The UK’s creative industries are under threat unless AI copyright laws are reinforced, warns a House of Lords committee.

The UK, home to some of the world’s most iconic music, film, and art figures, might see benefits shift towards a few US firms, harming local creators, according to the House of Lords Communications and Digital Committee.

As the government deliberates over copyright law updates catering to AI model developers, the committee argues against changes that could weaken the UK’s creative sectors.

The committee’s report highlighted that the creative industries, supported by robust copyright laws, contributed £124 billion to the UK economy in 2023, employing 2.4 million people. Meanwhile, the AI sector added only £12 billion in 2024, with a workforce of 86,000.

Committee chair Baroness Keeley remarked: “The UK’s creative fields are endangered by the unacknowledged and uncompensated usage of copyrighted materials to train AI models. Artists and authors find their work exploited, with AI creating imitations that threaten their livelihoods.

“AI might boost future growth, but the current economic value lies with our creative industries, estimated to reach £141 billion by 2030. Weakening copyright protections for US tech giants is a harmful route for the UK.”

The report criticizes a proposed commercial TDM exception for AI training, which could harm rightsholders and disrupt the licensing market.

The committee urged the government to abandon plans for a TDM exception with opt-out mechanisms for AI models, advocating instead for stronger defenses against unauthorized digital copying and mimicry of creators’ work.

Signs suggest the government’s position is softening, with recent consultation including possible TDM exceptions for AI. However, a strong backlash from creative sectors might lead to delays in implementing such changes.

In a previous year, over 400 UK media and arts figures appealed to the prime minister for copyright transparency in AI training. High-profile supporters included Paul McCartney and Richard Curtis.