Red tape or responsible tech? Regulation’s growing influence on govtech suppliers
Government technology suppliers are facing increased pressure as regulatory frameworks like the EU AI Act and UK Data Protection Act become central to commercial strategy. Industry experts warn that the high administrative burden of compliance may favor large corporations while stifling innovative startups.
Why it matters
The growing 'compliance moat' could reduce competition in the public sector tech market, potentially limiting the government's access to more agile, innovative solutions.
Regulation is no longer a distant policy debate for government technology (govtech) suppliers. It now shapes product design and the pace of deployment. From the UK Data Protection Act (DPA) 2018 to the European Union (EU) Artificial Intelligence (AI) Act and cyber security frameworks such as NIS2 , compliance has moved from the margins to the centre of commercial strategy.
The article presents a balanced view by including perspectives from different industry experts regarding the trade-offs of regulation.
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