PRIVINOTCH  /  Insights  /  Agentic AI and compliance

Agentic AI is not an excuse for poor compliance

On 8 October the UK Information Commissioner’s Office made its position on AI agents clear. Here is what it announced, and what AI start-ups should do about it.

10

Foundation model developers have made, or committed to make, data protection changes, according to the ICO. [ICO]

20 November 2026

Closing date for the ICO’s call for evidence on agentic AI, which opened on 8 October. [ICO]

Forthcoming

The ICO’s statutory code of practice on AI and automated decision-making. [ICO]

If you are a founder building with AI, the ICO’s message last week is worth reading closely. Autonomy changes how a system behaves. It does not change who is accountable for what that system does with personal data.

What the ICO announced

On 8 October the ICO said that ten of the largest foundation model developers operating in the UK have made, or committed to make, data protection changes following its scrutiny. The changes include clearer transparency information, stronger ways for people to exercise their rights, and more rigorous assessment of safeguards. The ICO says it is monitoring progress against those commitments. [ICO]

It also opened a call for evidence on agentic AI. The questions cover data security, transparency, accountability, automated decision-making, fairness and purpose limitation, and lawfulness of processing, and the ICO invites views from developers, deployers and other experts. The ICO says the evidence will inform its guidance and support the development of its forthcoming statutory code of practice on AI and automated decision-making. [ICO]

“…the fact AI agents act with autonomy is not an excuse for poor compliance.”
Richard Nevinson, Director of Technology Regulation, ICO, 8 October 2026

What this means for AI start-ups

The ICO’s report on foundation models is addressed to developers, not to the organisations that build on them. The five points below are our reading of what follows for start-ups, based on the general UK GDPR position. They are not legal advice.

1

Your provider’s commitments are not your compliance

Where you are the controller for your product’s processing, the lawful basis, transparency and rights handling are yours. A provider improving its own transparency information does not discharge your duties to your users.

Do nowKeep a record of the due diligence you have done on each model provider: what personal data flows to them, on what terms, for how long, and how rights requests reach you.
2

Agents widen the risk surface

The ICO’s questions span security, transparency, accountability, automated decision-making, fairness and lawful processing. An agent that books, buys, decides or acts touches more personal data, in more places and with less human involvement, than a tool that only answers questions.

Do nowMap the personal data each agent can see and act on, the tools and permissions it holds, the logs you keep, and the points where a human reviews or can step in.
3

Special category data raises the bar

The ICO’s report sets out its position on how special category data can be used lawfully. Under UK GDPR you need both a lawful basis and an additional condition to process it. If your product touches health, biometric or similar data, expect investors and enterprise buyers to ask how you handle it. [ICO]

Do nowIdentify where special category data could enter your product, including through prompts, uploads and agent tool use, and settle your lawful basis and condition before a buyer asks.
4

The code will become the yardstick

Once the statutory code is published, we expect buyers, investors and their advisers to use it as a benchmark in procurement and due diligence. That is our expectation, not a statement from the ICO. A minimum viable governance baseline now costs far less than a retrofit later.

Do nowName an owner for AI and data protection, keep an inventory of the AI you use, and document when a human is involved in agent decisions. Our Baseline Responsible AI Programme takes this to a documented, board-ready baseline in eight weeks.
5

You can shape it

The call for evidence closes on 20 November 2026. Regulators benefit from hearing how smaller firms work in practice. Responses go through the ICO’s online survey, and the ICO may publish them in full or in summary, so leave out anything you would not want made public. [ICO]

Do nowIf you build or deploy agents, put a named person on a short response and block the time in your diary.

Where to start

If you are building with agents and are not sure where you stand, begin with three questions. What personal data does the agent touch? Who is accountable for it? Where does a human step in? Our free checklist, “15 questions to ask when governing agentic AI”, works through the rest. Download it free below, or start now with our due diligence checklist, forty questions across eight areas.

Tope SongonugaProgramme Director, Data Privacy & AI Governance, PRIVINOTCH

Sources

  1. ICO, ICO secures changes from leading AI developers as scrutiny extends to AI agents, 8 October 2026.
  2. ICO, Agentic AI call for evidence, open 8 October to 20 November 2026.
  3. ICO, Building trust and transparency into generative AI development: our work to create regulatory certainty.
Facts and dates in this article are taken from the ICO pages above and were checked on 12 October 2026. Please check those pages for the latest position. This article is general information, not legal advice.
Free checklist

15 questions to ask when governing agentic AI

Tell us where to send it. The download link appears as soon as you submit the form.

  • Fifteen questions across six areas, mapped to the topics in the ICO’s call for evidence
  • Evidence prompts and a simple score out of 30
  • Useful for founders, boards, buyers and investors

Prefer to talk it through? Book an intro call or email info@privinotch.co.uk.

Thank you. Your checklist is ready. Download the PDF

We use your details to send you the checklist and, where relevant, to follow up about our services. See our Privacy Notice.