AI is moving fast, the law isn’t – what does that mean for copyright?

The UK Government has stepped back from its earlier preferred position in respect of regulating the relationship between AI and copyright. In a 2024 copyright consultation, it backed an opt-out model that would have allowed AI developers to use works protected by copyright for training unless copyright owners actively opted out. 

In a written statement to Parliament on 18 March 2026, the Government confirmed that the approach had been ‘overwhelmingly rejected by the creative industries’ and said it no longer has a preferred option. It will now focus on areas including creator control, transparency, labelling AI-generated content and the proposed Creative Content Exchange. It has also said it will not reform copyright law until it is confident any changes will work. 

Why this matters for your business

Businesses that create original content may welcome the move away from an opt-out system that many saw as unrealistic to monitor or enforce. But the lack of a position leaves many SMEs to make decisions about licensing, marketing content, training data and AI use without a clear and certain long-term framework. That creates risk for businesses on both sides, whether they are protecting their own IP rights or using AI tools in day-to-day operations. 

Senior Contentious Intellectual Property Solicitor, Gosia Evans, says:

The statement made by the Secretary of State confirms the Government's departure from its original preferred position of creating an ‘opt out system’ whereby copyright owners would have the right to opt out from their works being used for AI training. From the outset, my view has been that this option would be impractical and that it would not offer adequate protection to copyright owners. This is a welcome statement in that regard, and it indicates the Government has recognised the significant concerns rightly expressed by the creative sector. 

However, we need the Government to take decisive steps in the context of regulating AI and copyright. This is long overdue. The consultation was launched in 2024. We are a quarter into 2026; the rapid development of AI has been causing multiple practical problems for our clients and us as their legal advisers for a while. The current inadequate legal landscape is already leaving copyright owners at risk. The Government simply cannot sit on the fence any longer, but it seems – based on the latest Statement – that no significant changes will be taking place anytime soon. 

The Creative Content Exchange (CCE) proposal, if executed well, could address some of the concerns of copyright owners, however those practical solutions must be urgently prioritised.

Practical steps to take now

This is a sensible moment to review where valuable IP sits in your business, check contracts and platform terms, and put clear guardrails around staff use of generative AI. Businesses that create or license content, rely heavily on brand assets or are building AI into their software code, products or services should take advice early. The law may not have evolved as swiftly as we wished for yet, and it may not be possible to confidently assess the legal position, particularly in the context of copyright and AI, in all circumstances. However, the commercial risks are already here, and it is important for you to be aware of the IP assets you own, their protection and potential pitfalls associated with your use of AI. 

If your business is producing original content, creative assets or other valuable IP, it is worth taking advice now on how best to protect it. Our intellectual property lawyers can help you review ownership, strengthen contractual protections and reduce the risk of your rights being undermined as the AI landscape continues to evolve. 

And for more expert insight from Gosia, check out our video on Copyright in the age of AI: who owns what?