The intersection of technology and regulation
London Tech Week (LTW) brought together an extraordinary blend of voices from across the globe, from within Europe to Latin America and the Middle East, and all across the UK. There was a unified and excited focus on innovation, digital progress, and evolving and emerging technologies, all in the context of striking deals and seeking commercial partnerships.
LTW participants reflected on the broadening application of AI, the rise of human-centric health technologies and the role of trust in financial services. Echoing our own series of events covering innovation and regulation (read more about the discussions here), LTW explored why the UK's pro-technology regulatory statements make it an attractive place to do business. Meanwhile, the government used the week to make a series of announcements on technology funding and growth.
A global tech outlook with UK funding to match
The international presence at this year's conference underscored the borderless nature of today's innovation landscape. From Estonia's pioneering e-residency programme to the UK-Ukraine tech bridge supporting digital therapy services in conflict zones, governments are not just observers but active participants in enabling cross-border tech collaboration.
There was, understandably, also a focus on the UK which was praised for its constructive and engaged regulatory environment, particularly in areas like fintech. Consultative regulators give businesses confidence to test, scale, and refine new offerings. In particular, the FCA and NHS were identified as strong providers of sandbox schemes and accelerator programmes, ensuring young companies have the support needed to build, grow and succeed.
To coincide with LTW and underline the government's commitment to growth in this area, a number of funding announcements were made, some of them at the conference by the Prime Minister himself. These included:
- up to £750 million for a new supercomputer at the University of Edinburgh
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£1 billion to the Advanced Research and Invention Agency to fund breakthrough R&D
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£500 million to fund an R&D Missions Accelerator Programme
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£200 million to address skills shortages
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£10 billion to NHS technology and digital transformation over the next four years.
Specifically on AI, the government also announced £2 billion towards implementing the 50 recommendations made in the AI Opportunities Action Plan. £500 million will go to the Sovereign AI Unit whose work includes delivering AI Growth Zones. £1 billion will go towards the AI Research and Resource Programme which aims to build Britain's sovereign compute capacity for research and startups. £240 million goes to the AI Security Institute, and £48 million to the Tech Expert programme to help expand university education in AI.
AI as the new commodity
Soon AI will be where electricity was a century ago; not a cool and hardly-understood function, but a feature that is assumed to be present and used without hesitation. That sentiment resonated throughout the week, with speakers emphasising how AI can allow resources, including people, to focus on the tasks that matter.
We heard from innovators like Tortus AI, who are reimagining clinical workflows so that "doctors can doctor" rather than spend hours on data entry. This message really hit home for lawyers juggling billable hours with admin tasks. Other AI use cases introduced at LTW ranged from automating legal and medical intake processes to national defence applications, air traffic control, and efficiencies in public service delivery.
On the whole, there was a general view that AI is already boosting productivity and resilience, and those who fail to harness it risk falling behind. Encouragingly, the UK's regulatory stance is deliberately pro-innovation and the UK is keen to develop and maintain an AI competitive edge. The UK is opening its arms to AI, with examples such as a public sector-wide AI hackathon held at 10 Downing Street. There were also calls for broader national AI governance, with recognition that no single country can address every AI challenge alone.
Healthtech with a human heart
Perhaps the most inspiring stories came from the healthtech sector. Many founders shared deeply personal motivations: family illness, gaps in care, or inaccessible diagnostics. The innovations showcased offered hope for faster, fairer access to treatment. Healthtech companies with a focus on women's health are showing that diagnostic tampons and non-invasive treatment for endometriosis are not only possible, but are improving women's lives.
While the technology was impressive, common legal and regulatory challenges remain. Difficulty in accessing and utilising NHS data was a recurrent topic. Siloed systems, variable local engagement, and a lack of unified infrastructure continue to frustrate founders and investors. Legal and entity-wide frameworks will need to adapt quickly if we're to support the growing healthtech industry while safeguarding patient privacy and ethical standards.
Embedded finance and the consumer journey
A rapidly growing trend is the embedding of financial services directly into consumer journeys. Think "Buy Now, Pay Later" appearing seamlessly at checkout, or insurance quotes generated as part of a product purchase. As discussed at LTW, this model has to factor in benefits for the fintech, the retailer and the consumer for true success.
The benefits of retail and fintech partnerships are often rooted in trust. The fintech providing the embedded finance product can leverage the trust already established between the high-street retailer's brand and its customer base, and the retailer can test the waters with a financial services offering without incurring the cost of developing the infrastructure itself. Consumers are protected through regulation, although regulation needs to keep pace with the technology solutions available.
While some regulations have fallen behind, reform is on the horizon. The government is implementing greater protections for consumers particularly in consumer credit, including buy now pay later offerings (see more here). This is a timely reminder that regulation need not stifle innovation if it evolves in step with it.
A notable regulatory-driven success story is Open Banking (OB). UK banks were required to build APIs to enable third-party access to accounts and payments, to drive competition and innovative offerings.
Following on from the launch of OB, the next step is Pay by Bank (PBB). PBB allows real-time account-to-account payments as an alternative to card networks. While adoption is still growing, PBB has real promise for reducing card fees, improving resilience, and providing faster settlement. In the context of recent major retail cyber attacks, the advantages of alternative payment options are clear.
Regulation and innovation: not opposites
Similar to the conclusions at our recent event 'Does regulation kill innovation?', the consensus was that innovation and regulation are not inherently in conflict. Rather, they must evolve together. Regulation done well provides a foundation of trust, enables experimentation, and creates a level playing field for scaling ideas. Regulation can also ensure that innovations are deployed safely and ethically, ensuring that even in AI, the human experience remains central.
London Tech Week left us not just impressed but inspired. As technology becomes embedded in every aspect of our lives, the law must move just as dynamically. There's never been a more exciting time to be advising on global technology offerings.
