The rise of generative AI tools has changed the game when it comes to content creation. Whether it’s marketing copy, software code, visuals or product ideas, AI is helping businesses move faster than ever. But it’s also creating a whole lot of uncertainty - especially for in-house lawyers tasked with protecting their organisation’s intellectual property.

Who owns AI-generated work? Can you safely use what your AI tools produce? And what happens if those tools were trained on copyrighted content?

Here’s what in-house lawyers need to know, and how to keep their business covered.

Who owns AI-generated content?

Under UK law, copyright only applies to “original works” with a human author. That’s a problem when it comes to content made by AI, because if there’s no human creator, there may be no copyright protection at all.

That said, the UK’s Copyright, Designs and Patents Act 1988 does include a clause for computer-generated works. It states that “the author shall be taken to be the person by whom the arrangements necessary for the creation of the work are undertaken.”

In practice, that usually means whoever set up the process, not the AI model itself. But the wording is vague, and legal commentators (including the UK Intellectual Property Office) have acknowledged that the law hasn’t kept pace with technological change. In short: we’re in murky waters.

 Without a clear legal framework, in-house teams need to tread carefully, especially if AI-generated content is being commercialised or published externally.

Is using AI content a copyright risk?

Even if your business doesn’t care about owning the outputs, there’s still a key risk to think about: infringement. That’s because many AI models are trained on massive datasets, which can include copyrighted works scraped from the internet.

If the tool your team is using has been trained on unlicensed material, there’s a chance its outputs could include, or closely resemble, protected content. That could land your business in hot water. 

This issue is already hitting the courts. In 2023, Getty Images filed a lawsuit against Stability AI, claiming that millions of its photos were used without permission. And OpenAI, maker of ChatGPT, has faced multiple copyright challenges from authors, artists, and developers.

For in-house lawyers, that means you need to know:

• What datasets your AI tools were trained on.
• Whether those datasets were properly licensed.
• How the tool generates and filters outputs.
• Whether your commercial use of AI content could attract claims.

 Until the case law catches up, this is all about minimising exposure and managing risk.

Five ways to protect your business 

AI and IP law may be evolving, but there are clear steps you can take to keep your organisation on solid ground.

1. Check the terms
   Not all AI tools are created equal. Review the terms of use for any AI software your business is using. Some platforms explicitly say that users own the outputs; others don’t. Be clear on what your team can use, modify, or commercialise.
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2. Do your due diligence
   Ask vendors how their models are trained and what safeguards they have in place to avoid copyright infringement. If they can’t give you a straight answer, think twice.
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3. Update your policies
   Create internal guidance on how employees can (and can’t) use generative AI. That might include rules around reviewing outputs before use, restricting high-risk use cases, or requiring sign-off for any commercial content.
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4. Use your contracts wisely
   When you’re procuring AI tools, include IP-specific clauses around ownership, warranties, and indemnities. And if your team is creating content using AI for clients, be clear about who owns what.
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5. Keep up with the legal landscape
   The UK IPO is currently working on a Code of Practice to support responsible AI development and IP protection. In the meantime, keep an eye on new cases, policy announcements, and legislative updates - things are moving fast.

Final thought 

AI isn’t going anywhere, and neither is the complexity that comes with it. For in-house lawyers, now’s the time to get ahead of the curve. By understanding the risks, tightening your contracts and policies, and asking the right questions of your vendors, you can help your business harness the power of AI without losing control of its IP.