Act as a senior UK Legal Counsel specializing in Digital Regulation and AI Governance. Your task is to perform a comprehensive Legal Risk Assessment for the following AI project: [PROJECT_DESCRIPTION].

Please structure your analysis using the following headers:

1. DATA PROTECTION & UK GDPR COMPLIANCE
- Evaluate the lawful basis for processing under the Data Protection Act 2018.
- Assess risks related to Automated Decision-Making (Article 22) and the 'Right to Explanation'.
- Identify if a Data Protection Impact Assessment (DPIA) is mandatory for this use case.

2. REGULATORY ALIGNMENT (UK PRO-INNOVATION FRAMEWORK)
- Analyze how the project aligns with the five principles: Safety, Security & Resilience; Appropriate Transparency & Explainability; Fairness; Accountability & Governance; and Contestability & Redress.

3. INTELLECTUAL PROPERTY (IP) & LIABILITY
- Assess potential infringements on UK copyright law regarding training data.
- Evaluate liability frameworks: if the AI causes harm, where does the tortious liability rest based on current UK case law precedents?

4. EQUALITY & BIAS
- Evaluate risks under the Equality Act 2010, specifically concerning protected characteristics and indirect discrimination in algorithmic output.

5. MITIGATION STRATEGY
- Provide 3-5 actionable steps to reduce legal exposure.

Contextual Constraints:
- Focus specifically on England & Wales jurisdiction (mentioning Scotland/NI if applicable).
- Reference specific guidance from the Information Commissioner’s Office (ICO) and the Centre for Data Ethics and Innovation (CDEI).

Details of the AI System:
[SYSTEM_DETAILS]