UK to Close AI Chatbot Loophole, Impose Fines and Bans
UK to Close AI Chatbot Loophole, Impose Fines and Bans

Prime Minister Keir Starmer is set to announce a crackdown on AI chatbots that put children at risk, with firms facing fines of up to 10% of global revenue or having their services blocked in the UK. The move follows public outrage over Elon Musk's Grok tool, which was stopped from creating sexualised images of real people in the UK last month.

The government plans to close a legal loophole in the Online Safety Act, which currently does not cover AI chatbots unless they act as search engines, produce pornography, or operate in user-to-user contexts. This means chatbots can create harmful content—such as material encouraging self-harm or child sexual abuse material—without facing sanctions. The change could happen within weeks.

Ofcom, the online regulator, admitted it lacked powers to act against Grok because images created by a chatbot without internet searching are not covered by existing laws unless they amount to pornography. The loophole has been known for over two years.

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Starmer said: 'Technology is moving really fast, and the law has got to keep up. The action we took on Grok sent a clear message that no platform gets a free pass. Today we are closing loopholes that put children at risk.'

The government is also accelerating a consultation on possible restrictions on social media use by children, including a potential under-16 ban or measures like restricting infinite scrolling. Changes could come as soon as this summer. However, the Conservatives dismissed the announcement as 'more smoke and mirrors', noting the consultation has not yet started.

Chris Sherwood, chief executive of the NSPCC, said young people were reporting harms from AI chatbots, including a 14-year-old girl given inaccurate information about eating habits. He warned: 'AI is going to be that on steroids if we're not careful.'

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