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 per cent 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.

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

It is great to see the UK government taking steps to allow businesses to utilise data effectively. 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. 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. 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, commented: “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. 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.”

Secretary of State for Science, Innovation, and Technology, Chloe Smith, said: "This commitment in principle is the result of 2 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."