The UK government is reforming its national security investment screening rules to address evolving threats. Key changes include adding water companies as a sensitive sector for mandatory screening and creating new standalone categories for advanced semiconductors and critical minerals.
Conversely, "off-the-shelf" AI systems will be removed from mandatory scrutiny, with the focus shifting to firms developing or modifying advanced AI. The current rules will remain until new legislation is introduced later this year.
The main topics covered are national security investment screening, with specific focus on the water sector, advanced semiconductors, critical minerals, and artificial intelligence.
Britain will refine its national security investment screening rules, including tightening oversight of sectors such as water and advanced semiconductors, the government said on Thursday.
Britain â has â laws which determine when private investment must âbe referred for greater scrutiny.
Government says âreforms are needed to ensure the investment screening regime continues to âprotect against evolving national â security risks.
"Off-the-shelf" âsystems powered by âartificial âintelligence to be removed from â mandatory screening; focus instead on firms developing âor modifying advanced AI.
Water âcompanies will be deemed a sensitive sector and included in mandatory screening for the first time. This will cover major âoperators and large independent providers, not general supply chain companies.
Separate âstandalone categories â will be created for semiconductors and critical minerals.
Government considering whether to expand âthe list of critical minerals.
Current rules remain in force until new secondary legislation is laid later this year.
Britain â has â laws which determine when private investment must âbe referred for greater scrutiny.
Government says âreforms are needed to ensure the investment screening regime continues to âprotect against evolving national â security risks.
"Off-the-shelf" âsystems powered by âartificial âintelligence to be removed from â mandatory screening; focus instead on firms developing âor modifying advanced AI.
Water âcompanies will be deemed a sensitive sector and included in mandatory screening for the first time. This will cover major âoperators and large independent providers, not general supply chain companies.
Separate âstandalone categories â will be created for semiconductors and critical minerals.
Government considering whether to expand âthe list of critical minerals.
Current rules remain in force until new secondary legislation is laid later this year.