The UK government has launched a consultation on introducing an opt-out copyright regime for AI training data, a move that could have significant implications for the creative industry. The proposed regime would require rights holders to take active steps to protect their intellectual property, or risk it being used as free training fodder for AI models.

The rise of generative AI models has brought intellectual property concerns to the forefront, with many creatives expressing concerns that their work is being used without permission or compensation to train AI technologies that can produce competing output. The visual arts, music, film production, and video games are all potential targets for generative AI, which replaces traditional production processes with scalable AI tools.

Deals are being struck between AI companies and rights holders to license content for training data, while lawsuits are being filed to challenge unlicensed use of IP for AI training. The situation demands legal clarity, and the UK government hopes this consultation will help deliver that. Future policymaking could include legislation to provide legal certainty, although the government has yet to decide on that.

Ministers are seeking to balance the interests of the creative sector and the AI industry, but the proposed opt-out regime appears to favor the latter. The government claims it wants to support the creative sector, but the approach could disproportionately disadvantage smaller creatives compared to larger rights holders. AI companies, on the other hand, have been actively lobbying for an opt-out regime.

The government's proposal includes a mechanism for rights holders to reserve their rights, enabling them to license and be paid for the use of their work in AI training. An exception would also be made to support the use of a wide range of material by AI developers where rights have not been reserved. The government claims this approach would balance the interests of rights holders and AI developers, but critics argue it could ultimately favor the AI industry.

The government's key objectives for both the creative and AI industries include promoting greater trust and transparency between the sectors. However, achieving this will require careful balancing of the interests of both parties. The government acknowledges that greater transparency from AI developers is a prerequisite for the approach to work, and is seeking views on how to deliver this.

The development of simple technical means for creators to exercise their rights is also seen as necessary for an opt-out regime to work. This will require collaboration between AI companies and the creative industries to create new technical systems. The consultation runs for 10 weeks, closing on February 25, 2025, and the government is encouraging anyone with an interest in the issue to share their views and provide evidence.

The UK government's response to the rapidly evolving AI landscape must adapt to address the concerns of both the creative and AI industries. As the consultation period progresses, it remains to be seen whether the government can strike a balance that satisfies both parties, or if the interests of one sector will ultimately take precedence over the other.