The UK government has stepped back from one of its most controversial proposals on artificial intelligence and copyright, signalling a decisive shift towards market-led licensing and greater transparency rather than sweeping legal reform.
In its long-awaited Report on Copyright and Artificial Intelligence, published in March 2026, ministers confirm they will no longer pursue a broad copyright exception for AI training with an opt-out mechanism — a policy that had triggered fierce opposition from across the UK’s creative industries.
Instead, the government is opting for a more cautious, evidence-led approach, prioritising transparency obligations and allowing a nascent but rapidly expanding licensing market to develop. The move marks a significant recalibration of policy at a time when the UK is seeking to position itself as both an AI superpower and a global creative hub.
At the heart of the report is a clear admission: the government’s preferred option, allowing AI developers to use copyrighted material unless rightsholders explicitly opted out, failed to win support.
The consultation attracted more than 11,500 responses, with the overwhelming majority of creators, publishers and rights organisations rejecting the proposal outright.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
