Global regulators sharpen focus on AI safety and consumer risks

AI regulatory activity clustered around consumer protection, safety, and governance across the UK, US, and Asia. In the UK, the FCA published The Mills Review on how AI could reshape retail financial services for consumers, firms, markets, and regulators by 2030 and beyond, while the DRCF opened a consultation on consumer interest in generative and agentic AI. UK officials also signaled planned child safety measures for AI chatbots, platform design, and age verification later in July 2026.

In the US, the FTC sought public comment on a proposed policy statement warning that AI companies could violate consumer expectations for objectivity and accuracy if they distort system outputs for undisclosed ideological objectives. The statement links such conduct to potential “unfair or deceptive” practices under Section 5 of the FTC Act.

Asian regulators and governments moved on both cooperation and controls. India and Japan signed agreements covering AI, defense, and energy, while Hong Kong launched a personal data AI sandbox for schools. China proposed unified internet information service rules that would expand the framework from 27 to 94 articles and bring obligations for recommendation algorithms, generative AI, and livestreaming into one compliance structure.

South Korea released the ‘3rd Basic Plan for Personal Information Protection to Promote Trust-Based AI (AI) Innovation (2027-2029),’ focused on risk-based protection, MyData expansion, deepfake risks, overseas data transfers, rights relief, and biometric safeguards for minors. Vietnam classified 46 AI systems as high-risk across six critical sectors and set oversight and compliance requirements under Decision No. 33/2026/QD-TTg.