Curated by Better WAI
Edition 01
5 May 2026
For RWK Goodman
Legal Intelligence
Brief
AI-informed sector intelligence for a changing legal landscape
AI in Law
The governance gap: 17% of UK law firms have no AI policy — despite actively using it
The UK legal sector has passed a tipping point. AI adoption is no longer the question — execution is. Yet 17% of firms have no formal AI policy in place, despite actively encouraging use. The Law Gazette's 2026 Insights Report concludes that workflow design is now the differentiator, and governance gaps are creating compounding risk around data security and client disclosure. For managing partners, this is the year "we'll figure it out" stops being an acceptable position.
Law Gazette — UK & Ireland Legal Insights Report 2026
UK courts warn of contempt proceedings after AI hallucinations reach submissions
Multiple UK firms have faced judicial criticism for AI-generated case citations that proved fictitious. A High Court judge has warned cost orders and regulatory referrals may follow.
ResultSense / Law Society
Fortis v Krafton: company faces liability after using ChatGPT in place of legal advice
AI suggestions failed to identify a breach of contract, ignored duties of good faith, and never advised consulting a solicitor. A costly and avoidable outcome.
Lawson West Solicitors
UK AI Bill expected post King's Speech — scope broader than originally planned
Expected as early as May 2026, the Bill is set to cover AI safety and potentially IP, though it won't replicate the EU AI Act model.
Bird & Bird / DSIT, April 2026
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Banking & Financial Services
Non-financial misconduct rules extended to all FCA firms from September 2026
From 1 September 2026, FCA conduct rules extend to cover bullying, harassment and violence across all firms — not just those carrying out FSMA-regulated activities. The changes mean any staff member subject to COCON could breach FCA rules through serious misconduct against a colleague. This is a significant expansion of the regulatory perimeter for financial services employers, with direct implications for HR policy, disciplinary procedures and senior manager accountability.
Womble Bond Dickinson / FCA Non-Financial Misconduct Instrument 2025
Buy Now Pay Later regulation confirmed — rules in force from 15 July 2026
The FCA has published final BNPL rules, bringing a long-unregulated lending product into scope for the first time. Financial services and retail clients with BNPL exposure should review compliance positions now.
Farrer & Co / FCA Regulatory Priorities, March 2026
Cryptoasset licensing regime finalised — comes into effect October 2027
Legislation covering stablecoin issuance, dealing in cryptoassets and staking was laid in late 2025. The FCA is finalising rules in 2026. Firms with digital asset exposure need to monitor the authorisation timeline carefully.
Linklaters Banking Regulation Guide 2026
Energy & Infrastructure
Planning and Infrastructure Act becomes law — sweeping reforms to how energy and housing projects are approved
The landmark Planning and Infrastructure Act received Royal Assent in December 2025, introducing the most significant shake-up of the UK planning system in a generation. It replaces the "first come, first served" grid connection queue with a "first ready, first connected" system, fast-tracks nationally significant infrastructure projects, and gives the Secretary of State new powers to deliver community benefit schemes for areas hosting energy infrastructure. For developers, landowners and infrastructure investors, the implications are substantial and immediate.
GOV.UK / Energy UK, December 2025
Ofgem approves £28bn network investment — new price control period begins April 2026
The five-year RIIO-ED2 period begins with £28bn approved, potentially rising to £90bn. A new regulatory regime for heat networks also launches this year.
Slaughter and May Energy & Infrastructure Horizon Scanning 2026
Long Duration Energy Storage cap-and-floor scheme: investment decisions expected summer 2026
Ofgem's LDES Window 1 decisions are due this summer, providing revenue certainty for approved projects. A significant moment for energy storage investment and project financing.
Morgan Lewis / Ofgem 2026
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Health & Social Care
Mental Health Act 2025 begins phased commencement — higher detention threshold and new patient rights now in force
The Mental Health Act 2025 — the most significant reform to mental health legislation since 1983 — began its phased commencement in February 2026. A new "serious harm" test for detention under sections 2 and 3 is now in force, raising the threshold for compulsory admission. Patients now have the right to choose a "nominated person" with enhanced statutory powers, replacing the previous nearest relative framework. Further implementation phases, including new statutory care and treatment plans, are expected across 2026–27. Health and social care providers, commissioners and their legal advisors need to understand the new framework now.
Kennedys Law / DHSC, February 2026
Data (Use and Access) Act 2025 creates mandatory IT standards for health and care providers
New provisions will require both health providers and IT suppliers to meet consistent data standards — making enforcement action against private providers possible for the first time.
NHS England Digital / DHSC 2026
MHRA National Commission on AI in healthcare regulation — recommendations expected in 2026
The Commission's findings will shape how clinical AI tools and AI-enabled medical devices are regulated in the UK. Health and social care clients with digital health exposure should monitor closely.
GOV.UK / MHRA, December 2025
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Hospitality, Leisure & Retail
Employment Rights Act 2025: the biggest shake-up in a generation hits hospitality hardest
April 2026 saw the first wave of Employment Rights Act reforms come into force — and the hospitality, leisure and retail sectors are among the most exposed. Statutory sick pay now applies from day one of employment with no qualifying period. Paternity and parental leave are now day-one rights. The National Living Wage rose 4.1%, adding an estimated £1.4bn in additional costs for the sector according to UKHospitality. Further reforms on zero-hours contracts, third-party harassment liability and fire-and-rehire protections follow through 2026 and 2027. Employers need to act on contracts, policies and scheduling systems now.
NCASS / Morning Advertiser / Pinsent Masons, April 2026
Business rates overhaul in force from 1 April 2026 — tiered multipliers replace temporary relief
The RHL permanent multiplier system replaces temporary schemes. Smaller venues benefit; larger high-value properties face a new 2.8p surtax. Businesses should review their rateable value position now.
Lords Library / NCASS, 2026
Third-party harassment liability extended from October 2026 — hospitality sector most at risk
Employers will face liability for harassment by customers, clients and contractors. Updated policies, staff training and incident procedures will be essential — particularly for customer-facing businesses.
Bird & Bird / Cezanne HR, 2026
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Tech Sector
Government declines to reform copyright law for AI training — but the legal uncertainty deepens
On 18 March 2026, the government published its long-awaited Copyright and AI Report — and declined to legislate. No opt-out exception, no new regulator, no statutory transparency obligations. Instead: evidence gathering, stakeholder engagement and a pilot licensing marketplace not expected until summer 2026. Meanwhile, copyright still applies, licences are still required, and the Getty v Stability AI appeal heads to the Court of Appeal. For tech businesses training models on third-party content, and for rights holders seeking protection, the legal position remains genuinely unclear.
Bird & Bird / Fieldfisher / RMOK Legal, March 2026
Supreme Court expected to rule on AI patent eligibility — Emotional Perception decision imminent
The Supreme Court will determine whether AI inventions involving artificial neural networks are patentable under the CDPA. The outcome will set the standard for AI IP protection across the UK.
Osborne Clarke IP & AI Horizon 2026
ICO automated decision-making guidance updated — new rules under Data (Use and Access) Act now in force
Provisions relaxing GDPR restrictions on sole automated decision-making came into force in January 2026, with new ICO guidance on agentic AI and ADM expected imminently.
Slaughter and May / ICO, 2026