Channel 4’s chief executive, Alex Mahon, has warned that artificial intelligence companies are “scraping the value” from the UK’s £125 billion creative industries, and called on the government to impose stricter copyright protections to safeguard the sector’s future.
Speaking to MPs on the Culture, Media and Sport Select Committee, Mahon said that the government’s proposed opt-out copyright regime — which would allow AI developers to train models on copyrighted works unless creators actively object — poses a “dangerous” threat to the UK’s cultural and economic output.
“AI is clearly absolutely critical to the future of our industry,” Mahon said. “But what is happening at the moment is the scraping of value from our creative industries. The burden should be on them [AI firms], not us.”
Under current proposals, AI developers could continue to train large language models (LLMs) — like those powering tools such as ChatGPT — on vast datasets, including creative works, unless the copyright holders actively opt out. Mahon said this undermines a sector that contributes 6% of UK gross value added (GVA) and is growing 1.5 times faster than the wider economy.
“We think LLMs need to license what they use and pay properly for it. We can’t have automated scraping — we need a proper payment and licensing regime,” she said.
Her comments echo mounting concerns across the arts and media industries, where authors, artists, and film and TV executives argue that unlicensed AI training risks eroding creative livelihoods and undermining the commercial value of original works.
Mahon said UK copyright law is already clear, and the government’s suggested reforms risk tipping the balance in favour of Big Tech. She stressed that a fair, opt-in regime would be more aligned with existing licensing frameworks in creative sectors.
Alongside the AI warnings, Mahon also discussed Channel 4’s financial performance, saying the broadcaster expects to break even for 2024, after posting a £52 million deficit in 2023 — its first loss in four years. The network, which is state-owned but commercially funded, relies primarily on advertising revenue and has weathered recent turbulence in the ad market.
“I’m pleased to say that 2024 was a much better year,” Mahon said. “We will be pretty much on a flat deficit — pretty much breakeven.”
She also raised concerns about the visibility of public service broadcasters (PSBs) like Channel 4, ITV, and the BBC on new digital platforms. She argued that regulatory prominence — currently applied to traditional TV platforms — needs to be expanded to social and streaming platforms to ensure continued reach and visibility.
“Without prominence we will disappear,” she said. “We need to think about regulation for promotion, not just preservation. We should consider how to extend prominence to social platforms.”
The UK government’s consultation on AI copyright protections closed in February, and policymakers are now considering next steps. With the UK’s creative industries seen as a pillar of economic growth and soft power, the outcome could have wide-ranging implications for how artists and creators are protected in the AI age.
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Channel 4 boss warns AI firms are ‘scraping the value’ from UK’s £125bn creative industries
