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Response to the UK government white paper,A pro-innovation approach to AI regulation About ACCA ACCA (the Association of Chartered Certified Accountants) is the globalprofessional body for professional accountants. We’re a thriving global community of241,000members and542,000futuremembers based in178countries and regions, who work across a wide range ofsectors and industries. We uphold the highest professional and ethical values. Weoffer everyone everywhere the opportunity to experience a rewardingcareer in accountancy, finance and management. Our qualifications and learningopportunities develop strategic business leaders, forward-thinking professionalswith the financial, business and digital expertise essential for the creation ofsustainable organisations and flourishing societies. Since 1904, being a force for public good has been embedded inour purpose.In December 2020, we made commitments to theUN Sustainable DevelopmentGoalswhich we are measuring and will report on in our annual integrated report. We believe that accountancy is a cornerstone profession of society and is vital inhelping economies, organisations and individuals to grow and prosper. It doesthis by creating robust trusted financial and business management, combatingcorruption, ensuring organisations are managed ethically, driving sustainability,and providing rewarding career opportunities. Through our cutting-edge research, we lead the profession by answering today’squestions and preparing for the future. We’re a not-for-profit organisation. Find out more atwww.accaglobal.com About EY EY exists to build a better working world, helping to create long-termvalue for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over150countries providetrust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EYteams ask better questions to find new answers for the complex issues facingour world today. EY refers to the global organization, and may refer to one or more, of the memberfirms of Ernst & Young Global Limited, each of which is a separate legal entity.Ernst & Young Global Limited, a UK company limited by guarantee, does notprovide services to clients. Information about how EY collects and uses personaldata and a description of the rights individuals have under data protectionlegislation are available via ey.com/privacy. EY member firms do not practice lawwhere prohibited by local laws. For more information about our organization,please visitey.com This news release has been issued by EYGM Limited, a member of the global EYorganization that also does not provide any services to clients. BUILDING THE FOUNDATIONS FORTRUSTED ARTIFICIAL INTELLIGENCE RESPONSE TO THE UK GOVERNMENT WHITE PAPER,A PRO-INNOVATION APPROACH TO AI REGULATION In March 2023, the UK government’s Department for Science,Technology & Innovation published a white paper entitledA Pro-innovation Approach to AI Regulation. The white papersets out the government’s strategy for supporting innovation,while providing a framework to ensure that the risks associatedwith AI are identified, addressed and mitigated. This paper, from ACCA and EY, is a response to that whitepaper. Our aim is to provide policymakers with a constructivecritique of the white paper, informed by our positions withinthe accountancy and business ecosystem, and the access tofeedback and inputs we have across our stakeholder bases. For further information: Narayanan Vaidyanathan,Head of PolicyDevelopment, ACCA Dr. Ansgar Koene,Global AI Ethics andRegulatory Leader, EY Forewords Not a day goes by without AI being in the news, and it features strongly in the publicconsciousness due to its potential to introduce both new opportunities and previouslyunseen risks. The release of the UK government’s AI white paper has provided a timelyopportunity to take stock. As this paper notes, we’re supportive of the overall pro-innovation approach, and the importanceof multi-stakeholder feedback, such as capturing the voice of SMEs and the UK regionsoutside London. We also support the desire to build bridges internationally, which alignsstrongly with ACCA’s own global approach. We strongly endorse the explicit reference to the roleof audit and assurance and related tools as a key part of the solution to ensure an AI ecosystemthat is underpinned by ethical practices. A flexible approach to manage the fast pace of new development can help – the current waveof generative AI, for example, has exploded quite recently. However, further, more prescriptiveguidance may be needed to establish clarity on where accountabilities lie in some instances. Helen Brand OBEChief executive, ACCA Overall, we see this as the start of a multi-year process and look forward to collaborating withand supporting UK government in this important endeavour in any way we can. The government