Finance
UK should back licensing-first approach for AI training, says upper house committee
Published by Global Banking & Finance Review®
Posted on March 6, 2026
2 min readLast updated: March 6, 2026
Quick Summary
A House of Lords committee urges the UK to reject unlicensed text‑and‑data mining for AI training in favor of a licensing‑first approach, warning that allowing unrestricted mining risks undermining creative industries and fostering dependence on opaque foreign AI systems.
UK Parliament Committee Recommends Licensing-First Regime for AI Training
UK Parliament's Stance on AI Training and Copyright
LONDON, March 6 (Reuters) - Britain should reject any move to let artificial intelligence companies freely mine copyrighted material for commercial model training and instead adopt a licensing-first regime, a committee in the upper house of parliament said on Friday.
Governments worldwide are wrestling with how copyright should apply to AI training, as developers scrape vast amounts of online material to build models and creators say they are losing control of their work.
Britain has been consulting on the issue but has yet to confirm a final approach after stepping back from an earlier preference for allowing commercial text-and-data-mining with an opt-out for creators.
Government's Review and Policy Reset
Technology minister Liz Kendall said in January the government was seeking a "reset" on its AI copyright plans, calling its earlier proposal a mistake and saying the review would put "reward and control" for artists at its centre.
The government is due to publish its review in March.
The Role of the House of Lords
The House of Lords, the unelected second chamber of the UK Parliament, scrutinises legislation and conducts inquiries that shape government policy. Its communications and digital committee warned in a 180-page report that Britain risks long-term dependence on opaque foreign AI systems.
Committee's Warning on Foreign AI Dependence
CALL TO DROP TEXT-MINING EXCEPTION
Risks and Recommendations
Britain faces a choice between becoming a leader in responsibly trained, transparently developed AI models, the committee said, or sliding into "tacit acceptance of large-scale, unlicensed use" of copyrighted works by mostly U.S.-based developers, a path it said could undermine creative livelihoods.
The upper house urged the government to formally abandon proposals for allowing commercial text-and-data-mining with the opt-out.
It said similar opt-out systems in the European Union had "failed to support a strong licensing market" and were built on technical tools that were unreliable, patchy and burdensome for individuals.
Additional Information
($1 = 0.7502 pounds)
(Reporting by Sam Tabahriti. Editing by Mark Potter)
Key Takeaways
- •The House of Lords Communications and Digital Committee recommends abandoning proposals for a commercial text‑and‑data‑mining exception and adopting a licensing‑first regime to protect creators and foster a robust UK AI licensing market (computing.co.uk).
- •The committee warns that allowing unlicensed use of copyrighted works by mainly U.S. AI developers could damage UK creative industries and lead to reliance on opaque foreign AI systems (computing.co.uk).
- •Public consultations indicate overwhelming support—up to 88%—for requiring licences for AI training use of copyrighted works, while only about 3% support the opt‑out model previously favored by the government (silicon.co.uk).
References
Frequently Asked Questions about UK should back licensing-first approach for AI training, says upper house committee
1What is the House of Lords' stance on AI model training and copyright?
The House of Lords recommends a licensing-first approach for AI model training, urging against free commercial mining of copyrighted material.
2Why is the UK reconsidering its AI text and data mining policy?
The UK government is resetting its approach due to concerns that the previous policy did not ensure sufficient control and reward for creators.
3How does the House of Lords view opt-out systems in AI copyright?
The committee finds opt-out systems unreliable and ineffective in fostering strong licensing markets, citing issues seen in the European Union.
4What risks does the House of Lords highlight regarding AI trained on unlicensed data?
The report warns of potential long-term dependence on opaque foreign AI models and the undermining of creators’ livelihoods.
5When is the UK government expected to publish its AI copyright review?
The government is due to publish its review in March.
