CASE STUDY: Data protection and consumer law for businesses supporting SMEs to deploy AI
Business A is a B2B service that helps SMEs harness the power of AI by connecting them with foundation models. The query to the Hub sought clarification on Business A’s role in the supply chain, particularly when engaging with foundation model suppliers outside the UK. The response from the ICO and CMA highlights key requirements related to controllership, international transfers, transparency, and Business A’s responsibilities to SMEs and consumers.
CASE STUDY: Advertising financial promotions
Business C operates an AI powered compliance platform to automate the analysis and review of marketing content. The query to the hub sought clarification on ensuring consistent compliance standards when the same financial promotion is distributed through both digital channels (under FCA regulation) and broadcast media (under Ofcom regulation) and the expectations from both regulators on the use of AI for compliance decision-making. The response from FCA and Ofcom highlights key requirements related to advertising and financial promotions within Ofcom’s and the FCA’s respective remits, how the rules intersect and how the regulators take into account the use of AI when considering compliance.
CASE STUDY: Perimeter guidance and data considerations for AI-enabled compliance tool
Business E is a B2B service that enables financial advisors to be more efficient in fulfilling their compliance obligations. The query sought clarification on whether their software product requires FCA authorisation, including the type, timing, and application process. They also requested guidance on complying with data protection law. The response from the FCA and ICO provides information on perimeter guidance, details on how to get authorised, and key data protection considerations.