Government steps back on AI and copyright reform

The government has backed away from a controversial proposal that would have allowed AI companies to use copyrighted material by default, forcing creators to opt out.

That model was widely criticised as unworkable and unfair. For many in the creative industries, it raised concerns about why the burden sit with creators to protect their own work at scale.

Following sustained pressure, ministers have confirmed this is no longer their preferred approach. It is a shift in tone and a recognition that the original proposal risked undermining trust in how intellectual property is treated.

The original proposal

The initial model centred on an opt out system, where AI developers could train models on copyrighted works unless rights holders actively prevented it. In theory, this was intended to support innovation while still giving creators a degree of control.

In practice, it raised immediate concerns around enforcement, visibility and scale. Many questioned how individuals and smaller organisations could realistically track and manage the use of their work across vast datasets.

A reset rather than a resolution

The government is now considering a range of alternatives, including improved licensing frameworks, clearer labelling of AI generated content and stronger protections against misuse.

However, concerns remain. A possible research exemption could still allow AI developers to use copyrighted material during development, only negotiating with rights holders later. For many creators, that risks shifting value away from those producing the work in the first place.

What this means for the creative sector

The direction of travel is clear even if policy is not. Creative businesses are operating in an environment where intellectual property, technology and commercial value are becoming more closely linked. Decisions around how work is developed, used and monetised are increasingly complex.

For Gravita, supporting creative clients means helping them understand how their work generates value, how new technologies affect that value, and how investment in innovation is structured, using reliefs such as R&D credits.

We work with creative sector clients across these challenges, including where businesses are investing in new processes, tools and content that may fall within research and development activity.