New AI Regulation: What UK Businesses Need to Know

The European Union’s General-Purpose AI Code of Practice has now come into effect, marking a significant milestone in the regulation of artificial intelligence across Europe. One year on from the introduction of the EU AI Act, this Code of Practice sets the first global standard for General-Purpose AI (GPAI) systems.

For UK businesses developing or deploying AI, the implications are clear: even those outside the EU must carefully assess whether their operations fall within the scope of these new requirements.

Excello Law’s role in shaping the Code – New AI Regulation

Wayne Cleghorn, AI and data partner at Excello Law, was directly involved in drafting the Code. Reflecting on the process, Wayne explained:

“The work to produce the Code of Practice was a world first. It was intensive, technical, and fast-paced.”

He describes the framework as a foundational starting point for AI governance, one that is expected to evolve alongside the technology itself.

Why compliance matters for UK businesses

Although adherence to the Code is voluntary, businesses choosing to align with it may benefit from simplified enforcement procedures under the EU AI Act. Wayne emphasises that UK organisations are not immune to its reach:

“The reach of the EU AI Act is not limited to EU-based businesses. UK companies developing or deploying AI systems aimed at the EU market will need to ensure compliance.”

With major deadlines approaching, the practical effects of enforcement are fast becoming a reality. By August 2025, each EU member state must designate regulatory authorities and establish national penalty frameworks.

Wayne highlights the importance of this stage:

“This phase will reveal the real-world scale of the EU’s AI regulatory framework.”

Preparing for the future of AI regulation

The Code is accompanied by detailed guidance and documentation tools to help organisations understand their obligations. For businesses, the message is clear: early preparation is essential.

Wayne advises companies across the UK, EU, US and beyond to:

  • Build multidisciplinary teams to manage compliance;
  • Seek specialist legal advice to navigate complex AI regulation;
  • Adopt a proactive strategy to adapt to evolving requirements.

As Wayne concludes:

“This is a landmark moment in the regulation of AI.”

Find out more

You can read the original article in the Solicitors Journal here.

How Excello Law can help

At Excello Law, Wayne Cleghorn advises clients on AI compliance, data governance, and regulatory risk management. If your business is developing, deploying, or procuring AI systems, now is the time to assess your obligations under the EU AI Act and related frameworks.

Get in touch with our team today to discuss how we can help you prepare for this rapidly changing regulatory landscape.