DISD and confused: The Smart Data Bill is on the cards, but what about AI?

by | 21 Aug 2024 | Blog

J Cromack

The Labour Government has been in power for a month and a half now, and they’ve quite quickly made some changes and decisions – good or bad, I’m saying nothing! But when it comes to data protection, AI and digital regulations (the bits I’m passionate about) not much has changed… yet. I’m feeling quietly hopeful though.

Guess who’s back, back again

The Smart Data Bill, aka the DPDI Bill, is back. And what a relief that is for everyone who was championing it previously. It got caught up in pre-election parliamentary business and didn’t get a chance to be passed. But thankfully, Keir and his gang have seen fit to bring it forward again, this time with a slightly altered name – the DISD (Digital Information and Smart Data) Bill, with a subtly different nuance. The precursor sounds very similar to the Data: A New Direction consultation back in 2021 under the previous government – the difference being the Conservative Government were positioning it as a Brexit dividend, and the Labour Government are positioning it to support growth.

We don’t yet know if anything in the previous DPDI version will be substantially changed. But, given that the whole point of this new Bill is to “harness the power of data for economic growth, to support a modern digital government, and to improve people’s lives”, I think it’s likely the best parts of DPDI will remain – with some improvements, made with the benefit of hindsight and time.

Key areas of interest are:

Digital Verification Services

If you’re sick and tired of having to put your personal details in time and time again then you’ll appreciate the move to create secure digital identity products. These products/services would be supplied by certified providers, with the aim of simplifying the identity checks involved in everyday activities. This will also hopefully encourage people and businesses to use identity-checking services in markets beyond retail banking, where it’s currently used for credit checks and account management.

Data protection

The government has already confirmed the new Bill will introduce targeted reforms to some data laws – we don’t know which yet – in order to maintain high standards of data protection and to increase clarity in this area. This is with a view to promoting the safe development and deployment of new tech. Based on all the work already gone into the previous DPDI Bill, let’s hope this doesn’t go back to the drawing board – but I think that’s unlikely!

Smart Data Schemes

I think it’s safe to say this will be included in the DISD Bill. A legal framework for ‘Smart Data’ would enable customer data (consumer or business) to be shared securely with authorised third-party providers at the customer’s request. Open Banking is a great example of how this could work – you’re able to share your data with authorised third parties, like financial management apps, to help you save or just manage all your accounts in one place. The aim of this proposal is to empower customers when it comes to their data and to allow businesses to improve their handling, and sharing, of customer data, which will drive exciting opportunities and hopefully lots of innovation in health, loyalty and financial services to name a few. Putting the spotlight on Smart Data is really exciting for me, having been a founding member of MyData Global and a cofounder of MyLife Digital (now part of DataGuard) where we had the ambition to rebalance the control of personal data between organisations and the citizens they serve. I’ll be closely watching (and hopefully influencing) developments in the Smart Data space.

Building up the Information Commissioner’s Office

The plan is to give the ICO new, stronger, powers restructuring it to create a “more modern regulatory structure” with a CEO, board and chair. Within the old DPDI Bill, there was a controversial proposal which would see the Secretary of State’s involvement in appointing members of the board. I’m not sure how I feel about that. If that part of the Bill does remain, I don’t know how the government will approach maintaining the independence of the ICO. 

Public services

In the DPDI Bill there was a proposal to facilitate the disclosure of information to improve public service delivery. Apparently, Labour intends to update the Digital Economy Act so the Government can share data about businesses that use public services. For example, moving to an electronic system for the registration of births and deaths and implementing standards for IT suppliers in the health and social care systems. I wouldn’t be surprised if this made its way into the new Bill.

It’s looking good, but is it good enough?

I thought the now defunct DPDI Bill was positive, and I’m confident the new one will be too. What changes we see within it remain to be seen. I understand it might be a bit daunting for some organisations, as undoubtedly there will be a lot of regulatory changes following the passing of the new Bill. But it won’t happen overnight and there will always be companies that can help advise you (Hello!).

I do have a little niggle, however, when it comes to AI. We all know that AI is, and will continue to be, revolutionary. And I suspect that it may not be being given the focus it needs. There was some speculation that the government would bring in new legislation to enable the regulation of AI models. The King’s Speech said the government, “will seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models”.  Which sounds positive… But so far there doesn’t seem to be any plans for AI-specific legislation. I expect it has been put into the too-hard-to-do box. With the EU leading the way in regulating AI, we need to incorporate a robust legal framework rapidly so businesses can have the confidence to invest in new products and services and be sure they remain on the right side of the regs.  When it comes to regulations like these, I’ve always said, “If it feels creepy, it probably is!”

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