The UK government has quashed a proposed amendment to its Data Bill that would have forced AI companies to disclose whether they use copyrighted material in training their models – a move that’s ignited fury from artists, publishers and digital rights advocates.

The amendment passed in the House of Lords last week but was stripped from the legislation in the House of Commons on Wednesday using an obscure mechanism known as “financial privilege.”

UK ministers argued the measure could incur new regulatory costs, which the Commons has the right to block.

The move comes despite growing pressure from the UK’s £125 billion (A$260 billion) creative sector, with critics accusing the government of protecting powerful tech firms at the expense of musicians, authors and publishers.

Data protection minister Chris Bryant acknowledged concerns from creatives, calling it an “apocalyptic moment” for some, but argued that broader copyright reform is needed and should not be tackled in a “piecemeal” fashion.

Crossbench peer Baroness Beeban Kidron, who introduced the amendment, responded fiercely, saying: “It is astonishing that a Labour government would abandon the labour force of an entire sector… The government is playing parliamentary chess with their livelihoods.”

Media and publishing leaders have also weighed in. Owen Meredith, CEO of the News Media Association, called the decision “extremely disappointing,” accusing the government of “dismissing industry concerns” and missing a chance to support a transparent, licensed market for AI content use.

As reported by The Guardian, The original amendment aimed to shed light on how generative AI models use copyrighted data, which is an issue that’s caused global concern as AI companies build powerful tools using vast, often unlicensed content troves.

Hundreds of UK artists, including Paul McCartney and Dua Lipa, recently signed an open letter urging the government not to “give our work away” to overseas tech giants.

Kidron plans to introduce a revised amendment when the bill returns to the Lords next week.