As more businesses adopt generative and other forms of AI – for content creation, software development, customer support and beyond – a fundamental question is emerging: who owns the intellectual property (IP) in AI-generated work?
The Short Answer? It’s Complicated
🧠 Copyright & Human Authorship
Copyright law generally doesn’t recognise AI as an author in the UK – yet – as a human author is usually required for copyright protection. There is limited protection for computer-generated works, but the relevant laws were put in place long before generative AI appeared, so leave a lot of grey areas. And still depend on identifying who made the “arrangements” necessary to create the work. If no meaningful human input is involved, your rights in the AI-generated content could be limited, or even unenforceable.
👩💻 What if AI is used by employees, contractors, etc.?
As with IP ownership generally, if code, content, designs, etc., are created by an employee using AI tools in their role (and you can own the IP), the employer will typically own the IP. But, if the work is done by a contractor and there is no IP assignment clause in their contract, you will not own the IP in the output — even if you commissioned and paid for it.
🤖 Watch out for AI Tool Terms of Use
Not all AI platforms treat ownership the same way. Some let you own what’s generated – for example they retain rights over the model, but not the specific outputs. Others restrict commercial use, or claim rights over model interactions. If staff are using AI tools outside the company systems (such as personal ChatGPT accounts), you may be exposed to ownership uncertainty due to those third party terms – as well as potential loss of confidential information, data protection breaches, etc.
✅ What should you do?
✔ Audit where and how AI is used internally – and set up guidance (and policies) to monitor AI tools and their use
✔ Review AI tool terms before allowing their use by staff
✔ Check for ownership and reuse restrictions
✔ Understand your rights to use, adapt, or commercialise any AI-generated output
✔ Assess whether personal data is being processed via AI tools and if it is, carry out a DPIA (data protection impact assessment) where required
✔ Ensure you get written IP assignments from all staff, particularly non-employed contractors and collaborators
✔ Get legal advice to stay on top of emerging risks and regulations for your specific use cases
💬 How We Can Help
AI, data, and IP issues affect every business and can differ depending on how AI is used by you and your staff. Whether you’re experimenting with AI tools or embedding them into your products/ services, we can help you:
- Understand and secure IP ownership
- Stay compliant with evolving data and AI regulation
- Reduce the risk of AI compliance issues disrupting funding, deals, or exit plans
Get in touch to chat all things AI and to see how we can help 🤖.
