UK AI Firms Call for Non-Compete Clause Limits

Several of the UK's most valuable AI companies have sent an open letter to the government calling for restrictions on non-compete clauses and lengthy notice periods. The signatories argue that these practices significantly hinder the mobility of top researchers and impede industry progress.

London-based neolab Inherent coordinated the letter, which has garnered support from over 30 company leaders. They contend that current practices are "outdated methods" that stifle innovation and competition, seeking legislative changes that better align with the needs of modern, fast-growing startups.

The list of signatories includes prominent names such as Graphcore, Darktrace, Babylon Health, and Tractable. They highlight that non-compete clauses are particularly problematic in the deep tech sector, where rapid knowledge sharing and expertise exchange are critical for advancement.

Several signatories, including founders of AI companies and angel investors, have themselves removed non-compete clauses from their own employment contracts. This action reflects an internal commitment to fostering a more flexible labour market within the technology industry.

The development underscores an ongoing discussion about how UK legislation can better support the growth and global competitiveness of the technology sector, while also safeguarding employee rights and promoting innovation.