Politics Home | Britain’s economy cannot afford a false choice between creativity and innovation

Britain has a bad habit of turning policy debates into battles – one side pitched against the other. The discussion around text and data mining (TDM), the process by which AI uses data, has become the latest example, creating a false choice between innovation and creativity.

That framing is wrong. Britain’s creative industries are one of the country’s great success stories. So too is British tech and innovation – an area where we shine on the world stage. Policymakers should not force a choice between them, but create the conditions for both to grow together.

This matters because TDM is no longer a niche technical issue, nor is it confined to major technology firms. It is now widely used across the economy and sits at the heart of how modern businesses use AI, analyse information, develop new products and raise productivity – from Britain’s car industry to new medicines for the NHS.

Public First research shows that one in five UK businesses already use TDM tools. In sectors central to the UK’s industrial strategy – life sciences and financial services – that figure rises to a third. If we want the UK to lead in AI adoption, scientific discovery, advanced services and digital innovation, we cannot ignore that access to AI tools will determine whether British firms can compete.

More than half of British businesses want to move from basic to advanced integration of AI and cloud technologies within two to three years. Yet many told us that legal risk is holding them back. Seventy‑four per cent of businesses performing TDM said access to external data is essential to their operations.

That should concern ministers. Britain’s growth outlook is far from rosy. Productivity remains weak, fiscal headroom is tight, and every serious economic strategy relies on far faster diffusion of AI and digital technologies. In these circumstances, we cannot afford to close off potential growth by making it harder for UK businesses to compete in a global economy that is only becoming more cut‑throat.

The decisions the government takes now have major consequences. If Britain creates an environment where companies have clear permission to embrace new technology, our modelling suggests AI‑powered businesses could contribute as much as £510 billion to UK GDP by 2035. But under a highly restrictive path, that falls to £290 billion – a £220 billion gap, roughly equivalent to Scotland’s GDP (including oil and gas).

None of this is to dismiss the legitimate concerns of rights holders. Creators should be confident their work is respected and rewarded. But we should not respond by building a regime so restrictive that businesses from biotech to education hesitate to use AI.

Licensing is one obvious part of the solution. Voluntary commercial agreements are beginning to emerge and can offer value for rights holders while giving technology firms access to high‑quality, curated data. Both tech companies and rights holders are already investing in licensing tools. Developing workable models is far preferable to a prolonged policy battle.

Yet licensing alone will not be enough. If companies lack confidence that they can use AI for commercial advantage, the framework becomes too cumbersome and too uncertain. That would throw grit into the gears of UK innovation at exactly the moment growth is needed most – leaving the country poorer, less productive and less competitive.

Creative industries would feel those consequences too. Many of the UK’s most dynamic creative sectors – from video games to visual effects – have themselves argued for commercial TDM exemptions. Britain does not need to choose. It can build a framework that gives both sectors the confidence to invest, experiment and work together.

Other countries have already made that choice, from the EU to Singapore and Japan. Yet a polarised domestic debate risks leaving Britain behind. The Government should aim for a settlement that supports both creativity and innovation – and look at how widely this kind of AI innovation is already being used across the economy to give them the confidence to act.

Neil Ross is Director at Public First and leads its Technology, Media and Telecoms practice.