Scott Dylan of NexaTech Ventures Calls for Clarity as UK AI Regulation Tightens in 2025

DUBLIN 2, Ireland - Nov. 13, 2025 - PRLog -- Scott Dylan, founder of NexaTech Ventures, says the UK's evolving artificial intelligence regulatory regime will require early-stage companies to redesign their development processes around auditability, transparency, and documented risk management far earlier than before.

The UK's 2025 regulatory update builds on the government's cross-sector AI framework, which tasks existing regulators such as the Financial Conduct Authority (FCA), Information Commissioner's Office (ICO), and Medicines and Healthcare products Regulatory Agency (MHRA) with interpreting and applying core AI principles within their own sectors. Dylan says this structure creates additional pressure on companies operating in highly regulated areas such as finance, healthcare, and security.

"The UK wants to set a global benchmark for safe deployment," Dylan said. "The challenge is whether regulators can keep their approaches consistent when their sectors have different levels of technical maturity."

New Evidence Requirements for AI Systems

Under the updated framework, businesses will need to produce more detailed evidence of how their AI systems are designed, monitored, and governed. Regulators are emphasising documented risk classification, explainability, and data provenance, alongside ongoing monitoring and human oversight.

Guidance published through 2025 continues to move previously voluntary AI ethics principles toward clearer regulatory expectations. The FCA has increased its focus on explainability and model risk, while the ICO has reinforced its position on automated decision-making and data minimisation. The British Standards Institution (BSI) has also issued updated standards on AI management and auditability, signalling growing expectations for verifiable governance.

Impact on Startups and Innovation

Dylan says these developments will require early-stage founders to integrate governance into their product roadmaps from the start. Although it increases upfront costs, early auditability can also strengthen a company's credibility.

"Founders who can demonstrate responsible AI practices will stand out," Dylan said. "Investors want clarity, and regulators want evidence. Building that structure early is the safest path."

NexaTech Ventures, a £100 million fund backing AI startups in healthcare, logistics, and financial technology, has already begun supporting portfolio companies to meet documentation and governance requirements expected to become standard in the UK market.

Reducing Regulatory Uncertainty

Dylan welcomes the direction of travel, arguing that clearer rules give investors more confidence to back AI-driven businesses. "Ambiguity creates risk. Predictable rules, even strict ones, allow investment to flow more confidently," he said.

The UK government is expected to publish additional guidance in 2025 to help regulators maintain consistency across sectors. A central coordination function is in development to reduce conflicting interpretations and support a unified approach to implementation.

Visit https://nexatechventures.com or https://scottdylan.com for more information on the company and founder.