Britain's creative industries on Wednesday welcomed a government U-turn on proposals that would have allowed AI firms to use copyrighted material without prior permission.

Technology secretary Liz Kendall said the government had abandoned its earlier "preferred option" of permitting AI developers to train models on copyrighted works unless rights holders explicitly opted out.

"We have listened," Kendall said in a statement.

"We have engaged extensively with creatives, AI firms, industry bodies, unions, academics and AI adopters, and that engagement has shaped our approach. This is why we can confirm today that the government no longer has a preferred option."