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Most business owners and key decision-makers I speak to are in the same position: AI tools are already in use across the business (marketing, customer service, HR, analytics, and finance), but governance hasn’t kept pace. That's understandable. Businesses move fast, but regulation moves more slowly. And yet, in 2026, the direction of travel is clear: data protection is becoming more operational (especially around complaints and access requests), and AI governance is moving from “nice to have” to “expected”. This is not to be feared, as you do not need

The way artificial intelligence (AI) is being built into everyday business tools changes faster than most contracts can keep up. If you own an business in the UK, it’s no longer enough for your agreements to cover only traditional risks; they also need to address the way AI systems use your data, generate outputs, and make decisions. The right clauses will protect your intellectual property, help you meet your legal obligations, and ensure suppliers are accountable. AI has shifted from “nice-to-have” tech to a core driver of growth for many SMEs.

Having worked closely with tech startups and established companies alike, I’ve seen firsthand how many of them struggle to keep up with data protection obligations - from figuring out exactly what documents they need to juggling rapid growth with UK GDPR requirements. One of the most commonly misunderstood, but absolutely critical contracts is a Data Processing Agreement. Businesses often confuse a this with a privacy policy or other legal documents, so I’ve put together answers to the most frequently asked questions about DPAs.