Who Owns AI Output? A Plain-English Guide for UK Businesses
As AI tools become a staple in the workplace, many businesses and professionals are asking: when you use an AI tool under a licence to generate work product, whether for commercial, professional, or internal purposes, who actually owns the output and the resulting intellectual property?
Is it your business, or does the AI provider have a claim?
The Legal Starting Point: E&W Law Starting Position
Under UK law, the default position is relatively straightforward. When an AI tool is used to generate content, the law does not recognise the AI itself as the author. Instead, for “computer-generated” works, the author is deemed to be the person who made the necessary arrangements for the creation of the work. In most cases, this will be the user, the person or business providing the prompts, instructions, and direction to the AI.
This rule applies regardless of whether you are using the AI for personal, commercial, or professional purposes. The fact that you are producing work product for your business or clients does not, in itself, change the default legal position. If you are the one directing the AI and making the key creative decisions, you are generally considered the author and first owner of any copyright that arises in the output.
The Critical Role of Your Licence
However, the answer is not definitive. The terms of your licence agreement with the AI provider can override the default legal position. Many AI providers include specific clauses in their terms of service or commercial contracts that address ownership of outputs. Some providers assign ownership of the output to the user, while others may reserve certain rights for themselves, or require a licence-back to use your outputs for service improvement or training.
It is essential to review your licence agreement carefully. If the contract is silent on ownership, the default UK legal position will apply, and you will likely own the output. If the contract contains clear terms assigning or reserving ownership, those terms will take precedence. This is true whether you are using the AI for internal business purposes, client work, or any other professional activity.
Human Input and Originality Still Matter
For copyright to subsist in AI-generated output, there must be a sufficient degree of human input, skill, and judgment. If your involvement is meaningful, such as crafting detailed prompts, curating, or editing the output, copyright is more likely to arise, and you will be the first owner (subject to any contract to the contrary). If your input is minimal or purely mechanical, there may be no copyright in the output at all, and neither you nor the AI provider would have exclusive rights.
Commercial and Professional Use: No Special Rules
Importantly, using an AI tool under a licence to produce work product for commercial or professional purposes does not, by itself, alter the default position on ownership. The same statutory rules and contractual principles apply, regardless of the context in which the AI is used. What matters is who made the necessary arrangements for the creation of the work, and what your contract with the provider says about ownership.
Practical Tips for Businesses
Read the licence agreement: Do not assume you own the output - check what the contract says about ownership and use of AI-generated content.
Prefer clear terms: Where possible, use providers or plans that assign ownership of outputs to you and limit any licence-back to the provider.
Document your input: Keep records of your prompts, edits, and creative decisions to evidence your role in the creation process.
Review for third-party rights: Ensure outputs do not infringe third-party IP, especially if you plan to commercialise or publish them.
Seek advice for critical uses: For high-value or sensitive work product, consider bespoke agreements or legal review.
How We Can Help
Our team advises on AI tool licences, negotiates ownership and risk allocation, and helps businesses implement practical governance for AI use. If you need clarity on who owns your AI-generated work product, or want to ensure your contracts and policies are fit for purpose, please get in touch.
Disclaimer: This blog is for general guidance in England and Wales and does not constitute legal advice. For advice tailored to your specific circumstances, please contact us.
Written by Harrison Carr