Recommendation 38

A risk-based approach is needed to address AI harms. The Hugging Face incident illustrates the significant risks that can arise from the newest and most advanced AI models, and legislation should address those risks on a precautionary basis with a view to avoiding harm, by analogy with the regulation of other potentially harmful products such as pharmaceuticals. It should only impose legal obligations where they are necessary and proportionate to prevent unacceptable risks and ensure effective redress for harm. Low risk AI systems should be subject to fewer 79 and less demanding legal requirements. Legislation should not place unjustified burdens on businesses, especially SMEs, to enable UK companies to innovate and for the UK to benefit from the advantages AI can confer. (Conclusion, Paragraph 186)