The UK government’s recently launched Regulatory Innovation Office (RIO) aims to reduce the burden for businesses looking to bring new products and services to the market. The idea is to speed up approvals, access markets quicker, and in doing so, fuel economic growth.
Initially, the RIO will support the growth of four fast-growing areas of technology: engineering biology; space; AI in healthcare; and connected and autonomous technology. As it evolves, it will go on to back other areas. Of particular relevance to the food and drink industry are engineering biology, which is used to make food production more efficient and sustainable, AI, and connected and autonomous technology, including drones.
The cross-cutting nature of these emerging technologies can mean significant regulatory complexity, and overlap, and risk of enforcement action and disputes. This is especially so given recent UK and EU regulation related to connected devices, or Internet of Things, AI and cybersecurity, operational resilience, ESG, and smart and open data. Innovators need to be across the detail.
However, the positive impact on the sector could be massive – digital transformation continues from farm to fulfilment, through innovations in data analytics, robotics, automation, AI/GenAI, VR/AR, drones and connected systems. According to a recent report from Deloitte, the overall agritech revenue opportunity alone will be $18bn globally in 2024, representing 19% CAGR from 2020 to 2024.
Growth across the supply chain could accelerate significantly under a simpler and more certain regulatory environment – a major boon considering the high inflation, costs, sanctions, protectionism and myriad other factors that have hampered innovation in recent years.
The responses of industry organisations such as TechUK, the CBI and the BioIndustry Association have been positive, too. They have noted the potential simplification, coherence and pace, as well as the significant private investment, the new office could unlock. Indeed, the passing of the Automated Vehicles Act in 2024 shows what can be achieved through such an approach.
The RIO will bring regulators together to work on removing obstacles and regulation for the benefit of businesses and the public. Sitting within the Department for Science, Innovation & Technology, it will also complement efforts by the government to set regulatory frameworks for other new and emerging technologies such as quantum.
The RIO promises to cut a new course through the complex regulatory landscape. How quickly it will do so and the impact it will make are still unclear. Perhaps the most important challenge for RIO will be to see how it can consolidate and avoid duplication in overlapping regulatory frameworks – and, in so doing, utilising AI to merge converging regulatory matrices and risk assessments.
Regulatory innovation labs, such as those launched by the Financial Conduct Authority, may serve as useful precedent. Until then, the sector will need to continue to consider carefully, early in the development cycle, and in a holistic way, the potential risks concerning new technology products and services in the sector.
For those industries willing to innovate and experiment but needing the guidance to do so safely, this could be a watershed moment.
No comments yet