The UK Labour government’s ambitious plans for artificial intelligence hit an early setback on Tuesday (January 28) as it suffered a parliamentary defeat over AI copyright reforms.
The development came just weeks after Prime Minister Keir Starmer’s government received a report proposing a sweeping national AI strategy.
On Tuesday evening, the House of Lords — which has the final say on the passage of bills after they’ve been voted on in the House of Commons — voted 145 to 126 in favor of amendments to the Data (Use and Access) Bill, aimed at strengthening copyright protections with respect to AI companies.
The reforms were championed by digital rights campaigner and crossbench (independent) peer Baroness Kidron, and backed by the Creative Rights In AI Coalition.
“It surely goes without saying that our United Kingdom copyright law has to counter the increasing theft of intellectual property by artificial intelligence companies,” Baron Berkeley of Knighton said during Tuesday’s hearing.
Baroness Kidron, who is an advisor to the Institute of Ethics in AI at Oxford University, said her proposed measures would determine “when, where and how IP is taken and, crucially, allow creators to understand what has been taken so that they can seek redress.”
“there is an opportunity of growth in the combination of AI and creative industries. But this forced marriage, on slave terms, is not it.”
Baroness Kidron, UK House of Lords
“This is not new, burdensome regulation—and it is certainly less regulation than the incredibly complex, costly, and ultimately unworkable opt-outs or rights reservation mechanism of the preferred option of the consultation,” she said.
Baroness Kidron added: “There is a role in our economy for AI, there is a role in our economy for companies headquartered elsewhere, there is a role in our economy for new AI models, and there is an opportunity of growth in the combination of AI and creative industries. But this forced marriage, on slave terms, is not it.”
The defeat comes at a crucial time for Labour’s AI agenda. Just two weeks ago, Starmer announced an AI action plan, pledging to “unleash AI’s potential” across the UK to deliver what he called “a decade of national renewal.”
The plan includes all 50 recommendations from tech entrepreneur Matt Clifford’s AI Opportunities Action Plan report. Clifford has also been appointed as advisor to the PM on AI opportunities, with Nobel Prize-winner Sir Demis Hassabis also providing expertise to the government “to help the UK seize the opportunities of AI.”
The government has already secured £14 billion (approx. USD $17.4 billion at current exchange rates) in commitments from major tech companies, including Vantage Data Centres, Nscale, and Kyndryl. The government’s plan also promises to create over 13,000 jobs across the country. This follows £25 billion in AI investments announced at the International Investment Summit.
“What’s astonishing is that [Baroness Kidron’s] amendments passed despite Labour reportedly being whipped to vote against them, and the Conservatives largely abstaining.”
Ed Newton-Rex, Fairly Trained
While the plan seeks to make copyright law in the UK more AI-friendly, it has raised concerns among some copyright owners and ethical AI advocates.
“The recommendation to reform copyright law to favor AI companies is terrible news for the creative industries,” said Ed Newton-Rex, founder and CEO of Fairly Trained, in a post on LinkedIn. Fairly Trained is a non-profit that certifies AI models that have been trained ethically (i.e., without the unauthorized use of copyrighted content).
Dan Conway, CEO of the Publishers Association, which represents book and periodical publishers, warned that this reform could lead to “a US tech-led heist of UK copyrighted works.”
Following the House of Lords’ decision on Tuesday evening, Newton-Rex expressed surprise that the amendments passed, given that Labour peers had been ordered to vote against it.
“What’s astonishing is that [Baroness Kidron’s] amendments passed despite Labour reportedly being whipped to vote against them, and the Conservatives largely abstaining. Essentially, Labour voted against the amendments, and everyone else who voted voted to protect copyright holders,” he said in a post on X.
“This should give you some sense of the strength of feeling over the government’s plans to upend copyright law to favor AI companies.”
During the Parliamentary hearing, Baron Arbuthnot of Edrom said, “Image and music generators do not need to be trained on copyright artistic works to be able to create images, designs or sounds for a user.”
“Image and music generators do not need to be trained on copyright artistic works to be able to create images, designs or sounds for a user.”
Baron Arbuthnot of Edrom, UK HOuse of Lords
Meanwhile, Baroness Kidron argued that the government’s approach would transfer “hard-earned property” from individual rights holders to “another sector without compensation, and with it their possibility of a creative life, or a creative life for the next generation.”
She also criticized Labour for being “hooked on the delusion that the UK’s best interests and economic future align with those of Silicon Valley.”
Citing estimates from the International Monetary Fund, the government said the full adoption of AI could boost UK productivity by 1.5 percentage points a year, potentially generating £47 billion per year over a decade.
Baroness Kidron thanked Sir Paul McCartney, Sir Elton John, Lord Lloyd-Webber, Jeanette Winterson, Kate Moss, Sir Simon Rattle, Richard Osman, Kate Bush “and all the other 40,000 artists, musicians, writers and supporters who have added their names to this fight.”
“Without thorough and robust copyright protection that allows artists to earn hard-fought earnings from their music, the UK’s future place on the world stage as a leader in arts and popular culture is under serious jeopardy.”
Sir Elton John
In a recent interview with The Times, Elton John backed calls for new AI rules, saying, “Without thorough and robust copyright protection that allows artists to earn hard-fought earnings from their music, the UK’s future place on the world stage as a leader in arts and popular culture is under serious jeopardy.
“It is the absolute bedrock of artistic prosperity, and the country’s future success in the creative industries depends upon it.”
Music Business Worldwide
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