The second wave of generative artificial intelligence is rapidly transforming the technological and economic landscape, yet the UK Government risks falling behind by focusing on outdated regulatory concerns. Aaron Jones, founder and CEO of Yepic AI, has urged policymakers to move beyond legacy issues—such as historical training data controversies—and instead engage with the emerging impact of AI. He argues this shift is vital for building a fair and innovative AI economy that balances progress with fair compensation for creators.
Jones warns that the Government’s current approach remains stuck in old debates, often engaging only early adopters and industry giants that have already profited from AI’s initial wave. This narrow focus, he says, risks repeating mistakes from the social media era, when tech firms shaped digital ecosystems to their own advantage, sidelining creators and public interest.
The rise of Agentic AI—autonomous systems capable of independent decision-making and active interaction—threatens to upend traditional value chains across publishing, advertising, e-commerce and beyond. These AI agents will change how consumers search, discover and engage with content and commerce, rendering current laws focused on data scraping increasingly irrelevant.
Industry experts stress that legal frameworks must evolve to reflect these changes. Proposals allowing AI firms to use copyrighted works unless creators opt out have sparked concern over the erosion of creators’ rights. Many advocate instead for licensing systems that give creators control over their intellectual property and ensure fair compensation. Such models would help build trust in AI while encouraging continued creativity—seen as key to sustained technological progress.
Proven solutions already exist. Platforms like YouTube and TikTok operate revenue-sharing schemes, while ProRata AI has partnered with more than 400 publications under a 50/50 revenue-share model, crediting AI-generated content back to its sources. This approach promotes transparency and fairness, addressing concerns from creators whose work is often used by AI without payment or consent.
The UK is now at a pivotal moment. Following the AI Safety Summit last November, where the country set out ambitions for AI leadership, political priorities have shifted. The new government under Keir Starmer plans to introduce binding rules on powerful AI models, ban harmful deepfakes and require transparency through mandatory release of test data. These measures aim to balance innovation with safety and protect creators, workers and the public. Meanwhile, cross-party MPs are calling for urgent copyright reforms to guard against AI exploitation and ensure fair compensation for creative industries.
However, significant obstacles remain. Efforts to integrate AI in the UK’s public sector face challenges from outdated systems and a shortage of digital skills. Much government data remains locked in legacy infrastructure, and attracting AI talent remains difficult. These barriers highlight a wider need for modernised infrastructure and strong ethical standards to support AI across both public services and private industry. Concerns raised by the Writers Guild of America also reflect the global scale of these issues. The guild’s recent strike focused on securing protections around AI’s role in scriptwriting—a concern likely to affect other sectors reliant on creative work.
To seize the opportunities AI presents and position the UK as a leader in responsible innovation, policymakers must urgently change course. Engaging with innovators driving the second wave of AI, adopting revenue-sharing models that fairly reward creators, and enacting forward-looking legislation will be essential. Without such changes, the UK risks allowing Big Tech to dominate AI’s future to the detriment of creators and the wider public.
This is a decisive moment. The Government’s readiness to adapt will determine whether the UK leads in building an ethical, innovative and inclusive AI economy.
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