AI and Copyright in media and gaming: Risks, opportunities and legal realities

Artificial intelligence (AI) is rapidly changing the way media content is created and distributed. From script-writing tools to AI-driven visual effects, AI offers new creative options and faster production. But these benefits come with legal risks, particularly around copyright ownership, use and enforcement. For rights owners, production companies and broadcasters, the questions raised by AI are no longer hypothetical — they demand urgent attention.

Who owns AI-generated content under UK copyright law?

Copyright law in the UK is based on the Copyright, Designs and Patents Act 1988. Section 9(3) provides that, where a work is computer-generated, the author is deemed to be “the person by whom the arrangements necessary for the creation of the work are undertaken.” This provision was designed in an era of simpler automation, not with generative AI in mind. This leaves the question: is the author the developer of the AI system, the end-user who provided the prompts, or someone else entirely?

The European Court of Justice (CJEU) has consistently held that copyright subsists only in works that are the “author’s own intellectual creation,” requiring human input and originality. This approach excludes AI-only works, leaving a gap between UK and EU law which could affect international co-productions. Recent cases in the US, where courts have rejected copyright protection for wholly AI-generated works, reinforce this uncertainty.

AI training data – a copyright risk for media companies?

Another pressing issue is how AI models are trained. Generative tools rely on vast datasets, which are often built from existing works. Where that material is copyrighted, training without a licence may amount to infringement. Media companies adopting AI tools should consider the source of the AI systems they use and confirm that the providers hold the necessary permissions.

When personal data is involved in training sets, data protection law also comes into play. The Information Commissioner’s Office (ICO) has published guidance on the lawful use of personal data in AI, requiring transparency, fairness and accountability. For producers using AI to generate or edit content, this adds an additional compliance layer alongside copyright.

How can rights owners manage AI copyright risks?

AI not only raises questions about ownership, but it also accelerates the pace of infringement. Deepfake videos, AI-generated music tracks and automated translations can be created and shared at scale. This presents new enforcement challenges for rights owners, who may struggle to detect and remove infringing material quickly enough to protect commercial value.

Consider a scenario where an AI tool generates a song indistinguishable from a well-known band. Within hours, that track could be online and monetised, leaving the original rights owners scrambling to respond. Without robust monitoring systems and contractual protections, the commercial damage could be significant.

International Distribution adds to the challenge. Content posted to a platform based overseas may fall outside UK jurisdiction, forcing rights owners to pursue takedown notices across multiple systems. With infringement crossing borders, producers and rights holders increasingly need to collaborate with regulators and industry groups to standardise responses.

UK and EU Guidance on AI and Copyright

Governments and regulators are beginning to grapple with the copyright implications of AI. In the UK, the Intellectual Property Office has held consultations on AI and copyright exceptions, signalling possible reforms. In the EU, the AI Act- although not directly a copyright instrument- introduces transparency and risk-management obligations for AI systems. Together, these measures suggest a trend towards stricter oversight of how AI is deployed in creative industries.

For businesses, this means keeping a close eye on regulatory developments and on anticipated changes. Contracts drafted today should be flexible enough to adapt to new laws or guidance that may emerge in the next two to three years.

Strategic steps for rights owners: Managing AI copyright risks

AI offers clear opportunities- it can reduce production costs, enable personalised content, and access new markets through rapid translation and localisation. However, the risks are equally significant:

• Disputes over ownership and authorship.
• Liability for unlicensed training data.
• Reputational risks from misuse or over-reliance on AI outputs.

Checklist for rights owners

• Update contracts to clarify who owns AI-generated outputs.
• Ensure licensing agreements address AI use explicitly.
• Carry out due diligence on AI providers’ use of training data.
• Monitor UKIPO and EU consultations on copyright reform.
• Explore licensing technology solutions for detecting AI-created infringements.
• Train in-house teams to recognise AI-specific copyright issues.

Looking ahead

The media industry has always adapted to technological disruption, from the printing press to digital streaming. AI is simply the latest, and perhaps the most complex, iteration of this trend. Those who embrace its potential while managing its risks are likely to emerge strongest. For producers, that means embedding AI considerations into compliance, governance and creative decision-making today, rather than waiting for disputes to arise.

Conclusion

AI will not replace copyright law, but it is testing its limits. For businesses and the wider public, this means being alert to how AI could affect both the creation and use of media content. Organisations should consider how their contracts, licensing arrangements and compliance frameworks reflect the realities of AI. Individuals too need to be aware of the risks around unlicensed use of their work or personal data. By taking proactive steps now, businesses can protect their commercial interests and reputation, while the public can ensure their rights are respected. The pace of technological change makes this a societal as well as a legal challenge, and addressing it early is essential to maintain trust and fairness in the media sector.