On 15 December 2025, the Department for Science, Innovation and Technology, working jointly with the Intellectual Property Office and the Department for Culture, Media and Sport, published a <a href="https://www.gov.uk/government/publications/copyright-and-artificial-intelligence-progress-report/copyright-and-artificial-intelligence-statement-of-progress-under-section-137-data-use-and-access-act" target="_blank" class="news-text_link">policy paper</a> of progress on copyright and AI. The statement was presented to Parliament pursuant to section 137 of the <span class="news-text_italic-underline">Data (Use and Access) Act 2025</span> and sets out preparatory work towards the statutory report and economic impact assessment required under sections 135 and 136 of the Act.
Under the Act, the Secretary of State must publish two documents by 18 March 2026. The first is an economic impact assessment evaluating policy options on copyright and AI and their effects on copyright owners and AI developers including individuals and micro, small and medium-sized enterprises.
The second is a substantive report on the use of copyright works in the development of AI systems. That report must consider technical measures, access to data including text and data mining, transparency obligations, licensing models and enforcement mechanisms including regulatory oversight. Both UK-based and overseas-developed AI systems must be considered.
The progress statement builds on a public consultation conducted between December 2024 and February 2025 on potential reforms to UK copyright law in the context of AI training and outputs. The consultation articulated three overarching objectives: enabling right holders to control and monetise use of their works; ensuring lawful and efficient access to data for AI developers; and improving transparency within the copyright framework.
Four policy options were consulted on, ranging from no legislative change to mandatory licensing and varying forms of text and data mining exceptions. The consultation also addressed issues relating to AI outputs including computer-generated works, labelling of generative AI content and emerging concerns such as digital replicas.
More than 11,500 responses were received from across the creative industries, technology sector, academia, cultural institutions and the legal profession. The government committed to manual review of all responses without the use of AI tools. An IPO-led taskforce analysed responses thematically, identifying patterns of support and opposition across different policy combinations.
The analysis revealed strong support among respondents for mandatory licensing and statutory transparency measures, particularly from the creative industries. Responses from AI developers were more mixed, with greater support for data mining exceptions combined with rights reservation or lighter-touch regulatory approaches. The government noted that preferences varied significantly by sector and that many respondents emphasised the need to avoid disproportionate administrative or financial burdens.
Alongside the consultation, the government has undertaken extensive stakeholder engagement. Ministerial roundtables were convened with representatives from the creative, media, AI and academic communities, followed by detailed engagement by officials.
Four expert working groups were established focusing on technical control measures and standards, transparency and information disclosure, licensing frameworks and broader support for the creative industries. Collectively involving more than 50 experts, these groups are contributing technical insights and practical perspectives to inform policy development. Their work will be reflected in the forthcoming statutory report.
In parallel, a cross-party parliamentary working group has been convened to ensure ongoing dialogue with Members of Parliament and Peers. Discussions have focused on transparency, licensing, creator remuneration, technical feasibility and the UK’s international competitiveness. The government is also monitoring related parliamentary inquiries including work by the House of Lords Communications and Digital Committee.
Preparatory work has begun on the economic impact assessment drawing on consultation evidence, market data, academic research and comparative developments in other jurisdictions including the EU. The forthcoming report on the use of copyright works in AI development will provide a detailed account of consultation responses and address each statutory issue set out in the Act.
The government has reiterated its commitment to supporting the UK’s creative industries while enabling the responsible development of AI as a driver of economic growth. The final report and economic impact assessment will be laid before Parliament by 18 March 2026 and will set the direction for future policy and legislative decisions in this area.
