The world is not waiting for Britain on AI

Without a pro-innovation framework that keep pace with our competitors, British start-ups will fall behind

Today, the government will update Parliament on its position on the difficult issue of AI and copyright. It is critical that produces a pro-innovation framework which at minimum keeps pace with our international competitors. Without one, British startups are put at a disadvantage and the UK economy loses out as investment and innovation flows elsewhere. 

Time and again, the UK has led the way in inventing the future. From the first algorithm in 1843, to the creation of the first computer in 1939, to the conception of the world-wide-web in 1989, right up to AlphaFold, the AI system that cracked one of biology’s greatest puzzles by predicting the structure of virtually every known protein. Decades of leadership in technological innovation is no accident. It is the direct result of the UK empowering its homegrown pioneers and pursuing policies that have enabled trailblazing innovations.

It was this ambition that was at the heart of the government’s AI Opportunities Action Plan, published in January 2025. That plan set out a clear vision of the action the UK needs to take to remain a global leader in AI. Of critical importance is addressing the question of AI and copyright in a way that builds on Britain’s strengths in both technological innovation and world-leading creative industries, and keeps pace with the rest of the world.

Britain’s closest competitors in the global AI race already all offer more supportive environments when it comes to the issue of copyright

That means matching what our competitors have already done or are putting in place. Britain’s closest competitors in the global AI race already all offer more supportive environments when it comes to the issue of copyright. The United States operates under a framework that, however contested in the courts, gives AI companies the legal basis to innovate. Japan, Singapore and others have created pro-innovation frameworks. Even the European Union has a broad exemption for text and data mining  with an opt-out. Britain’s role in shaping the next generation of AI demands we take this international landscape into account. 

After a year of debate that has provided far more heat than light, we need to recognise that the rest of the world has not stood still. Technology companies of all sizes will now be asking whether the Government’s approach remains consistent with the ambition set out in the AI Opportunities Action Plan, and with the Prime Minister’s stated determination for the UK to be an “AI maker” rather than an “AI taker”.

Squandering momentum

The momentum the UK risks squandering is real. AI startups in Britain raised around $8 billion last year, approximately a third of all venture capital invested into UK tech. The UK is once again Europe’s startup engine, producing more unicorns than France and Germany combined. That recovery happened because stability returned and founders began building with confidence. A clear pro-innovation framework on AI and copyright will continue to support that mission.

The debate around AI and copyright has too often been framed as a binary choice between backing tech companies or backing creators. That is a false choice. Britain’s long-term success depends on both. The choice is not between creators and innovators. The real choice is whether Britain leads the AI era, or watches others do so.

We must not give up on finding a practical way forward, one that enables pioneering technology companies, large and small, to innovate at scale whilst also giving creatives and rightsholders mechanisms to express their rights. The priority is a solution that works for both sectors, while keeping sight of the larger prize: AI-driven innovation, investment and economic growth.

Britain works best when our creative and technology sectors stand shoulder-to-shoulder, not toe-to-toe. AI is reshaping the world, and Britain must play a full role in shaping AI. We should not delegate the design of our AI future to others.

Vinous Ali is deputy executive director at Startup Coalition

Antony Walker is deputy CEO at techUK