Government Releases Progress Report on Copyright and AI Consultation

In early 2025, the government consulted on changes to UK copyright law and AI, and in particular, the use of copyright works in the development of AI systems, and in relation to AI outputs. For more information on the consultation, see our article here.

In December 2025, the government released a Progress Statement, with the final report due to be released in March 2026. The progress statement confirms the breadth of engagement, particularly from the creative industries, but deliberately avoids any indication of the policy direction at this stage.

The consultation sought views on the options for reform, as follows:

• Option 0 – Do nothing. Copyright and related laws remain the same

• Option 1 – Strengthen copyright to require licensing of copyright works in all cases

• Option 2 – Apply a broad data mining exception

• Option 3 – Implement a data mining exception which allows rights holders to reserve their rights

The Government’s preferred option is the “opt out” approach (option 3).

Progress Statement

Over 11,500 responses were received from a range of different parties, including individual creators and rights holders, AI developers, academics, researchers, legal professionals and cultural organisations. 

Respondents from the technology sector favoured non-legislative or light-touch regulation, whereas the creative industries, which made up a large proportion of respondents, strongly advocated for licensing in all cases and were firmly opposed to the reserved-rights option. Across the board, respondents emphasised the need to avoid additional administrative or financial burdens.

The progress statement also confirms that dedicated working groups have been established to examine the practical implications of each reform option. These groups bring together stakeholders from the creative industries, technology sector and legal community to explore how potential changes could be implemented in practice and to ensure that any future framework balances the transformational benefits of AI innovation, with rights protection for creative industries.

The Final Report

The final report will be released by 18 March 2026, which will include an economic impact assessment for each option. Businesses in both the creative and technology sectors should watch closely as the debate moves towards the next stage. We will continue to monitor the progress of the consultation and will provide our commentary on the outcome once the report is published. 

This post was written by Holly Webb and Abigail Cropper. If you would like to discuss any of the issues raised in this article please contact Holly Webb or Emily Roberts. 

For the latest updates on AI law, regulation, and governance, see our AI blog at: AI: Burges Salmon blog (burges-salmon.com). 

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