The government has published a formal statement of progress on its forthcoming reforms to copyright and artificial intelligence, confirming that detailed proposals and an economic impact assessment will be laid before Parliament by 18 March 2026, as required under the Data (Use and Access) Act 2025.
The update, issued jointly by the Department for Science, Innovation and Technology (DSIT), the Intellectual Property Office (IPO) and the Department for Culture, Media and Sport (DCMS), outlines the work undertaken so far on one of the most contested areas of digital policy: the use of copyright‑protected works in the training and operation of AI systems.
The government received more than 11,500 responses to its consultation on copyright and AI, which ran from December 2024 to February 2025. Of these, 88% of respondents supported Option 1 - a requirement for AI developers to obtain licences for all uses of copyrighted material.
Just 3% backed the government’s previously preferred approach (Option 3), which would introduce a text‑and‑data‑mining exception with a rights‑reservation mechanism. A further 0.5% supported a broad exception without reservation rights.
The consultation found a clear divide between sectors. Those from the creative industries overwhelmingly favoured mandatory licensing and statutory transparency duties. while technology companies and AI developers tended to support Options 2 and 3, and argued for lighter‑touch transparency requirements.
The IPO assembled a team of around 80 policy officials and analysts to manually review every response, after ministers promised that no AI tools would be used in the analysis.
To support policy development, DSIT and DCMS have convened four expert working groups to examine issues such as the feasibility of technical tools to control content use , potential legal duties on AI developers to disclose training data, improvements to licensing mechanisms, particularly for smaller creators and additional protections for creative sectors
Formed of more than 50 stakeholders, including representatives from publishing, music, film, visual arts, videogames, collective management organisations, academia and AI developers, these working groups are:
• Control and technical standards
• Information and transparency
• Licensing frameworks
• Wider support for creatives
A cross‑party Parliamentary working group has also been established, with meetings held in October and November. MPs and peers raised concerns about transparency, remuneration, enforceability and the UK’s competitive position.
The government is also working on the statutory Economic Impact Assessment, which must evaluate the costs and benefits of each policy option for copyright owners and AI developers, including SMEs and individual creators.
The assessment will draw on consultation evidence, market data, emerging research and developments in other jurisdictions, including the EU’s evolving AI and copyright framework.
The government emphasised that AI remains “the most powerful lever” for economic growth, while the creative industries are “one of this country’s greatest strengths”. The final report, it said, will need to balance access to data for AI innovation with meaningful protections for rights holders.
The full report and impact assessment will be published ahead of the statutory deadline of 18 March 2026.
