The BPI says the UK is on the verge of a major AI music licensing boom, following the release of a new report exploring how copyright-protected music could fuel growth across both the creative and technology sectors.
The report, titled Driving UK Growth: The Role of Licensing Music in the Age of AI, was commissioned by the BPI and conducted by WPI Economics.
It argues that Britain could strengthen its position as a global leader in music and artificial intelligence if the government maintains current copyright protections and forces greater transparency from AI developers.
274 AI licensing agreements already signed
According to the report, rights holders and AI developers across creative industries have already signed 274 commercial licensing agreements as of 2026.
The research also states that major global music companies and aggregators have already entered licensing partnerships with AI firms and are actively exploring more deals.
The study found:
- 77% of respondents believe AI music licensing is important for future growth
- only 16% are actively exploring partnerships with AI companies
- 97% believe the current copyright framework is critical for AI licensing
- 77% of AI users believe artists and rights holders should be paid if their work is used to create AI-generated songs
- 54% believe AI music licensing could support economic growth
The report also highlighted the wider value of the UK music business, which contributed £8 billion to the UK economy in 2024.
BPI warns copyright uncertainty could slow growth
The report argues that ongoing debates around weakening copyright protections risk damaging what it describes as an emerging high-growth licensing market.
It also raised concerns about the lack of transparency surrounding training data used by some AI developers.
The report recommends several policy measures to support the market, including:
- maintaining existing copyright law
- mandatory disclosure of AI training data
- labelling AI-generated content
- protecting the sovereignty of UK copyright law
BPI says ethical AI licensing is already happening
Sophie Jones, chief strategy officer, BPI, said the research demonstrates that music and AI companies are already building commercially viable partnerships.
“This research demonstrates that there is a viable path to making the UK a global hub for ethical AI-music licensing.”
“Music labels are pioneering licensing deals with ethical AI companies with multiple deals already struck and many more conversations underway.”
“For this market to scale successfully, the Government must support it through a firm commitment to upholding existing copyright laws and mandating record keeping and disclosure.”
“This would enable us to create a marketplace where innovation thrives, creators are paid, and the UK economy benefits from two vibrant and mutually reinforcing sectors.”
WPI Economics says UK is ready to unlock a new market
Laura Osborne, managing director of WPI Economics, said the UK now has an opportunity to establish a major new licensing economy built around AI and copyrighted music.
“The findings of this research demonstrate that the UK now stands ready to unlock a high-potential licensing market.”
“It is vital that the UK government creates a policy environment that encourages AI companies to have an ethical relationship with rights holders, underpinned by strong licensing arrangements.”
Politicians back stronger copyright protections
The report also included contributions from politicians involved in ongoing debates surrounding copyright and AI regulation.
Lord Vaizey of Didcot, former Minister of State for Culture and the Digital Economy 2010-16, said:
“I welcome this report, which identifies clearly the opportunity for commerce and economic growth that comes not from sweeping away copyright, but from licensing it.”
“Our role as policy makers is to let market makers from music and tech work their magic through licensing, to stand firm on copyright, and to encourage the dialogue and transparency needed to accelerate their progress.”
Samantha Niblett, Labour MP and member of the Science, Innovation and Technology Committee also supported the report’s findings.
“This excellent report outlines the early signs of collaboration between music and tech, two jewels in Britain’s crown, and demonstrates that responsible, copyright-licensed innovation is not only possible but already happening.”
“It’s time to reject the old tech mantra of ‘move fast and break things’ and instead encourage these two sectors to ‘move together and build things.”
AI licensing is becoming a major music industry battleground
The debate around AI training, copyright and music licensing has become one of the defining issues facing the global music business.
Major labels, publishers and artist organisations have increasingly pushed for stronger regulation and transparent licensing systems as generative AI platforms continue to expand.
At the same time, AI companies are seeking access to music catalogues and copyrighted material to train audio generation systems and develop new commercial products.
The BPI report suggests that licensing, rather than legal conflict, could become the foundation for how the music and AI industries work together in the years ahead.
