Is the government doing enough to protect the rights of homeowners in the age of smart tech? Camilla Winlo, Global Head of Data Protection, Talan, investigates.
Smart home technologies are rapidly moving from nice-to-have gadgets, to core infrastructure for the net zero home.
Heat pumps, smart thermostats and connected appliances can now respond to grid conditions and real-time prices, lowering household bills, cutting carbon emissions, and improving grid resilience.
But at a time of increased media scrutiny around AI and concerns surrounding the adequacy of existing regulation to uphold data privacy, the success of this rollout depends on something less visible than the latest new devices.
It requires governance frameworks and regulation that improve consumer trust in AI and new technologies. The potential is enormous, and the good news is that the frameworks needed to unlock it responsibly are already taking shape.
AI and smart home technology
Smart technologies promise a lot. But unless households suddenly develop a deep passion for monitoring energy prices and timing their laundry cycles, we are going to need AI to do the heavy lifting. AI already has a substantial role across the energy sector. Ofgem has identified 30 AI-powered projects across the system, including energy planning, load management, predictive maintenance, anomaly detection and consumer profiling.
AI is particularly powerful at analysing large data sets and making decisions by spotting patterns that humans may miss. These capabilities could help the UK achieve its net-zero commitments and enable bill payers to make better choices to reduce their bills. They could also support energy networks to run more efficiently, reducing the likelihood and impact of power outages.
However, as noted in the Smart Energy Code and AI Report, this new technology also introduces new risks. Poorly configured AI tools could misinterpret data or create unfair outcomes while AI-powered cyberattacks, including spoofed consumption data or more convincing phishing attempts, could leave households vulnerable to greater cybersecurity risks.
There are also ethical risks, where benefits concentrate among people who can afford newer technologies or who live in properties where smart meters function reliably. According to the latest data from the Department of Energy Security and Net Zero, around 3.35 million smart meters are still not operating in smart mode.
AI governance in the energy sector
The energy sector is one of the most highly regulated parts of the UK economy. Beyond Ofgem, who recently published guidance on AI in the sector, there are dozens of specialist codes and organisations quietly making sure the system works as intended, from Elexon and the Retail Energy Code to the Heat Networks Technical Advisory Standard and Smart Energy Code (SEC).
The SEC alone ensures that smart metering data remains accurate, protected from cyberattacks and is not used in ways people would not expect. Alongside these bodies are organisations such as TechUK and Citizens Advice, which scrutinise proposals, challenge assumptions and help shape policy so that the consumer perspective is not forgotten. It is a huge ecosystem of expertise and oversight.
But because most of it is invisible to the public, it can look like nothing is happening. And when people cannot see the governance, they understandably wonder whether it exists at all which undermines trust and adoption.
This is where government initiatives such as the Consumer Consent Solution and the Smart Data Energy programme, including the proposed Smart Meter Energy Data Repository (SEDR), become important.
SEDR, for example, would create a single repository of smart meter data that can be more easily consulted, enabling AI analysis at scale. These initiatives create a bridge between policy ambition and everyday reality. They do not ask people to become energy experts. They simply ask people to benefit from tools that work well, make sense and are governed in a way that earns their confidence.
Is government doing enough?
In many areas of digital life, especially around the deployment of AI and smart data, big tech companies set the pace. But in the energy sector, the picture is different. Here, no single company has the freedom to reshape the system alone.
The combination of regulatory codes, specialist bodies and consumer advocacy organisations creates a structure where accountability is built in. So, is government doing enough? The direction of travel suggests yes. The focus on smart data, the development of consent mechanisms and Ofgem’s work on AI guidance all point towards a system that is becoming more open and more transparent without creating the burdensome regulatory barriers that can prevent innovation.
The real opportunity now lies in visibility. The governance is there but not always seen by consumers. Making the safeguards more visible will be key to building the trust that smart homes depend on.
The latest polling from YouGov finds that 52% of Britons say limiting who has access to their data is very important to them, while the Government’s own research suggests that only 38% of the population trusts the Government with their data.
As AI-enabled optimisation becomes more common, people will demand more clarity about what the technology is doing, how their data is used and protected, and what rights they have.
If we get that right, the sector can demonstrate that regulation and innovation are not at odds, but are working together to create an environment where new technologies can deliver real benefits for industry and consumers.
