Why UK Government Must Urgently Refocus AI Regulation for the Second Wave

Why the Government Must Urgently Shift Focus to the Next AI Wave

The UK Government’s current approach to AI regulation risks falling behind. The focus remains stuck on legacy problems like past training data and outdated grievances. Meanwhile, the second wave of generative AI is already here, bringing new challenges that demand fresh conversations with the right experts.

If the Government continues with consultations centered on historical issues, it will miss the chance to craft legislation that supports an open, innovative AI economy—one where content creators receive fair compensation from the tech giants profiting from their work.

The Future of Artificial Intelligence

The first phase of AI adoption was experimental—organisations testing technologies and evaluating their potential impact. Now, we are entering a phase where AI becomes embedded in business operations, automating complex tasks and adding clear value.

This new stage will be defined by Agentic AI: systems that act autonomously, make decisions, and solve problems without constant human input. Powered by Large Language Models (LLMs), these agents will reason, seek information, and pursue goals by interacting with their environment and adapting based on feedback.

These AI agents will fundamentally disrupt existing value chains across publishing, advertising, e-commerce, and more. They will change how people access information and services—personal assistants, not search engines, will become the primary interface. Traditional publishing and commerce models will be completely transformed.

Regulating based solely on training data overlooks these seismic shifts and leaves the UK unprepared for the effects of this second AI wave.

Moving AI Legislation Beyond the Past

To create effective AI laws, the Government must engage with those shaping the future of AI, not just early adopters who have already benefited financially. Failure to do so risks repeating the mistakes made during the rise of social media, where tech giants set the rules to prioritise their own profits over public interest.

We need policy that clearly draws the line forward. Instead of chasing organisations over past data scraping, legislation should require a share of revenue generated from monetised AI outputs to be returned to creators. The technology to support this—watermarking, traceability, AI-native digital rights management—already exists.

However, political will and clear laws to enforce fair payment for creators are currently missing.

Ensuring AI Benefits Everyone

Revenue-sharing models have already proven effective on platforms like YouTube and TikTok. Applying similar frameworks to AI-generated content can help guarantee a universal basic income for creators in an AI-driven future. The urgency is real: this future is imminent, not decades away.

Legislation to implement fair compensation must be established now. The Government must also ensure it listens to voices that understand the second wave’s impact and how generative AI will evolve over the next decade.

Sticking to outdated conversations focused on data scraping and past issues will make it impossible to develop meaningful legislation within the limited timeframe available. Without engaging the right experts, consultations risk becoming mere formalities that fail to deliver real protections or benefits for creators.

When facing an incoming wave, you look ahead—not behind. It’s sink or swim time. The Government must quickly refocus to build fairness into the AI economy before it’s too late.

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