The Department for Digital, Culture, Media & Sport ('DCMS') released, on 6 July 2021, its policy paper on Digital Regulation: Driving Growth and Unlocking innovation, comprising of a new Plan for Digital Regulation. In particular, the policy paper aims to drive prosperity through pro-innovation regulation of digital technologies while minimising serious harms to the country's economy, security, and society. More specifically, the policy paper sets out three guiding principles for policymakers to follow, noting that the government should only regulate where absolutely necessary and proportionate. 

Regarding the UK data protection regime, the policy paper clarifies that the UK will continue to operate a high-quality regime that simultaneously fully supports the digital economy. In light of this, the policy paper highlights a debate around the use of artificial intelligence to automate parts of the financial advice process and states that the right governance or regulatory frameworks for the development and deployment of systems for automated decision-making will help to build trustworthiness and consumer confidence.

In order to embed the new approach to digital regulation, the policy paper proposes, among other things, actions for the government, regulators, and on an international level. For example, the policy paper explains that the DCMS will examine the case for any new mechanism so that policymakers factor in innovation-friendly measures when designing digital regulations and that it will work closely with regulators within the Digital Regulation Cooperation Forum, including the Competition and Markets Authority, Financial Conduct Authority, Information Commissioner's Office, and Ofcom.

You can read the press release here and the plan here.