A seismic shift in global child safety regulations is creating a gold rush for AI-powered protection technologies. As the UK's Online Safety Act and the US Kids Online Safety Act reshape the digital landscape, companies from Yoti to HMD Global are racing to build AI systems that shield children from harmful content while tech giants scramble to comply with fines reaching 10% of global revenue.
The global regulatory crackdown on child safety online has unleashed an unprecedented wave of artificial intelligence innovation, as companies race to build technologies that can protect kids from digital harm while navigating a complex landscape of privacy concerns and compliance requirements.
At the center of this transformation sits the UK's Online Safety Act, legislation that imposes a legal duty of care on tech companies to shield children from age-inappropriate material, hate speech, bullying, fraud, and child sexual abuse material. The stakes couldn't be higher - companies face fines as steep as 10% of their global annual revenue for violations, creating an existential threat that's forcing even the biggest tech players to fundamentally rethink their approach to child safety.
The regulatory pressure is already reshaping how major platforms operate. Reddit, Spotify, and X have all implemented age assurance systems to prevent children from accessing sexually explicit or inappropriate materials, while Pornhub and other adult sites have begun blocking all users unless they complete age verification processes.
"There is a race on for child safety technology and service providers to earn trust and confidence," Pete Kenyon, a partner at law firm Cripps, told CNBC. "The new requirements have undoubtedly created a new marketplace and providers are scrambling to make their mark."
Leading this charge is Yoti, a British company whose AI-powered age verification technology has become the backbone of the industry's compliance efforts. The firm's system captures selfies and uses machine learning algorithms trained on millions of faces to estimate ages within two years of accuracy for 13 to 24-year-olds. Having previously partnered with the UK's Post Office, Yoti is positioning itself to capitalize on the broader push for government-issued digital ID cards across Britain.
But the innovation extends far beyond software solutions. Earlier this month, Finnish phone maker HMD Global launched the Fusion X1 smartphone, which uses AI developed by British cybersecurity firm SafeToNet to actively prevent children from filming, sharing, or viewing nude content across the device's camera, screen, and all applications. The launch comes amid growing momentum for the "smartphone-free" movement, as parents increasingly seek alternatives to traditional devices.
