The UK government has set out a revised strategy on the intersection of artificial intelligence and copyright, signaling a shift toward balancing the interests of creative industries with the rapid growth of AI technologies.

In a statement to Parliament, the government said it no longer favors a previously proposed model that would have allowed AI developers to train on copyrighted material with an opt-out option for rights holders. The approach had faced strong opposition from creative sectors.

Instead, officials said the next phase will focus on consultation and targeted policy development, emphasizing fairness for creators while supporting innovation. The government outlined three core priorities: ensuring economic benefits across both AI and creative industries, giving creators greater control over how their work is used, and unlocking AI-driven growth.

Artificial intelligence is described as a critical driver of future economic development, with the UK aiming to strengthen its position as a global AI leader while maintaining its status as a major creative economy.

Key policy areas

The government identified four areas for further action. These include addressing the risks of unauthorized “digital replicas,” developing standards for labeling AI-generated content, improving transparency and control mechanisms for creators, and supporting independent creatives in managing and licensing their work.

A new task force will be established to recommend best practices for identifying AI-generated content, with an interim report expected later this year. Additional consultations on digital replicas are planned for this summer.

The government also confirmed plans to develop a Creative Content Exchange, a marketplace for digital cultural assets, supported by public funding and early institutional participation.

Investment in AI growth

Alongside regulatory efforts, the UK is increasing investment in its AI sector. Measures include launching a £500 million Sovereign AI Unit, expanding funding for scale-ups, investing £1 billion in public supercomputing infrastructure, and introducing procurement initiatives for domestically produced computing hardware.