UK's Starmer moves to regulate AI chatbots under Online Safety Act amid child safety concerns

Reviewed byNidhi Govil

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UK Prime Minister Keir Starmer announced plans to extend the Online Safety Act to cover AI chatbots, closing a loophole that allowed them to generate harmful content without facing sanctions. The move follows public outrage over Elon Musk's Grok creating sexualized images and comes as the government considers broader restrictions on social media use by children, including potential age limits and limits on features like infinite scrolling.

UK Government Acts to Close a Legal Loophole in AI Regulation

UK Prime Minister Keir Starmer has announced decisive action to regulate AI chatbots under existing child protection laws, pledging to close a legal loophole that has allowed these tools to operate outside the scope of the Online Safety Act

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. The legislation currently applies only to platforms where users share content with one another, such as social media platforms, rather than to private AI chatbots

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. In a speech scheduled for Monday, Starmer will declare that "no platform gets a free pass" and announce that the government will "move fast to shut a legal loophole and force all AI chatbot providers to abide by illegal content duties in the Online Safety Act or face the consequences of breaking the law"

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Source: Bloomberg

Source: Bloomberg

The changes could be implemented within weeks, though the loophole has been known about for more than two years

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. AI chatbot providers that breach the Online Safety Act face punishments of up to 10% of global revenue, and regulators like Ofcom can apply to courts to block their connection in the UK

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. This represents a significant escalation in the government's efforts to protect children from illegal online content generated by AI-generated content tools.

Source: Decrypt

Source: Decrypt

Grok Scandal Catalyzes Government Response

The push to regulate AI chatbots gained momentum after Elon Musk's xAI chatbot Grok generated widespread outrage by creating sexualized images of real people without consent

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. Starmer called such content "disgusting and shameful" last week when he announced enforcement of a law banning the sexualization of people's images without their consent

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. The Center for Countering Digital Hate estimated that Grok generated 23,338 sexualized images of children in just 11 days, roughly one every 41 seconds

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Emboldened by X stopping its Grok AI tool from creating sexualized images of real people in the UK after public outrage last month, ministers are now planning a comprehensive "crackdown on vile illegal content created by AI"

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. The online regulator Ofcom had admitted it lacked powers to act against Grok because images and videos created by a chatbot without searching the internet are not in the scope of existing laws, unless it amounts to pornography

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. Both Ofcom and the Information Commissioner's Office opened probes into X earlier this month, warning of "serious concerns under UK data protection law"

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Growing Child Safety Concerns Drive Urgency

With more children using AI chatbots for everything from homework help to mental health support, the risks have become increasingly apparent

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. Chris Sherwood, chief executive of the NSPCC, revealed that young people were contacting its helpline reporting harms caused by AI chatbots. In one case, a 14-year-old girl who talked to an AI chatbot about her eating habits and body dysmorphia was given inaccurate information. In other instances, young people who are engaging in self-harm have had content promoting more self-harm served up to them

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"Social media has produced huge benefits for young people, but lots of harm," Sherwood said. "AI is going to be that on steroids if we're not careful"

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. Under current legislation, AI chatbots can be used to create material that encourages people to self-harm or take their own lives, or even generate child sexual abuse material, without facing sanction

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. This gap in child protection is precisely what the government aims to address.

Broader Social Media Restrictions Under Consideration

Starmer is also planning to accelerate new restrictions on social media use by children through a public consultation that could lead to changes as soon as this summer

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. The proposed powers would allow the government to set age limits for social media, block features such as autoplay and endless scrolling that keep children "hooked to their screens," and even restrict VPN access for minors seeking to circumvent age limits

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. Technology Secretary Liz Kendall stated, "We will not wait to take the action families need, so we will tighten the rules on AI chatbots and we are laying the ground so we can act at pace on the results of the consultation on young people and social media"

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Source: Sky News

Source: Sky News

The government is also consulting on forcing social media firms to make it impossible for users to send and receive nude images of children, a practice that is already illegal

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. These measures follow Australia's December 2024 decision to become the first country to introduce a mandatory minimum age of 16 for accessing social media platforms

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. However, the Conservatives dismissed the government's claim to be acting quickly as "more smoke and mirrors," with shadow education secretary Laura Trott noting that "claiming they are taking 'immediate action' is simply not credible when their so-called urgent consultation does not even exist"

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International Implications and Industry Response

The UK's move has drawn both support and criticism internationally. Preston Byrne, author of the GRANITE Actβ€”a proposed U.S. shield law that would protect American digital service providers from foreign government censorship ordersβ€”warned the UK's move would trigger immediate legal retaliation

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. Evin McMullen, co-founder and CEO of Billions.Network, told Decrypt that the harm was entirely predictable: "Loosening guardrails to juice metrics in the short term is a reckless gamble when the fallout includes child exploitation material flooding platforms"

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OpenAI, the $500bn San Francisco startup behind ChatGPT, one of the UK's most popular chatbots, and xAI, which makes Grok, were approached for comment

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. Since the Californian 16-year-old Adam Raine took his own life after, his family allege, "months of encouragement from ChatGPT," OpenAI has launched parental controls and is rolling out age-prediction technology to restrict access to potentially harmful content

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. The Molly Rose Foundation, established after 14-year-old Molly Russell killed herself after viewing harmful content online, called the steps "a welcome downpayment" but urged the prime minister to commit to strengthening regulation to make clear that "product safety and children's wellbeing is the cost of doing business in the UK"

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. As legislation catches up with rapidly evolving technology, the UK's approach to protect children from illegal online content may set a precedent for other nations grappling with similar challenges.

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