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by Kirsteen Paterson
18 March 2026
AI copyright opt-out scrapped as UK Government seeks more time for reform

UK Government minister Liz Kendall | Alamy

AI copyright opt-out scrapped as UK Government seeks more time for reform

The UK Government “no longer has a preferred option” on copyright and AI, it has emerged.

Writers and artists asked the Labour administration to do more to protect their works from being used to train AI models without permission.

Technology secretary Liz Kendall has today said the government has “engaged extensively” and will no longer stick with its previous position, which favoured allowing AI developers to train their models on copyrighted materials, with an opt-out.

However, it “no longer has a preferred option” on what to do following critical feedback in a consultation.

Meanwhile, it could mandate labels on AI-generated content to “protect against disinformation and harmful deepfakes”, and has said it will “monitor” international developments on the matter.

A report from the Department for Science, Innovation and Technology and the Department for Culture, Media and Sport states: “In light of the strong views from the consultation, the gaps in evidence and the rapidly evolving AI sector and international context, a broad copyright exception with opt-out is no longer the government’s preferred way forward.

“We propose to gather further evidence on how copyright laws are impacting the development and deployment of AI across the economy. We will consider and engage stakeholders on other potential policy approaches. We will also continue to monitor developments in technology, litigation, international approaches, and the licensing market.”

The government said it is working to balance the interests of the creative and tech sectors.

Kendall said: “We will help creatives ​control how ⁠their work is used. This sits at the heart of our ambition for creatives – including independent and smaller creative organisations – to be paid fairly.”

On reforming the rules around AI and copyright, the report said: “We must take the time needed to get this right.

“We will not introduce reforms to copyright law until we are confident that they will meet our objectives for the economy and UK citizens. This means protecting the UK’s position as a creative powerhouse, while unlocking the extraordinary potential of AI to grow the economy and improve lives.

“Any reform must ensure that right holders can be fairly rewarded for the economic value their work creates, and that they are protected against unlawful and unfair use of their work. It must also ensure that AI developers can access high quality content. It is clear through the consultation and our subsequent engagement that there is no consensus on how these objectives should be achieved.”

However, no timeline has been set for this.

The development comes after Chancellor Rachel Reeves identified a “step change” in AI as one of the government’s three priorities for encouraging economic growth.

It is hoped that the UK will achieve “the fastest AI adoption in the G7”, Reeves said.

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