In early 2025, the government’s pledge to establish the UK as a global leader in artificial intelligence (AI) was met with optimism. Promising to boost growth and innovation, the vision of the UK as a ‘great AI superpower’ could open doors to technological advancements and economic opportunities.
However, challenges loom.
AI’s transformative potential is undeniable, but it carries risks if not developed and deployed responsibly. Among these are concerns around the use of data and the threat of inherent bias in AI systems – issues that could lead to a rise in class action lawsuits.
Data and AI: a legal minefield
AI thrives on data. It uses vast amounts of information to learn, make predictions, and support decision-making. But what happens when this data is mishandled or used without proper consent?
High-profile data protection cases -including those against British Airways and Ticketmaster – have highlighted how organisations have landed in hot water for misusing personal data.
- In 2020, BA was fined £20 million by the UK’s data protection watchdog for a data breach which affected more than 400,000 passengers.
- While Ticketmaster was fined £1.25 million for failing to keep its customers’ payment data secure.
AI systems heighten such risks. And while the government has pledged to protect health data, robust measures will be needed to ensure sensitive information remains secure.
If algorithms rely on flawed or unethically sourced data, or if breaches occur, the consequences for individuals could be severe – financially, reputationally, or otherwise. Such scenarios provide fertile ground for class actions, as affected groups come together to hold organisations to account.
The problem of bias in automated decision-making
AI learns from historical data, which can be shaped by societal inequalities and human prejudices. When these biases are embedded into algorithms, they can perpetuate and even amplify unfair treatment.
- Imagine an AI tool used to screen job applicants rejecting candidates based on factors tied to gender or ethnicity. Not only would this be ethically indefensible, but it could also lead to costly lawsuits for discrimination.
- LIkewise, a financial AI system incorrectly flagging individuals as high-risk could lead to widespread claims for wrongful denial of credit or loans.
- Similarly, medical AI that misdiagnoses due to biased data could expose the NHS to negligence claims.
Preparing for the future
The promise of AI is immense, and the ambition to harness the technology to drive growth could pave the way for incredible innovation. But AI adoption must be accompanied by accountability. And, as technology evolves, so too must the legal frameworks designed to protect people from its unintended consequences.
At the same time, organisations using AI must take proactive steps to mitigate risks. This includes conducting thorough audits, ensuring transparency in how AI decisions are made, and implementing robust safeguards against bias. Without these measures, the push to adopt AI could backfire, exposing businesses to reputational damage and legal action.
