The UK House of Lords Communications and Digital Committee has called for withdrawal of a 2024 recommendation that the UK make exceptions to copyright protection, “to enable AI developers to train on copyright works, but to give rightsholders the ability to opt-out of this regime.”
In December 2024, the UK Intellectual Property Office had proposed changes to existing UK copyright law that would permit AI platforms to permit data mining from copyrighted works without licenses. In its proposal, it noted that “There is debate about whether (the) balance within copyright law relating to the outputs of AI is right, between the traditional creator, the level of human input AI software might have, and the right holders in such works.”
The debate was joined by input from creatives, AI firms, industry bodies, unions, academics, and musicians including Elton John and Paul McCartney; that such exemptions should not exist. Conversely, OpenAI and Google reportedly objected that the recommended exceptions were not broad enough.
UK Work Program
Four areas of focus were identified for the next phase of this work (quoted from the Statement):
- Digital Replicas. ‘Digital replicas’ can be a powerful tool, including for the creative industries. However, when someone’s likeness is replicated without their permission it can be harmful. We will launch a consultation in the summer to seek views on how we address these harms, while protecting legitimate innovation.
- Labelling AI-generated content. It can be helpful to consumers to understand whether content has been made using AI. It may also help protect against disinformation and harmful deepfakes. We will establish a taskforce to put forward proposals for government on best practice for labelling AI-generated content, with an interim report to be published in autumn.
- Creator control and transparency. We will publish a review of the mechanisms available for creators to control their works online. This will include standards, technical solutions and best practice on input transparency. This review will inform where there are gaps and whether there is an appropriate role for government in addressing them.
- Independent creatives. We will launch a working group on independent and smaller creative organisations to explore whether there is a role for government to support their ability to license their content.
The process going forward
The UK Government’s commitment to the UK’s AI sector has been set out as follows (quoted from the Statement):
- In April, we will launch the new Sovereign AI Unit, backed by £500m to build new UK AI businesses.
- We are backing workers who want to move firms by placing limits on the use of non-compete clauses which stifle innovation and dynamism.
- We have reformed the mandate of the British Business Bank and put £5 billion behind scale-ups.
- We are running a new Advanced Market Commitment, pledging to procure up to £100m of new computing hardware produced by UK firms.
- We are putting £1bn into publicly owned supercomputers which our researchers – whether they are in academia or in SMEs – can use for free for AI work. That is a leg up to some of our brightest and best who want to use these tools.
- The Chancellor will convene top CEOs this summer for an AI Adoption Summit, bringing together leading tech firms with companies ready to adopt and scale AI to grow their businesses.
Content Exchange
In addition to the March 2026 policy statement, the UK Government has committed to establishing a Creative Content Exchange (CCE) as set out in its Creative Industries Sector Plan. The intention is for the CCE to be a trusted marketplace for digitised cultural and creative assets. The CCE is supported by funding from UKRI and is sponsored by DCMS. A pilot phase has been launched with a group of public institutions as early adopters.
Why it matters
“(The UK is) not the only government facing this challenge. The United States, European Union, Australia, India, and many other governments are trying to find a way through,” said Liz Kendall, Secretary of State for Science, Innovation and Technology. Labour.
“As the recent Lords Communications and Digital Committee report on AI, copyright and the creative industries recognised, it will take time to get this right. We will do so in a way that is in line with our own interests and values,” said Ms. Kendall.
The concept of a Content Exchange might, at first glance, seem to be out of place as a government initiative. But on reflection, such an exchange could be co-opted by commercial interests. Perhaps an independent organization could be an answer and worthy of consideration.
Further reading
Copyright and AI Progress. Statement made on 18 March 2026. Statement UIN HCWS1416. Policy statement. March 18, 2026. Liz Kendall, Secretary of State for Science, Innovation and Technology. Labour. UK Parliament
Labour ditched plan to let AI firms use copyrighted works. Article. March 16, 2026. by Mark Sellman. The Times (London)
Should the UK open copyrighted works to unlicensed data mining, to train AI platforms? Article. Jun3 6, 2025. by Steven Hawley. Piracy Monitor
