The intersection of copyright law and artificial intelligence (AI) has become one of the most debated policy areas in the UK and globally. As governments attempt to strike a balance between innovation and creator rights, the stakes are incredibly high for industries such as advertising, publishing, music, film, and technology.
On 20 March 2026, the Institute of Practitioners in Advertising (IPA) publicly responded to the UK Government’s long-awaited report on Copyright and Artificial Intelligence, offering a measured yet critical perspective on the future of creative rights in the AI era.
Understanding the Government Report on Copyright and AI
Before diving into the IPA’s response, it’s important to understand the context.
The UK Government released its official report and impact assessment on 18 March 2026, following a major consultation launched in 2024.
Why This Report Matters
Artificial intelligence systems—especially generative AI—depend on vast datasets, many of which include copyrighted materials such as:
- Books
- Music
- Films
- Articles
- Images
The central issue is simple but controversial:
👉 Should AI companies be allowed to use copyrighted works without permission?
Initially, the government proposed an “opt-out” model, where creators would need to actively prevent their work from being used. However, this idea faced strong backlash from creative industries, forcing a policy rethink.
Key Highlights of the Government’s Position
The March 2026 report signals a shift in tone and direction:
1. No Preferred Option (Policy Reset)
The government stepped back from its earlier stance, acknowledging that there is no single solution to the AI-copyright dilemma.
2. Rejection of the Opt-Out Model
The controversial opt-out approach—seen as favouring tech companies—has effectively been shelved.
3. Four Key Focus Areas Going Forward
- AI-generated content labelling
- Digital replicas and personality rights
- Transparency for AI training data
- Support for creators and SMEs
4. Continued Consultation
The government plans to gather more evidence before making final decisions, indicating that regulation is still evolving.
IPA’s Response: A Balanced but Critical View
The IPA, representing the UK’s advertising agencies, responded quickly after the report’s release.
Acknowledging Progress—but Highlighting Delays
Richard Lindsay, Director of Legal & Public Affairs at the IPA, acknowledged the complexity of the issue but expressed disappointment over delays:
- The consultation had been ongoing for over a year
- No definitive framework has yet been established
- Businesses still lack regulatory clarity
👉 This uncertainty affects advertising agencies, brands, and AI developers alike.
Support for Scrapping the Data Mining Exception
One of the most important points in the IPA’s response is its support for abandoning the proposed expansion of text and data mining (TDM) exceptions.
What Was the Concern?
The government had considered allowing AI companies to:
- Use copyrighted materials freely
- Without requiring licenses
- Unless rights holders opted out
This was widely criticised as unfair to creators.
IPA’s Position
The IPA agrees with the decision to shelve this approach, noting that:
- It would have triggered major backlash (which it did)
- It disproportionately benefited AI developers
- It risked undermining the creative economy
The “AI Copyright Conundrum”
Lindsay described the situation as an “AI/copyright conundrum”, highlighting the inherent tension:
| Creative Industry Needs | AI Industry Needs |
|---|---|
| Fair compensation | Large datasets |
| Copyright protection | Open access to data |
| Control over usage | Speed of innovation |
This tension lies at the heart of the debate—and explains why policymakers are struggling to find consensus.
Key Issues Identified by the IPA
The IPA’s response goes beyond criticism and highlights critical areas that will shape the future.
1. AI Content Labelling
The government is considering mandatory labelling of AI-generated content.
Why This Matters
- Prevents misinformation
- Ensures transparency in advertising
- Helps consumers distinguish human vs AI content
Impact on Advertising
For agencies, this could mean:
- New compliance requirements
- Changes in campaign disclosures
- Greater accountability in creative production
2. Digital Replicas and Personality Rights
Another major issue is the rise of digital replicas—AI-generated versions of real people.
Potential Risks
- Unauthorized use of likeness
- Deepfake advertising
- Loss of control over personal identity
Proposed Solution
The government is exploring a new “personality right” to protect performers.
The IPA flagged this as particularly relevant for:
- Influencer marketing
- Celebrity endorsements
- Brand campaigns
3. Future of Computer-Generated Works (CGW)
One of the most surprising aspects of the report is the potential removal of copyright protection for Computer Generated Works (CGW).
Background
Under UK law since 1988, CGWs have been protected even without a human author.
Why It’s Being Reconsidered
- The law predates modern AI
- It doesn’t align with current technology
- It creates legal ambiguity
IPA’s View
The IPA described this provision as an “oddity”, suggesting reform is overdue.
4. Ongoing Uncertainty
Perhaps the most important takeaway:
👉 Nothing is final yet
The government has:
- No preferred model
- No immediate legislative changes
- No clear timeline
This creates challenges for:
- Businesses planning AI investments
- Agencies using generative AI
- Creators protecting their work
Wider Industry Reaction
The IPA’s response aligns with broader industry sentiment.
Creative Industries: A “Major Victory”
Many groups welcomed the government’s retreat from the opt-out model.
- Artists and musicians praised the shift
- Industry bodies called it a win for creators
- Campaigns like #MakeItFair gained traction
Strong Backlash Against AI-Friendly Policies
High-profile figures like Elton John and others criticised earlier proposals, arguing they would:
- “Legalise theft” of creative work
- Undermine the creative economy
Ongoing Concerns
Despite progress, concerns remain:
- AI companies still need large datasets
- Copyright enforcement is difficult
- Transparency is lacking
Why This Matters for the Advertising Industry
The IPA’s involvement highlights how deeply this issue affects advertising.
1. AI is Already Transforming Advertising
Agencies are using AI for:
- Content generation
- Media planning
- Audience targeting
- Creative production
2. Legal Risks Are Increasing
Without clear rules, agencies face:
- Copyright infringement risks
- Liability for AI-generated content
- Compliance challenges
3. Opportunity vs Risk
AI offers:
✅ Faster content creation
✅ Lower costs
✅ Personalised campaigns
But also:
❌ Legal uncertainty
❌ Ethical concerns
❌ Reputational risks
The Bigger Picture: Innovation vs Protection
The UK government is trying to achieve two conflicting goals:
Goal 1: Become an AI Superpower
- Attract investment
- Encourage innovation
- Compete globally
Goal 2: Protect Creative Industries
- Safeguard jobs
- Ensure fair pay
- Maintain cultural output
Striking this balance is incredibly difficult—and explains the cautious approach.
What Happens Next?
The government has outlined several next steps:
1. Further Research
More evidence will be gathered on:
- Economic impact
- Legal frameworks
- Industry needs
2. Stakeholder Engagement
Consultation with:
- Creators
- Tech companies
- Agencies
- SMEs
3. Potential New Legislation
Future laws may address:
- AI transparency
- Licensing systems
- Rights enforcement
Expert Analysis: What This Means for the Future
Short-Term Outlook
- Continued uncertainty
- Increased debate
- Slow regulatory progress
Medium-Term Outlook
- Likely introduction of transparency rules
- Growth of licensing markets
- Stronger creator protections
Long-Term Outlook
- New copyright frameworks for AI
- Global standardisation
- Integration of AI into creative industries
Conclusion
The IPA’s response to the UK Government’s report on Copyright and Artificial Intelligence reflects a broader industry sentiment:
👉 Progress has been made—but major questions remain unanswered.
By supporting the rejection of the opt-out model while highlighting ongoing uncertainty, the IPA has positioned itself as a balanced voice advocating for both innovation and fairness.
As AI continues to reshape industries, the decisions made in the coming months will determine:
- How creators are protected
- How businesses operate
- How innovation evolves
One thing is certain:
The debate over AI and copyright is far from over—and its outcome will shape the future of creativity itself.
