The UK Government has published its Report and Impact Assessment on Copyright and Artificial Intelligence, marking a significant policy reversal that sees it abandon a previously preferred broad copyright exception for AI training on copyrighted works.
Published by the Department for Science, Innovation and Technology, the Department for Culture, Media and Sport, and the Intellectual Property Office on 18 March 2026, the 123-page report concludes that the government will not introduce copyright reform until confident that any changes will meet its objectives for the economy and UK citizens.
Key Findings
The government assessed three main policy options: maintaining current law with no broad text and data mining exception; a limited TDM exception with safeguards; and a broad commercial AI training exception with an opt-out mechanism. The third option, which had been the government's preferred approach, has now been formally rejected following overwhelming opposition from the creative industries.
High-profile creative figures including Paul McCartney, Elton John, Coldplay, Richard Curtis, Antony Gormley, and Ian McKellen had vocally opposed the opt-out approach, arguing that it would amount to widespread unlicensed use of protected works with limited transparency from AI developers.
Computer-Generated Works
The government proposes repealing Section 9(3) of the Copyright, Designs and Patents Act, which currently grants copyright protection to computer-generated works created entirely by computer with no human author. The government notes this provision is not present in any other jurisdiction's copyright laws. However, copyright protection would continue for works created with AI assistance rather than entirely by AI.
Digital Replicas and Labelling
The report identifies support for enhanced protections for a person's image and voice against unauthorised AI-generated replicas, with a consultation expected in summer 2026. A taskforce will also develop best practice recommendations for labelling AI-generated content, with an interim report due in autumn 2026.
What It Means for the Industry
For AI companies, the report provides no immediate clarity on the future regulatory framework. The government has not mandated an opt-out exception, meaning AI companies cannot assume they have broad rights to train on copyrighted material. For content creators, the government's reversal signals recognition of their rights to control use of their works in AI training, though no legislative protections have yet been enacted.
The report marks a licensing-first approach rather than a statutory exemption model. The government is supporting the Creative Content Exchange, which will test commercial models for licensing AI training, with an operational pilot platform expected by summer 2026.
