Current uncertainty about how copyright law applies to AI is holding back creative and AI sectors in the UK from reaching their full potential, says Ryan Gracey, partner and head of technology at law firm Gordons.

Gracey says the uncertainty can make it difficult for creators to control or seek payment for the use of their work, and creates legal risks for AI firms, stifling AI investment, innovation, and adoption.

After previous attempts to agree a voluntary AI copyright code of practice proved unsuccessful, the government has now launched a new consultation to reform copyright law, addressing complex issues at the intersection of AI and IP law.

Gracey said: “This consultation, which launched in December 2024 and is open until February 25th, is the first step towards providing some clarity on copyright issues as AI continues to evolve. The proposals aim to align the UK’s approach with the EU’s regime, providing greater clarity on reserving rights and opting out of the TDM (Text and Data Mining) exception.

“The tech (AI) and creative sectors will be watching closely, in the hope that clarification will allow for greater development, investment and adoption.”

Key points from the consultation include:

𝟭. 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗧𝗗𝗠 𝗘𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻: The government proposes allowing text and data mining (𝗧𝗗𝗠) for commercial purposes, extending the current exception which only applies to non-commercial research. Rights holders can opt out, requiring a license for data mining their content.

𝟮. 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝗣𝗿𝗼𝘃𝗶𝘀𝗶𝗼𝗻𝘀: Robust transparency measures are essential. AI developers must disclose their training data sources to build trust and enable rights holders to enforce their rights.

𝟯. 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗔𝗜 𝗢𝘂𝘁𝗽𝘂𝘁𝘀: The government proposes eliminating the provision that computer-generated works without a human author are owned by the person who made the necessary arrangements. Input is sought on whether to maintain, alter, or eliminate this provision.

𝟰. 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 𝗳𝗼𝗿 𝗥𝗲𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗥𝗶𝗴𝗵𝘁𝘀: The consultation seeks views on various technical standards, such as robots.txt, metadata, and direct notification, to make it clear whether a rights holder has opted out of the TDM exception.