Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Government departments will look at cutting budgets to fund defence, minister says

      Getty Images collection showcasing diverse business professionals in a collaborative office environment, emphasizing teamw...

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Can football conquer the US? Why culture is key this World Cup

      GettyImages 2281127577 featuring a significant news event or business setting, capturing key moments and interactions

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      The best places to eat sandwiches in Lisbon, from bifanas to pregos

      Bifana do Afonsos famous bifana sandwich showcasing tender pork in a freshly baked roll with savory sauce.

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Wednesday 18 March 2026 1:52 pm

Government drops AI copyright opt-out plan after industry backlash

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
Work and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system
Kendall said the UK needed a "decisive shift"

The government has scrapped its preferred proposal to allow AI firms to train on copyrighted material by default, as it shifts its approach after sustained opposition from the UK’s creative sector.

In a report published on Tuesday morning, ministers confirmed they are U-turning from the proposed ‘opt-out’ model, which would have allowed developers to use copyrighted works unless rights holders actively blocked access.

It will instead revisit the issue without a single preferred option.

The decision follows moths of cumulative criticism from artists and media groups, who have long argued the model would weaken copyright protections and undermine the commercial foundations of the UK’s £146bn creative sector.

Announcing the change, tech secretary Liz Kendall said the government had “listened” to concerns and would take more time to find a workable framework.

“At the end of 2024, the government’s preferred way forward was to enable AI developers to train on copyrighted works, with an opt-out for rightsholders”, she said.

“This was overwhelmingly rejected, we can confirm that the government no longer has a preferred option”.

The reset brings the public sector closer to the position initially set out by the House of Lords Communications and Digital Committee, which warned earlier this week against introducing a sweeping copyright exemption and instead backed a licensing-first approach.

Peers argued there was “no sound basis” for weakening copyright protections through opt-out means, and called for stronger transparency requirements so creators can see how their work is being used in AI training.

AI growth vs creator rights

Ministers have been clear they do not want to choose between supporting a fast-growing AI sector or protecting industries that supply much of the data such systems rely on.

“The UK must be an AI maker, not an AI taker,” Kendall said, while insisting creative industries remain “one of our greatest exports” and central to the government’s industrial strategy.

Read more

Google to teach small publishers how to use AI amid copyright row

AI copyright laws

The report sets out a series of next steps rather than a definitive policy, including work on labelling AI-generated content, improving transparency over training data, and exploring how creators can better control the use of their work online.

A consultation on so-called ‘digital replicas’, where AI mimics a person’s likeness or style, is also expected later this year.

The government will also continue developing a Creative Content Exchange, intended as a marketplace for licensing digital content, though details remain limited.

For AI firms and startups, the lack of a clear framework leaves some uncertainty.

Vinous Ali, deputy executive director of Startup Coalition, said: “It is disappointing that a more concrete way forward hasn’t yet been found. However, we commend the government’s determination to get this right.”

He added: “It is critical we find a workable solution that allows our AI startups to go toe to toe with competitors operating in more enabling environments.”

That point reflects a broader concern in the sector that regulatory ambiguity could slow progress, particularly as other jurisdictions move ahead with clearer, if still contested, rules.

The US, EU and Japan have all taken different approaches to text and data mining, with varying degrees of flexibility for AI developers.

The UK’s decision to step back from its initial proposal risks extending that period of uncertainty, even as ministers position the country as a global AI hub.

And att the same time, pressure from the creative industries has intensified.

A coalition of major publishers including the BBC, Financial Times and Guardian recently warned that AI systems are already using journalism as training data without permission or payment, calling for clearer standards and enforcement.

Read more

Copyright isn’t dead in the age of AI, it’s key to growing UK creative industries

Harry Stykes attending a public event, dressed in a stylish suit, addressing an audience, engaging with fans and media.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • AI
  • artifical intelligence
  • copyright
  • creative sector
  • DSIT
  • Liz Kendall
  • tech
  • UK tech

Trending Articles

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

  • Inflation expectations at record high in interest rates signal

  • London Tech Week sums up everything wrong with UK tech

  • KPMG report on AI found riddled with AI hallucinations

  • UK economy falters as deeper damage to growth to come

More from CityAM

  • Google to teach small publishers how to use AI amid copyright row

    Media
    AI copyright laws
  • Copyright isn’t dead in the age of AI, it’s key to growing UK creative industries

    Opinion
    Harry Stykes attending a public event, dressed in a stylish suit, addressing an audience, engaging with fans and media.
  • Starmer’s Europe reset risks strangling UK AI sector with EU regulation

    Tech
    Keir Starmer
  • The AI Summit London turns 10 as businesses move past the AI hype cycle

    Partner
    Neil Lawrence at DeepMind office discussing AI innovations and advancements in a professional setting
  • Trump ban on AI access to foreign users forces Anthropic to suspend models

    Tech
    Donald Trump has threatened to sue the BBC for $1bn
  • Financial services contributed a tenth of UK economic output in 2025 

    Economics
    Skyline of Canada financial district with modern skyscrapers and historic landmarks under a clear blue sky
  • Britain’s first sovereign AI model secures blue-chip backing as Starmer unveils £400m plan

    Tech
    Prime Minister Keir Starmer addressing media at a press conference podium, discussing current governmental policies and in...
  • Deloitte UK appoints first chief AI officer in drive for ‘AI-enabled’ services

    Big Four
    Deloitte Australia under the scope over a report it made for the Government that had AI errors
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited