The UK Government has published a March 2026 Report on Copyright and Artificial Intelligence following its consultation on copyright and artificial intelligence in December 2025, which received a wealth of responses from creators and rightsholders, academics, researchers, legal professionals and AI developers alike.

Abandoning the Opt-Out Exception

In its Statement of Progress published on 15 December 2025, the UK Government identified various options to deal with the issue of the use of copyright works in the development of AI systems, with its preferred option being a broad data mining exception with an opt-out option that would allow AI companies to use copyrighted works to train their models.

However, they have now taken a U-turn after receiving a significant backlash.  Many from the creative industries in particular were concerned that a broad exception would undermine the value of their work, and that an opt-out would be impractical.  Sir Elton John and Dua Lipa in particular were vocal in their disagreement with the UK Government's proposal.

What Happens Now?

The UK Government has said that they "must take the time needed to get this right" and that they will not introduce reforms to copyright law until they are confident that they will meet their objectives for the economy and UK citizens. 

The upshot is that a broad data mining exception with the option to opt-out is no longer their preferred approach.  However, there is no clear conclusion in what will come next, with the UK Government instead stating:

"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".

It is clear that there is a tension between creative rightsholders on the one hand and AI tech developers on the other.  Andrea Czapary Martin, CEO of PRS for Music said:

"We welcome the Government's decision not to proceed with previous plans to weaken copyright law for the sole benefit of US tech giants.  This announcement is a crucial step in supporting responsible innovation and British businesses".

It remains to be seen how this will play out, with no clear solution currently in sight.  Striking a balance between AI innovation and the interests of rightsholders is no easy feat.  Watch this space for more.

For the full analysis of the government update, read our detailed blog post here.