More than a third (34%) of UK IT service providers say regulatory approvals delay 'almost every' technology project — with nearly one in five experiencing average delays of more than three months. This is according to new research from Telehouse Europe, a leading global data centre service provider.
34% say regulatory approvals delay almost every tech project
51% have cut or offshored tech roles, or plan to, due to AI regulatory complexity
37% cite inconsistent international rules as a top concern
The slowdown comes despite strong support for the UK's approach to tech regulation. Two-thirds (67%) of service providers say current data protection rules are accelerating their ability to launch new digital services.
However, uncertainty over how regulation is applied in practice is beginning to undermine that confidence. Over half (51%) of service providers say they have already cut or offshored technology roles, or plan to do so within the next 12 months, due to the cost and complexity of managing AI regulation.
Strong regulation and robust approvals are essential to building trust in AI and digital services. The opportunity now is to improve communication and clarity around approval processes. Better dialogue between regulators and service providers would help reduce uncertainty, shorten timelines and allow well-governed projects to move forward without unnecessary delay.
