AI, Virtual Influencers and the Copyright Minefield: What Entrepreneurs Need to Know

I'll be upfront: this article was written with the assistance of an AI. The irony of asking Claude to write about AI and intellectual property is not lost on me, and I think it actually illustrates something important about where we all are right now. More on that at the end.



The question came up recently on the forum from someone who has purchased a domain and wants to ride the wave of AI-generated music, virtual influencers and K-pop style digital idols into a new online business. The community response was cautious, and rightly so. This is one of those areas where the excitement of the opportunity is running well ahead of the legal clarity, and entrepreneurs who don't do their homework could find themselves on the wrong end of a cease and desist before their business has even found its feet.

So let's break it down properly.


What is actually being discussed here?

The virtual influencer and AI idol market is genuinely booming. South Korean and Japanese entertainment companies have been experimenting with AI-generated performers for years, and the model is spreading. There are now AI-generated pop acts with millions of followers, digital avatars appearing in brand campaigns, and AI music tools that can produce tracks in the sonic style of almost any artist you care to name, in minutes, for free.

The question our fellow forum member is asking is essentially this: if I build a website showcasing AI music that sounds like the Beatles, or feature AI-generated content styled on real artists, can the original artists or their estates come after me?

The honest answer is: increasingly, yes.


The legal position is shifting fast

For a long time, style itself was not considered copyrightable. You could write a song in the style of Lennon-McCartney, or paint in the manner of Banksy, without infringing copyright, because copyright protects specific expression, not general style or feel. That principle hasn't gone away, but the AI context is creating new pressure on it for several reasons.

First, the scale is unprecedented. A human composer spending years learning to write in the style of a particular artist is one thing. An AI that can generate thousands of tracks indistinguishable from that artist's output, trained on that artist's recordings without their consent, is quite another. Courts and regulators are increasingly being asked to consider whether that distinction matters, and in many cases they are concluding that it does.

Second, the training data question is becoming central. In the United States, several major lawsuits are either ongoing or have reached early decisions regarding AI companies scraping copyrighted material to train their models. The record labels Sony Music, Universal Music Group and Warner Music Group filed a lawsuit against AI music generation services Suno and Udio in 2024, specifically alleging that these services were trained on copyrighted recordings without licence. A music attorney whose video circulated recently made precisely this point: the challenge isn't just about the output sounding similar, it's about whether the process of creating that AI capability infringed copyright at the training stage.

Third, voice and likeness rights are a separate and growing area of protection. Creating an AI that replicates the voice of a living artist is not just a copyright question, it is a personality rights question, and several US states have already passed or are passing legislation specifically targeting AI voice cloning of performers. The UK is watching this closely.


What about the UK specifically?

The UK copyright framework does have some AI-specific provisions that other countries lack. The Copyright, Designs and Patents Act 1988 includes provisions for computer-generated works, giving copyright in those works to the person who made the arrangements necessary for the creation. However, the UK Intellectual Property Office has been consulting on AI and intellectual property for several years, and the direction of travel is towards greater protection for original creators rather than less.

The broader point is that the UK is not a safe harbour simply because the most high-profile cases are in the US. If you are building a UK business around AI content, the content itself may well involve underlying IP from artists, labels, or publishers who are protected globally, and the legal exposure follows the content, not your postcode.


So what should entrepreneurs actually do?

The honest position is that this is not an area to build a business on top of a loophole. Loopholes in IP law have a way of closing, often retroactively in terms of their commercial impact, and the direction of travel here is clear.

That said, there is a genuinely exciting and legitimately safe version of this business. Here is what that looks like.

Work with artists who want to collaborate with AI, rather than replacing or replicating artists without consent. There is a growing community of musicians, visual artists and performers who are actively interested in AI as a creative tool, and who want to explore it with proper commercial arrangements in place. Building a platform that connects that community, or that showcases AI-assisted work with full rights clearance, is a real business.

Use AI tools that have clear, auditable licensing. Some AI music platforms have invested in licensed training data and have transparent terms about commercial use of outputs. Knowing which tools these are, and being able to demonstrate that your content comes from them, is meaningful protection.

Be cautious about anything that involves replicating the sound, face or voice of a recognisable real person without explicit consent. This is the highest-risk territory and the most active area of litigation.

Get proper legal advice before you build, not after. An hour with an IP solicitor who understands AI and content licensing is worth infinitely more than a year of building something that has to be torn down.


The bigger picture

The community response to the original post touched on something important: the domain name isn't really the asset here, the content strategy is. A domain is easy to buy and easy to lose value on. A content business built on unclear IP foundations is not just a legal risk, it is a commercial risk, because the moment this area crystallises legally (and it will), platforms, advertisers and payment providers will tighten up fast.

The most successful entrepreneurs in this space will be the ones who took the compliance question seriously early, built relationships with rights holders rather than trying to work around them, and positioned themselves as trusted curators rather than grey-area aggregators.

And yes, the fact that this article was drafted with AI assistance is exactly the point. The tools are powerful, useful, and increasingly part of how content gets made. The question is never whether to use them, it is whether you have thought carefully about the rights, the risks, and the responsibilities that come with them.

That thinking is free. The litigation, less so.




This article reflects the state of an evolving legal landscape as of April 2025. It is not legal advice. If you are building a business in this area, consult a qualified IP solicitor.
Staff
Northampton, UK
In my day job I'm the founder of Business Data Group as well as UK Business Forums (UKBF).

UKBF exists as a place for people who, like me in my early self-employed career, feel out of their depth or worried they are making the right decisions... or simply as a place for discussion and advice for those who don't have anyone around them to ask questions or sanity check a thought process.