U.S.-U.K. Tech Partnership Faces Regulatory Challenges
The U.S. and U.K. are advancing a technology partnership aimed at enhancing artificial intelligence capabilities, but regulatory tensions loom as both nations navigate competing priorities. Keegan McBride, senior policy advisor in emerging technology and geopolitics at the Tony Blair Institute, emphasized that the U.K. has limited options for AI infrastructure, with only the U.S. and China equipped to meet its needs. “For the U.K. and for many other countries that want to access frontier AI capabilities, the United States represents the best option,” he stated, reports 24brussels.
The Trump administration is keen to offer American AI “packages” to allies, promoting them as a means to achieve AI sovereignty. “We are committed to finding a way to enable America’s private companies to meet your national technological needs,” said White House tech policy chief Michael Kratsios during the APEC conference in South Korea in August.
U.S. tech companies are eyeing substantial government contracts alongside this partnership. Recently, the U.K. defense department announced a £400 million deal with Google Cloud. Earlier this year, Nvidia, OpenAI, Anthropic, and Google Cloud also entered distinct partnership agreements with the U.K. government.
Just don’t mention rules
The emerging U.S.-U.K. tech agreement is anticipated to sidestep crucial discussions around online regulation, a topic the White House has consistently raised during trade negotiations. U.K. Labour leader Keir Starmer is under pressure from various political factions, including Nigel Farage, leader of the Reform UK party, who recently likened Britain’s free speech laws to those of North Korea during a speech in the U.S. Congress.
Starmer has publicly defended Britain’s Online Safety Act, including in discussions with Trump at his Scottish Turnberry resort in August. Meanwhile, Trump has criticized the Digital Services Tax and other competitive regulations impacting bilateral relations.
McBride highlighted the increasing regulatory concerns from the U.S., particularly regarding issues of censorship and free speech that could affect tech cooperation. An individual familiar with the agenda for Trump’s visit indicated that key regulatory matters currently troubling the U.S. include the Digital Services Tax—repeatedly ruled out by the U.K.—the EU’s Digital Markets Act, and the CSDD, an EU supply chain disclosure reporting standard. The source remarked, “There are people inside the White House that are very set on expanding the U.S.-U.K. relationship as a means to counterbalance the EU, and I think that’s a big part of this trip.”
