

principles

propounded

bythe

Organisation

forEconomic

Co-operationandDevelopment(OECD).paper.

Accordingly,thepaperexploresafewoftheseexistingcodesandstandardsinthecontextofAI-relevantconsiderations.7.

Thereare,however,

otheraspectsworthnotingtoensurethattheambitionsofthewhitepaperarerealisedasintended.Somekeyconsiderationsfromourperspectiveareasfollows:2.

GiventhepaceofchangeandnewscenariosthrownupbyAI,thewhitepaper’s

approachappearswellsuitedto‘unknown-unknown’AIrisks.TheapproachoflearningthroughwatchingandwaitingrecognisesthatAIischangingfastandthatsomerisksmaybebetterassessedanddefinedasthetechnologyevolves.AtACCAandEY,

wearesupportiveofregulatingoutcomesratherthanthetechnologyitself.Thisalignswiththeprinciples-basedapproachtoa.

Thegovernmentwillnotputitscross-cuttingprinciplesonastatutoryfootinginitiallybuthasleftthedooropenforplacingastatutorydutyonregulatorslater.

SotherecouldbeaconsiderabledelayindecidingbetweenAI-specificmandatoryrequirementslinkedtoimplementingthewhitepaperprinciples,ononehand,andrelyingonself-regulationorsuggestedguidanceontheother.Organisationsvalueregulatorycertainty.Along,uncertainwaitingperiodrisksdelaystoupskillingandpreparationforfuturecompliance,particularlyamongsmall-andmedium-sizedentities(SMEs),whichwillbelesslikelytocommitcostoreffortwithoutcertainty.regulationfortheaccountancyprofessionintheUK.13.

We

agreewiththewhitepaper’s

desiretobuildontheUK’s

thrivingAIecosystemandwelcometheUKgovernment’scommitment

to

international

cooperation–somethingwe’dbekeentosupportwherepossible.b.

Issuesofaccountability,ethicsandtrustrequirecarefulconsideration,particularlyintheabsenceofadesignatedentityresponsibleforAIoversight.Thecurrentapproachmaywellbeworkable,butstakeholderswouldbenefitfromadditionalsupporttohelpthemnavigatethedifferentbodiesrelevanttotheirAIcomplianceobligations.SomeareaspertinenttoAI(suchasdataprotection)haveextensivepre-existingregulationandguidance,whileothers(suchasexplicabilityofAIsystems)arelessmature.Also,considerationisneededforfoundationalmodelssuchaslargelanguage4.

We

arehighlysupportiveoftherolethatthewhitepaperdescribesforeffectiveoversighttools,andthatofauditandassurance,forsupportingthelong-termsustainabledevelopmentoftheAIecosystem.Webelievethattheaccountancyprofessionhasakeyroletoplayindrivingtrustin,andtheethicaldeploymentof,AI.5.

We

welcomethewhitepaper’s

specificemphasisonconsideringtheroleofAIacrossallregionsandnationsoftheUK.Nearlytwo-thirdsoftheUK’s

AIindustryecosystemisbasedinLondon(BusinessWire2021).WhilethisconcentrationishelpingtomakeLondontheAIcapitalofEuropeandmustbesupported,ACCAandEYoperateacrosstheregionsandnationsoftheUK,andweseethepotentialforAItodriveeconomicopportunityinsupportoflevelling-upacrosstheUK.models(LLMs)

thatdonotneatlyfallintotheremit2ofanyoneexistingregulator.c.

Theconceptofcentralsupportfunctionscouldbeeffectiveandinnovative,butthewhitepaperwouldbenefitfromfurtherdetailonhowthesewillbeimplementedinpractice:howtheywillberesourced,themechanismthroughwhichtheywillgatherinputsfrommarketparticipants,andhowtheywillbecoordinatedacrosssectorregulators.6.

Effectivelyengagingwithexistingcodesandstandardsspecifictoindividualsectorsanddomains–includingtheirevolutionandfuturedirection–isfundamentaltotheapproachproposedbythewhite12Calltoaction#10inACCA’s

reportonRiskCulture</gb/en/professional-insights/risk/risk-culture.html>,notesthat“Furthercooperationbetweenourprofessionsandregulatorswillbebeneficialforall”,whichisbasedonthe‘Frameworkformeaningfulengagement’</publications/framework-meaningful-engagement-human-rights-impact-assessments-ai>.Amachinelearningmodelthatusesnaturallanguageprocessing(NLP).6BUILDINGTHEFOUNDATIONSFORTRUSTEDARTIFICIALINTELLIGENCE

|

EXECUTIVESUMMARYd.

Itwouldbegoodtounderstandifthereisanythinkingwithingovernmentontheneedformoreprescriptiverequirementsthatbuildonthewhitepaperprinciples.Someregimesare,ofcourse,takingamoreprescriptiveapproach.Thisdoesn’tnecessarilymakethatthepreferredchoice,buttherisktoconsideristhatUKorganisationsoperatingacrossboundarieswilldefaulttothemostprescriptiveregimeacrosstheirregionsofactivity–foroperationaleaseandtoreduceriskofnon-compliance.TheconsiderationhereisthatthismightinadvertentlymakeUKorganisationsrule-takersofotherregimes.Thereisabalancetoconsiderinrelationtomaintainingapro-innovationapproach–forexample,thismaymeanmoreprescriptiverequirementsfortheriskiestusecasesratherthanacrosstheboard.maytendincreasinglyandirreversiblytopullawayfromthepack.Considerationisneededtoavoidcreatingmonopoliesandstiflingtheveryinnovationthatissought.Itisalsoimportanttobesensitivetoblindspotsininnovation,becausetrulydisruptive–asopposedtoincremental–changeoftencomesfromSMEsandAIinnovationisripeforexactlythistypeoftransformativechange.g.

Leadersacrossbusiness,fromboardleveldownwards,areattheearlystagesofclarifyingwhereaccountability,contestabilityandredresswouldresideinrelationtoAIsystems.Itwouldbehelpful,possiblyviathecentralsupportfunctions,toprovideaforumforsharingexamplesofhowthiscanbedone.Suchaforumcouldhelpdefinetheroleandlegalliabilityofnotjustofboardmembers,andC-suite,butalsolendersandinvestors.e.

As

thewhitepapertakesacontext-specificapproachtoregulation,existingsectorregulatorswillneedtoprovidetheirownguidanceontheuseofAI.Whileitisgoodtolearnfromthosewithgreaterexpertise,itwouldbehelpfultohaveanexplanationofhowtheproposedapproachwouldsupportless-maturesectorsastheyupskillonAI.h.

Itwouldbehelpfulforfurtherpolicyworktosetoutthegovernment’sviewoftheenvironmentalimpactofAI,forexample,itsmeasurement,monitoring,ormitigationofharm.ThisisparticularlyneededasfoundationalAIandgenerativemodelsdriveever-highercomplexity,dataandenergyconsumption.Therearealsosocialconsiderations,particularlyinrelationtotheoften-mentionedareaofjobsdisplacement,whichareimportantfortheresponsibledeploymentofAI.f.

Thereisahugedifferencebetweenthecapabilities,resourcesandrequirementsofthelargetechnologycompaniesandthoseofSMEs.Thewhitepaper’s

approachofcarryingonwithinexistingregulatoryambits,needscaretoavoid–despitebestintentions–entrenchingpowerimbalances.Thoseholdingcustomerchannels,accesstotrainingdataandresearchbudgets8.

Overall,wewelcomethiswhitepaperaspartofadialoguethroughwhichtheUKAIregulatoryregimecanbecontinuallyrefinedandpositionedasprogressive,innovativeandresponsible.AT

ACCAANDE

Y,

WEARESUPPORTIVEOFREGULATING

OUTCOMESRATHER

THANTHETECHNOLOGYITSELF.

THISALIGNSWITHTHEPRINCIPLES-BASEDAPPROACHTOREGULATIONFORTHEACCOUNTANCY

PROFESSIONINTHEUK.7BUILDINGTHEFOUNDATIONSFORTRUSTEDARTIFICIALINTELLIGENCE

|

RECOMMENDATIONSFORPOLICYMAKERSRecommendations

forpolicymakers9.

Actfastonthedetail.

AIisrapidlydeveloping;itisthesubjectofintensemediainterestandisprominentinthepublicconsciousness.ConversationsonAIregulationareconstantlyevolving,withregimesaroundtheworldworkingfasttostaketheirplaceinthedebate.Whetheroneisregulatingtoomuchortoolittle–prioritisingconsumerprotectionandunrestrictedinnovation–isanimportantissuebutdelayingisjustasdamagingasgettingthiswrong.Businessdislikesregulatoryuncertaintyanditiscriticalthatthedetailsarefleshedoutassoonaspossibletooperationalisethewhitepaper’s

approach.11.

Seekmulti-stakeholderfeedbackandinvolvement.AIusescitizens’data,directlyorindirectly,anditsoutputsaffectthesecitizens’lives.Itisimperativethatitsdevelopmentaltrajectoryisnotinformedbyanarrowinnercoterieofinfluencers.ThoseacrosstheregionsoftheUK,acrossthefullsocio-economicspectrum,acrosssectors/industriesandinSMEsaswellaslargerorganisations,needtobeinvolved.12.

ChampionanecosystemfortrustworthyAI.

Itisnecessarytocreate/reinforcepathwaysforsharingknowledge,toolsandexperience.Theaccountancyprofessionhasskillsforassessingrisksandcontrols,frequentlyfacessituationsrequiringethicaljudgementandseekstoupholdthepublicinterest.An10.

Aligninternationally,coordinatedomestically.ACCA’s

andEY’s

stakeholdersoperateinternationallyand,whiletheyacknowledgegeo-politicalfactors,theywouldwelcomeasmuchharmonisationaspossibleacrossregimestosupportinteroperability.Thisreducescosts,complexityandrisk.Atthesametime,itisvitaltoavoidthefatalflawofallowingmajorissuestofallintothegapsbetweentheaccountabilitiesofdifferentsectorregulators,ortheirduplicationofthesamepreparatorywork.environmentthatleveragesandproactivelyinvolvesthematureUKaccountancysector(egeducationandawarenessaspectsofthecentralsupportfunctions,partneringtosharekeymessagesinternationally)wouldbolsteritsglobalreputationasatrustedhomeforresponsibleAI.8BUILDINGTHEFOUNDATIONSFORTRUSTEDARTIFICIALINTELLIGENCE

|

INTRODUCTIONIntroduction13.

Overthecomingyears,AIwillcompletelytransformawiderangeofsectors,includingagriculture,17.

AwareofboththeopportunitiesandchallengesthatAIpresents,numerousjurisdictionsaroundtheworldareexploringthepossibilityofregulatingAI.OneofthesejurisdictionsistheUK,whichispositioningitselftobecomeagloballeaderintheregulationandgovernanceofAItechnologies.communication,education,healthcare,manufacturingandtransportation.Asaresult,itissettoboosttheglobaleconomy,witheconomistspredictingthatAIcouldeventuallyboostannualgrossdomesticproduct(GDP)by7%(BriggsandKodnani2023).18.

TheUK’s

ambitionsintheregulatoryspacearewell-founded,giventhatitisalreadytheAIcapitalofEuropeandarecognisedleaderinthedevelopmentandapplicationofAItechnologies.ThecountryranksthirdontheGlobalAIIndexproducedbyTortoiseMedia,behindtheUSandChina,measuredonitslevelofinvestment,innovation,andimplementationofAI(Tortoise

Media2021).Itisalsohometoaroundone-thirdofEurope’s

AIstart-ups(Kelnar2019).14.

AItechnologiescouldalsobringenormoussocialandenvironmentalbenefits,suchashelpingustocombatchildabuseandcybercrimeandprovidingcriticalinsightsthatcanbeusedtomitigateclimatechange.Yet

whileAIcanpotentiallybeatremendousforceforgood,italsopresentssomesignificantthreatstosociety.15.

Ifusedinappropriately,AIcouldexacerbateexistinginequalities,damagepublictrustthroughthespreadofmisinformation,andbeharmfultothephysicalandmentalhealthofindividuals.AItechnologiesthreatenjobsandlivelihoodsandareatriskofbeingexploitedbycyberattackers.AndwhileAIcanbeapowerfultoolinthefightagainstclimatechange,itsuseisitselfaconsiderablesourceofcarbonemissions.19.

InMarch2023,theUKgovernment’sDepartmentforScience,InnovationandTechnology(DSIT)publishedawhitepaperentitledAPro-innovationApproachtoAIRegulation.Thewhitepapersetsoutthegovernment’sstrategyforsupportinginnovation,whileprovidingaframeworktoensurethattherisksassociatedwithAIareidentified,addressedandmitigated.16.

Despiteitsfar-reachingimplicationsforsociety,AIispoorlyunderstoodbymostanditsuseremainslargelyunregulated.SuchisthelevelofconcernaboutthepotentiallydetrimentalimpactofAIonsocietythatover1,000technologyleadersandresearchershavecalledforapauseonAIdevelopment,citing‘profoundriskstosocietyandhumanity’(OpenDataScience2023).20.

Thispaper,

fromACCAandEY,

isaresponsetothatwhitepaper.

Ouraimistoprovidepolicymakerswithaconstructivecritiqueofthewhitepaper,

informedbyourpositionswithintheaccountancyandbusinessecosystem,andtheaccesstofeedbackandinputswehaveacrossourstakeholderbases.Whatis

AI?21.

Thereisnosingle,commonlyagreeddefinitionofAI.Nevertheless,AIisoftendescribedasthesimulationofhumanintelligencebycomputersystems,wherebyAIalgorithms,iesetsof22.

AIcanbebroadlycategorisedintonarrowAI(whereamodelistrainedtoperformasingletask,suchasrecognisingfacesortranslatingtextintoanotherlanguage)andgeneralAI(whereamodelistrainedtolearn,behaveandperformactionsinthesamewaythathumanswoulddo).Inbothcases,themodelsaretrainedusingdata.instructions,areprogrammedtomakedecisionsandsolveproblemsusinglargevolumesofstructured(egfiguresinrowsandcolumns)andunstructured(egtextual,vocal,image)data.9BUILDINGTHEFOUNDATIONSFORTRUSTEDARTIFICIALINTELLIGENCE

|

INTRODUCTIONFoundationmodelsBenefitsof

AI23.

So-called‘foundationmodels’areanemergingtypeofgeneral-purposeAI.Thesepowerfulmodelsaretrainedonbroaddatasets,oftentakendirectlyfromtheinternetratherthanusingcuratedtrainingdatasets,andwithminimalhumansupervision.Theyusemachinelearningtoapplywhattheyhavelearnedaboutonesituationtoanother.27.

AItechnologies–andfoundationmodels,inparticular–havethepotentialtobehugelybeneficialtoboththeeconomyandsociety.As

theUKprimeministerhassaid:‘HarnessingthepotentialofAIprovidesenormousopportunitiestogrowoureconomy,createbetter-paidjobs,andbuildabetterfuturethroughadvancesinhealthcareandsecurity’(UKGovernment2023).24.

LargeLanguageModels(LLMs)areaspecifictypeoffoundationmodelthataretrainedonlargeamountsoftextdata.LLMsarepoweringgenerativeAImodels,whichincludeChatGPTandGoogle’s

Bard.28.

Fromaneconomicperspective,AItechnologiescanboostefficiencyandproductivity(apriorityfortheUK),reduceoperationalcosts,andenableconsumerstoenjoyawiderchoiceofpersonalisedproducts.25.

The‘generativeAI’thatisenabledbyfoundationmodelscanproducenoveloutputsderivedfromthesimpleinputsthatitreceives.As

wellasgeneratingvastswathesoftextanddata,generativeAIcancreatecompleximagery,videosandmusic.Itcangeneratethiscontentfromashortprompt,ratherthanhavingtobetrainedspecificallytoperformthetaskinquestion.Thisisdifferentfrommachinelearningtechniques,suchasclassification,whichsimplymapnewinformationontoexistingcategoriesdependingonhowtheyweretrained.29.

AItechnologiescantakeoverdangerous,boringandrepetitivetasksfromhumans,freeinguppeopletoperformsaferandmoreinterestingwork.Theycanalsominimise,andpotentiallyeveneliminate,theri

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