Government moves to ditch “deeply damaging” opt-out AI plan

The government had previously favoured controversial plans to allow AI businesses such as OpenAI to steal copyrighted works from UK creators, unless those creators explicitly opt out. This includes stealing music without seeking permission from or compensating music creators, writers and artists.

Liz Kendall, Secretary of State for Science, Innovation and Technology, published a report today on Copyright and AI, which is to be laid in Parliament. The report considers the use of copyright works in the development of AI systems.

Kendall recognised the importance of the creative industries in a statement today: “Our creative industries are the best in the world, and part of what makes us proud to be British. They are one of our greatest exports, connect us to one another, and help us to shape and define our national story.”

While recognising that AI is “the technological revolution of our times” and “a national strength”, Kendall proposes that the government’s approach to AI copyright will “protect the UK’s position as a creative powerhouse while unlocking the extraordinary potential of AI-driven innovation to grow the economy and improve British lives.”

She proposed three commitments: firstly, to “do what is right for the whole British economy”; secondly, to “help creatives control how their work is used” and “be paid fairly”; and thirdly to “ unlock the extraordinary potential of AI-driven innovation to grow the economy, and secure sovereign capability for the UK.”

Kendall confirmed that the plan is no longer the Government’s preferred option after an outcry from the industry, including music stars Sir Paul McCartney, Dua Lipa, Sir Elton John and many others. This can be seen as a major victory for UK Music and the thousands of campaigners from across the sector who opposed the change.

“At the end of 2024, the Government published a consultation on copyright and AI. At that stage, the Government’s preferred way forward was to enable AI developers to train on copyright works, but to give rightsholders the ability to opt out of this regime,” said Kendall. “This was overwhelmingly rejected by the vast majority of the creative industries. We have listened. This is why we can confirm today that the Government no longer has a preferred option.”

The Government's new plan for AI

Kendall has identified four areas where the government will be focusing the “next phase” of work on AI copyright.

The government is to launch a consultation into how to address the potential harm of digital replicas, which is the use of AI to replicate an individual’s likeness, either in audio or video.

Secondly, a task force is to be established to put forward proposals for the government on labelling AI-generated content.

The government is also going to publish a review of the mechanisms available for creators to control their works online, including standards, technical solutions and best practices on input strategy.

As well as this, they plan to launch a working group on independent and smaller creative organisations to explore whether there is a role for the government to support their ability to license their content.

In addition, the government has committed to establishing a Creative Content Exchange (CCE) as part of its Creative Industries sector plan. The CCE is intended to function as a trusted marketplace for digitised cultural and creative assets.

Tom Kiehl, chief executive at UK Music, welcomes the government’s decision to ditch the original plan on AI.

“We’re delighted the Government has scrapped what would have been a deeply damaging change to the use of copyrighted works,” said Kiehl. “We urge them to go further and rule out resurrecting this plan throughout their period in office. It remains vitally important that the Government does not now consider any kind of alternative copyright exception that would negatively impact creators and rightsholders in the music industry.”

“The 220,000 people in our sector which generates £8 billion for the UK economy should be entitled to work and earn a living without the constant fear that the fruits of their labour could effectively be taken by AI firms without payment or permission,” said Kiehl. “We support the Government’s decision to push the reset button on the debate on AI and copyright. This now gives us the opportunity to engage in a more detailed discussion with the Government about key issues such as digital replicas, transparency, labelling and independent creatives.

“We will be working with the Government and our UK Music members to set a concrete timeline for Government action on this reset and what it means for the developing AI market. Our key priority remains championing the UK music industry and helping it continue to grow and coexist with AI firms in a fair marketplace."