On Wednesday, March 18, 2026, the ongoing debate over text and data mining (TDM) highlights a critical tension between the UK's post-Brexit regulatory ambitions and its practical implementation, particularly in the artificial intelligence sector. Anand Menon, a director at Public First and UK in a Changing Europe, argues that while Brexit was intended to grant the UK greater regulatory flexibility and a competitive edge over the European Union, the reality has often been one of drift and delay, threatening economic growth.
The Promise of Brexit: Regulatory Agility and AI Potential
For many supporters, Brexit represented an opportunity for the UK to break free from the EU's perceived bureaucratic and risk-averse regulatory framework. This vision of regulatory agility was meant to foster innovation, especially in fast-moving sectors like technology and AI. Chancellor Rachel Reeves recently emphasized in her Mais lecture that alignment with EU rules would generally be the norm, but autonomy might be necessary in areas of strategic importance, such as AI, which holds enormous economic potential.
The Reality of Divergence: Friction and Uncertainty
However, the anticipated benefits of regulatory freedom have not materialized as expected. Instead of moving swiftly, the UK has often faced increased friction, with Whitehall spending years managing the consequences of divergence or the threat of it. Ministers have repeatedly found that major, trade-exposed sectors cannot simply ignore the EU's influential regulatory standards. When the EU establishes rules that shape markets, supply chains, and legal risks, the UK typically faces three options: align, diverge, or drift. Too frequently, the outcome is drift, leading to ambiguity and inefficiency.
Text and Data Mining: A Case Study in Regulatory Drift
Text and data mining serves as a prime example of how this regulatory drift could undermine the UK's AI ambitions. TDM involves the automated analysis of large volumes of text and data to identify patterns, a fundamental process for applications ranging from fraud detection to medical research. It is crucial for the UK's industrial and services sectors, making it far more than a niche copyright dispute between tech companies and publishers. Increasingly, it represents an economy-wide issue regarding whether UK firms can confidently use data to develop and adopt AI tools.
EU's Clear Framework vs. UK's Ongoing Debate
In contrast to the UK's indecision, the EU has already implemented a clear regulatory framework for TDM. Across the EU, companies are generally permitted to use text and data mining for commercial purposes, unless copyright owners explicitly opt out through a standard, machine-readable mechanism. This model offers two key advantages: it is legible and settled, allowing businesses to plan effectively and rights holders to negotiate with clarity.
The UK, however, remains mired in debates over first principles. The current statutory exception is narrow, allowing TDM only for non-commercial research with lawful access. All other uses exist in a grey area of licensing, legal uncertainty, or avoidance. In 2022, the government proposed a broader exception that would have allowed TDM for any purpose without opt-outs, but it collapsed after opposition from creative industries. Since then, consultations and delays have persisted, with ministers pushing politically contentious decisions further down the line.
Consequences of Delay: Favoring Big Players and Stifling Growth
This regulatory uncertainty disproportionately benefits large corporations with extensive legal teams and lobbying power, enabling them to negotiate bespoke deals. Smaller businesses, which ministers often champion, are left facing significant risks and ambiguity. Meanwhile, creators operate in a market with inconsistent standards and fragmented negotiations, making enforcement challenging.
Research conducted for Microsoft underscores that TDM is already embedded across the UK economy and that future AI adoption hinges on clearer rules and predictable data access. The potential economic gains are substantial, with estimates suggesting up to £510 billion in annual growth by 2035. However, achieving this requires a functional framework that moves beyond protracted disputes between industries.
Moving Forward: From Slogans to Decisions
Brexit did provide the UK with more room to maneuver, but this has not translated into effective action. If the government is genuinely committed to fostering growth in tech and AI, it must demonstrate an ability to convert slogans into decisive policies—quickly, clearly, and in a manner that supports economic expansion. Otherwise, the mantra of "take back control" risks becoming a hollow promise, with the UK merely observing as others set the rules while it remains entangled in endless debates.
