TDM and Training AI Models: UK Government Publishes Report and Impact Assessment on Copyright and AI
In the UK, a significant step has been taken towards understanding the relationship between copyright and AI following the release of a report by the UK Government on March 18, 2026. This report examines the use of copyright works in the development of AI systems, accompanied by an economic impact assessment.
However, it is important to note that the report does not modify existing laws or clarify the legality of AI training under UK copyright law. Instead, it stresses the need for balance and further evidence to guide future policy developments.
Government’s Position
The Government recognizes the dual importance of the UK’s creative industries and the potential for growth in AI. Nevertheless, it concludes that there is currently insufficient evidence to support immediate reforms to existing copyright laws. The report suggests that monitoring international developments and gathering more information are essential steps before any changes to the Copyright Designs and Patents Act 1988 (CDPA).
Background and Context
For years, copyright issues surrounding AI have been hotly debated in the UK. A primary concern is whether the existing exception for text and data mining (TDM) in section 29A of the CDPA should be maintained or amended. Options discussed include enhancing protections for copyright owners or for parties carrying out AI training.
A public consultation conducted from December 17, 2024, to February 25, 2025, sought to address these issues. Following the consultation, a progress statement was issued on December 15, 2025.
Key Issues and Legal Challenges
Stakeholders are eager for legal clarity on these matters. The case of Getty Images v. Stability AI has drawn significant attention, although many claims in that trial were dropped, and an appeal of the High Court’s November 4, 2025 judgment may take some time to be heard.
On March 6, 2026, the House of Lords Communications and Digital Committee released its report on AI, copyright, and the creative industries. This report advocates for a “licensing-first” approach, rejecting broad new TDM exceptions and advising against reforms that would weaken licensing incentives.
TDM Exception Options
The Government consulted on four options regarding the existing UK TDM exception:
- Do Nothing (Option 0): Maintain the current status quo.
- Strengthen Copyright (Option 1): Require licenses for all uses of copyright-protected works.
- Broad Exception (Option 2): Introduce a broad data mining exception without an opt-out option.
- Broad Exception with “Opt Out” (Option 3): Allow rights holders to reserve their rights with supporting transparency measures.
Due to insufficient evidence and opposition from the creative industries, the Government has not endorsed any specific option. It has also moved away from its initially preferred option of broad exceptions.
Transparency and Labelling
The report indicates strong support among stakeholders for increased transparency regarding the content and data used to develop AI systems. While no formal requirements are mandated, the Government plans to monitor international regulations and industry practices to inform future legislation.
There is also consensus on the need for labelling AI-generated content, although a clear approach has not yet been defined. The Government intends to work with industry experts to establish best practices in this area.
Licensing and Enforcement
The report highlights the evolving licensing markets in the UK and elsewhere. The Government does not plan to intervene at this stage but will monitor developments. It suggests that the Creative Content Exchange could play a role in testing commercial models for licensing certain datasets.
Additionally, the Government aims to collaborate with various sectors, law enforcement, and the judiciary to ensure effective and accessible routes for addressing copyright infringement in the context of AI.
Future Considerations
The Government remains open to legislative changes to the CDPA, contingent on clearer evidence and legal certainty. It will continue to engage with stakeholders and monitor global litigation, regulatory developments, and industry standards to refine its understanding of AI’s impact on the UK economy.
By publishing this report and impact assessment, the Government has fulfilled its statutory obligations under the DUAA. Any future actions regarding copyright and AI will depend on policy choices and stakeholder advocacy rather than legislative imperatives.
