Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Saturday 13 December 2025 6:00 am  |  Updated:  Friday 12 December 2025 4:50 pm

US sets AI standard, leaving Britain on the back foot

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
The decision to elevate cyberflashing within the Online Safety Act reflects growing pressure on both government and industry to address online sexual offences.
The White House delivered exactly what tech giants hoped for

When Donald Trump sat down in the Oval Office this week to sign off on a national AI framework, he delivered a global message. The US has committed to one standardised, federally regulated set of rules for AI.

The executive order sweeps away the threat of 50 different state-level approaches to regulating AI – a scenario Silicon Valley has long warned would turn compliance into a cross-country scavenger hunt.

“You can’t expect a company to get 50 approvals every time they want to do something”, Trump said. And needless to say, tech firms did not object.

With AI investors David Sacks and Chamath Palihapitiya looking on, the White House delivered precisely what they and other industry giants like Google, OpenAI and Meta have been lobbying for: a unified framework to keep innovation moving at pace and pre-empt California’s habit of writing tougher regulations than everyone else.

Alongside the order comes an ‘AI litigation task force’, a threat to challenge state laws, and a nudge that federal broadband funding may depend on cooperation.

The UK’s slower stance

The UK, on the other hand, continues to sketch its approach in pencil.

For over two years, Britain has promoted a “pro-innovation, principles-based” model, encouraging regulators to apply broad values to AI, without passing new laws.

Ministers have argued that this would keep Britain nimble, able to adapt as AI evolves.

Read more

True Launches the True AI Capability Index℠ to Redefine Executive Assessment

But what began as flexibility has increasingly taken on the form of hesitation. While the US now has one national playbook and the EU has a full AI act, the UK’s patchwork of consultations and action plans, whilst valuable, hardly forms a rulebook.

Recent developments of the AI action plan, proposals for AI growth labs to test new tech, and an expanded remit for the AI safety (now security) institute, are all useful building blocks, but none amount to the strict structure that has just been implemented over the pond.

Business leaders and parliamentarians have called for greater clarity on the most powerful frontier systems, worried that these agreements are not keeping pace with rapidly advancing technology.

The concerns are not abstract. From deepfake fraud to AI-generated therapy advice, regulators are already dealing with problems caused by emerging tools, that are changing day by day.

And there is a geopolitical angle, too. The EU writes statutory law, the US now enforces one standard, and China continues to legislate aggressively.

A choice the UK can’t outsource

Some of Britain’s hesitation reflects a genuine dilemma: binding legislation written too early risks stifling innovation, but written too late can erode public trust.

No government wants to fossilise a sector expected to add billions to the economy. Ministers have insisted that existing laws already catch many harms, and so far, they are right.

But British PLC increasingly wants clearer principles and predictability. And, they want to know whether the UK’s approach will remain compatible with international partners, especially now that the US has decisively picked its path.

Read more

The EU has regulated itself out of the AI race but the UK is still in the game

Keir Starmer and Ursula von der Leyen in discussion at a political summit meeting, emphasizing UK-EU relations.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • AI regulation
  • Donald Trump
  • Google
  • meta
  • national AI standard
  • OpenAI
  • silicon valley
  • tech regulation
  • UK regulation
  • US regulation

Trending Articles

  • Revealed: Secret Treasury plan to tax State Pension before it is paid out

  • Burnham’s new chief of staff ran City firm advising Thames Water and rival Heathrow bidder

  • Two solicitors linked to Post Office scandal charged with misconduct

  • Barclays and Lloyds join banking sector plan for digital ID

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

More from City PM

  • True Launches the True AI Capability Index℠ to Redefine Executive Assessment

    Business Wire
  • The EU has regulated itself out of the AI race but the UK is still in the game

    AI
    Keir Starmer and Ursula von der Leyen in discussion at a political summit meeting, emphasizing UK-EU relations.
  • Trump ban on AI access to foreign users forces Anthropic to suspend models

    Tech
    Donald Trump has threatened to sue the BBC for $1bn
  • City law firm Shoosmiths invests extra £1m in firm’s bonus pot

    Legal
    Business professionals in formal attire engaged in a lively discussion at a corporate meeting in a modern office setting.
  • Trump to reject UK plea over Anthropic ban as AI ‘kill switch’ fears grow

    Tech
    Getty Images logo on a modern office building exterior, symbolizing global influence in media and stock photography industry
  • Vercel Brings New Agent Framework, Full-Stack Capabilities, and Enterprise Controls to Its Agentic Infrastructure Platform

    Business Wire
  • Cloudflare Launches Design Partner Designation to Accelerate Secure AI and Seamless SASE Adoption

    Business Wire
  • Controlling the sprawl of shadow AI

    Partner
    UK initiative to manage AI expansion, showcasing technology control measures in urban settings

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM. All rights reserved.
About · Contact · Terms · Privacy