UK businesses are being urged to tighten controls around their use of artificial intelligence in 2026, as legal experts warn that poorly governed AI systems are exposing companies to mounting legal, financial and reputational risks.
From unclear ownership of AI-generated content to data protection breaches and misleading outputs, advisers say many organisations have adopted AI tools faster than they have put safeguards in place, leaving them vulnerable as regulation accelerates.
Copyright and ownership disputes remain unresolved
One of the most pressing risks for businesses using generative AI is uncertainty around copyright and ownership of AI-generated outputs. Legal experts warn that AI tools can unintentionally reproduce copyrighted material, creating disputes over who owns, or is liable for, the content produced.
A high-profile example is the case of Getty Images versus Stability AI, which highlighted the legal grey areas surrounding AI training data. Getty alleged that its copyrighted images had been used without permission to train an image-generation model. While Getty’s main UK copyright claim did not succeed, the court found limited trademark infringement linked to early outputs that reproduced Getty watermarks, underlining the legal uncertainty businesses still face.
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