UK and US ‘data bridge’ to extend Data Privacy Framework

The United Kingdom and United States will together create a 'data bridge' as an extension to the Data Privacy Framework, which is set to facilitate the free flow of personal data between the two countries.

The new 'data bridge' will speed up the delivery of data enabled services to the US, which reached 79 million in 2021, making up 93% of the UK's services exports.

International data transfers hold a prominent place in modern day business transactions, however, red tape currently holds back the partnership between the two countries meaning UK businesses must have costly contract clauses in place to ensure protection and compliance when sending personal data.

The two nations hope to speed up processes for businesses, reduce costs, and increase opportunity making it easier for British businesses to operate and trade internationally while meaning US companies who are approved will be able to receive UK personal data.

"We live in an increasingly digital era where copious amounts of data abound," says Sridhar Iyengar, Managing Director of Zoho Europe.

"It is great to see the UK government taking steps to allow businesses to utilise data effectively," he says. 

"Data has become one of the most valuable resources for businesses yielding huge benefits from informing strategic decision-making, to forecasting, to addressing operational inefficiencies, to customer preferences, and much more," Ivengar says. 

"However, awareness around the safe and ethical use of data is vital for businesses to leverage its potential successfully.

"Even with proper regulations and guidelines, businesses must be vigilant about how they use their customers data and remain transparent to protect themselves from any backlash," he says. 

"As digital transformations continue and digital economies  flourish, data will cement itself as a prominent business tool. Forward-thinking organisations that optimise the benefits offered by data will be at the forefront of this evolution."

Chris Downie, CEO and Co-Founder of Pasabi, adds, "Technological collaboration is hugely important in the development and regulation of emerging technologies, such as AI, in order to truly unlock the benefits for businesses. 

"The data bridge agreement is a positive step toward facilitating the greater sharing of technology, best practices and expertise to enhance how we are using data," he says.

"Taking an issue such as fraud detection, improving data collation, management and storage can enable businesses to better analyse trends and patterns to detect fraudulent activity faster and with more accuracy," Downie says.

Secretary of State for Science, Innovation, and Technology, Chloe Smith, says the commitment in principle is the result of two years of positive and productive discussions with the United States. 

"Data bridges not only offer simpler avenues for the safe transfer of personal data between countries, but also remove red tape for businesses of all sizes and allow them to access new markets," she says.