The development of generative AI models like ChatGPT relies on training large datasets that typically include copyrighted materials, but whether using copyrighted data for training purposes constitutes copyright infringement is a hot topic of debate.

Under UK law, AI systems require a valid license for using protected works unless they are covered by specific exceptions, such as those for text and data mining (TDM) for non-commercial research under the Copyright, Designs, and Patents Act 1998.

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In 2022, the UK Intellectual Property Office (IPO) proposed to expand the scope of the exceptions to allow TDM for commercial purposes to support AI developers and tech innovation generally. This was in line with the Conservative government’s wider National AI strategy to make the UK “a global centre for AI innovation”. 

However, the proposals received severe backlash from creative industries and attracted parliamentary scrutiny. The House of Lords Communications and Digital Committee issued a report in January 2023, in which it stated that the IPO’s proposed changes “take insufficient account of the potential harm to the creative industries”. Plans to broaden the TDM exception were ultimately withdrawn in March 2023.

In May 2023, the UK government announced that it was planning for a code of practice on copyright and AI, in place of a legislative reform approach. The aim was to develop this code with a working group constituting trade bodies representing different industries.

Some of the stakeholders in this working group included BBC, Copyright Licensing Agency, and the British Copyright Council, Getty Images, Microsoft, OpenAI and StabilityAI. A code approach to regulating this area would be voluntary.

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The UK IPO’s working group approach, though well-intentioned in bringing varying perspectives together to find a solution, was ultimately abandoned. This was due to stakeholders being unable to reach a consensus on an effective voluntary code.

Creative industries have voiced frustration over exploitation

The creative sector argues that using copyright-protected content to train AI models, especially when those models compete with original works, constitutes copyright infringement unless a license is obtained from the rights holders. A major concern for content creators—like authors, visual content agencies, and other creative professionals—is that they are not compensated when their content is used to train AI models.

Tools like ChatGPT disrupt their business model by changing how people search for information. Instead of visiting websites through search engines, where traffic generates revenue from ads, users get direct answers within the AI platform. However, AI developers are against making licenses a requirement, claiming that would stifle technological development and innovation.

The UK saw its first court case related to copyright infringement in AI training and output when Getty Images, a leading provider of stock images, sued Stability AI, the creator of the AI image generator Stable Diffusion, for copyright infringement in the UK High Court in January 2023.

The case, now proceeding to trial, could be pivotal in determining whether AI companies can legally use copyrighted content for commercial purposes.

After the previous government failed to establish a code of practice, Labour, which took office in July 2024, is now expected to provide clarity on the matter. Labour’s Plan for the Arts, Culture, and Creative Industries emphasises that achieving the right balance of interests will require “thoughtful engagement and consultation” with both the creative industries and AI developers.

However; the plan also makes clear that Labour will “support, maintain, and promote the UK’s strong copyright regime,” ensuring that intellectual property rights remain a priority.