18 June 2025 5 mins

You’ve probably noticed more content popping up with the label “Created by AI.” Whether it’s blog posts, product descriptions, or entire pitch decks – AI tools are changing how businesses create and communicate. 

But here’s the bit many businesses miss: 

Who actually owns the AI output? 

What the law says 

With the eloquent poetry, stunning imagery and convincing written papers, among other things, that we increasingly see AI produce, it is understandably tempting to read the question “who owns the AI output?” as “who owns the copyright to the AI output?”  

Under some jurisdictions AI outputs are not deemed to meet the originality requirements for attracting copyright so asking who owns the copyright to an AI output would not get your very far in those jurisdictions. 

However, under UK law, copyright in AI outputs could exist (and therefore be owned) thanks to the trailblazing Copyright, Designs and Patents Act 1988 (“CDPA”). Under CDPA (Section 9(3), if you’re interested) where a work is generated by a computer and there’s no human author, the author is taken to be the person who made the necessary arrangements for the creation of the work. 

The slight issue is the CDPA does not actually define who a person who made the necessary arrangements is and, at the time of writing this article, there is no case law relating to AI outputs clarifying this either. 

Wait! Don’t go… 

Before you close this article and type into your AI “who owns AI output”, let us offer you our thoughts: 

  1. Applying what the CDPA says to AI outputs, you could say:  
  • The AI output could not exist without the prompt setting out the goal and the parameters – so the person prompting made the “necessary arrangement” when they inputted the prompt; or 
  • The AI output could not exist if the person prompting did not have access to that particular AI system – so the person who chose and/or configured the AI system made the “necessary arrangement” when they selected and trained it; or 
  • The AI output could not exist if the AI itself simply did not exist, so the AI developer made the “necessary arrangement” when they created the AI. 

The author (and for the purposes of our question, the owner) could be the person who prompted the AI; the person who chose and/or configured the AI system; or the AI developer.  Which of these people own the AI output really comes down to facts including the level of involvement that person had in the AI output and the type of AI system it is.  

This is all assuming that the data the AI was trained on is not infringing on any third party IP rights too (but that is a different headache altogether…) 

  1. In the absence of complete clarity on the matter in legislation or case law, find out who contractually owns the AI output. Check what your AI provider’s terms and conditions for who owns the AI output.  Do you, as a user, own the AI output from your prompts or are you only given rights to use the AI output (i.e. a licence)?  

Ask questions 

So, you have done your homework on the legal and contractual positions on AI output ownership, now what about commercial and operational clarity on AI usage in your business?  Do you have effective AI governance, training and policies in place at work?  Would you know, for example, if: 

  • your team is using AI tools collaboratively? 
  • a freelancer used an AI you’re not familiar with without telling you? 
  • the AI pulled material from sources you don’t control? 

This is where smart businesses are getting ahead: 
They’re not just using AI – they’re putting guardrails around it. Documenting who’s doing what, where IP sits, and what happens if things go sideways. 

Why this matters for your business 

Ownership of content isn’t just a legal technicality – it’s a business asset. If you’re publishing AI-generated material: 

  • Do you really own it? If not, do you at least have the relevant licence rights to use it for the purpose(s) you intend? 
  • Can you license it? 
  • Could someone else claim a stake in it? 

And if you’re outsourcing content creation, what terms are you relying on? 
If the content was created using AI, are your rights still secure? 

The question: “who owns the AI output?” is not an academic question, it is a key to protecting your brand, your ideas, and your bottom line. 

Thinking of using AI in your business? 

Whether it’s for marketing, comms, or internal tools – it’s worth getting the legal bits right from the start. Not later, when something’s gone viral (or wrong). 

If you want to chat it through – just drop us a message. We’re always happy to help make sense of it all. 

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Kay Yung

Kay graduated with a law degree from Southampton University and has over ten years experience practising commercial law in-house.

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