DMA feeds into UK Government Innovation and Tech Working Group for Industrial Strategy

As the voice for the data and marketing industry, the DMA has responded to requests from the UK Government to contribute to the tech working group advising on Industrial Strategy.

Industrial Strategy is a central legislative tool used by the government to define the role and plan how it will support business in the economy. Developed since the 1960s, initial strategies focused on direct intervention in declining industries.

By the 1980s, policies shifted to promoting free-market principles, emphasizing privatisation and deregulation. The 2000s saw a resurgence of strategic planning, with targeted support for high-growth sectors like technology and green energy.

Recent strategies, especially post-2017, prioritize sustainable growth, regional economic balance, and innovation in response to global challenges like climate change and digitalization. The strategies evolved to adapt to shifting economic, social, and environmental priorities.

Naturally, the most recent strategies rely increasingly on data, tech and AI as prominent components. This iteration is set to develop and deepen this trend further. More than ever, and encouraging, the government has engaged key industry players, including the DMA.

Specifically, the UK Government has sought DMA expertise about the role of digital innovation and technology in the marketing sector, covering areas like data use, AI adoption, and government legislation. The government asked about past and future technological impacts on productivity, sustainability, and regional growth, as well as barriers and enablers to tech adoption.

The DMA's response covered a range of subjects, calling on expertise across member councils and the policy team. We highlighted that digital innovation, including the rise of e-commerce, smartphones, and social media, has transformed customer engagement, making data central to building customer relationships and optimising experiences. Our sector was an early adopter of cloud computing, leading advancements in marketing and data management.

New technologies enable more targeted, efficient marketing, benefiting SMEs by levelling the playing field with larger companies. Improvements in targeting reduced waste in digital channels and support sustainability goals and regional economic balance. We also noted that digital tools help SMEs compete in broader markets, promoting growth and reducing inequality.

We emphasised that reforming data protection laws is essential for fostering innovation. Specific reforms, such as those in the newly announced Data Use and Access Bill, would reduce regulatory burdens and facilitate lawful data use, especially benefiting SMEs in our sector.

In terms of the challenges facing the industry, we acknowledged the gradual adoption of AI in our sector for tasks like customer segmentation and content creation was positive. However, barriers including data privacy concerns, cost, and a lack of expertise persist. The DMA believes clearer guidance is needed to help SMEs safely implement AI.

We also argue there is room for improvement in regional data infrastructure. The UK Government had announced they would no longer provide the £800 million needed to develop the Exoscale computer at Edinburgh University. However, the DMA believes the huge R&D and economic benefits would be obtained by this investment, and would further establish Edinburgh as a globally important data, AI, and tech hub.

The DMA's full response called upon expertise across member councils and the policy team and can be downloaded here.