The UK’s music industry’s position as a global leader is under threat due to unregulated artificial intelligence (AI) and barriers to global exports, a report demanding government action finds.

Despite UK Music’s annual economic report, This Is Music 2025, finding that the sector contributed a record £8 billion (Gross Value Added) to the UK economy in 2024, it notes that last year’s growth halved from the double-digit post-pandemic recovery experienced each year since 2021 to just 5%.

Amid this levelling off, UK Music chief executive Tim Kiehl has called on policymakers to take action.

In his foreword to the findings, Kiehl singled out “the status quo” of unregulated AI and barriers to global exports as being “tilted against music’s interests”.

He welcomed ministers’ acknowledgement of music as a high-growth sub-sector, but added: “Ultimately, the government needs to be judged in terms of the progress it makes”.

UK Music surveyed 1,306 music creators for the report, with more than 90% of respondents supporting the introduction of AI protections to prevent their work from being used without permission or payment.

This, the report says, “sends a clear message to the technology sector and government about what is required”.

Recomendations

In its recommendations, the report calls for the government to take “specific steps” to remove obstacles to growth, including rejecting any copyright exception that “undermines the basic principle for how music is used and compensated for” and introducing legal obligations on AI developers to disclose copyrighted works used in training.

Suggestions also include establishing a legal requirement for the clear labelling of AI-generated music, ensuring that companies accessing UK markets comply with UK laws on AI and copyright, and exploring personality rights to provide individuals with legal protection for the use of their image, likeness, voice, and personal identity.

The second “overarching” issue challenging the sector, UK Music finds, are restrictions and competition hampering global exports.

Although UK music exports were £4.8bn in 2024, up 5% from 2023, the report suggests that growth had slowed in line with the global music market, with fewer major tours and no UK artists making it into the top 20 most-streamed artists globally in 2024.

Of those surveyed, 32% said they were affected by the UK leaving the EU in 2024, up 4% from 28% in 2023, with 95% of those affected experiencing a decrease in earnings in 2024, up from 87% in 2023.

To improve the situation, UK Music says government must secure an agreement with the European Union (EU) to remove barriers to cultural exchange, such as visa and work permit requirements.

Across the pond, the report also points to a rise in fees and bureaucracy UK artists must deal with when entering America, compounded by a 250% increase in visa costs from April 2024.

The report suggests ministers must ensure the interests of the UK music industry are protected in any trade deals and tariff negotiations.

It also calls for a taskforce to develop an international strategy for music in the face of increased global competition.

Longer development cycles and back catalogue dominance

Despite the successes of 2024, including major UK tours from Taylor Swift and Bruce Springsteen, and record employment in the sector, with 220,000 full-time equivalent posts, the findings stress “underlying” and “urgent” issues.

The report notes threats to the grassroots ecosystem, highlighting how both venues and recording studios are also under pressure.

Furthermore, the report finds that longer artist development cycles are also affecting the sector, as the time taken from first release to nomination for the Best New Artist category at the 2025 Grammys increased from around 2 years in 2001 to 7.8 years in 2025, according to music industry directory ROSTR.

Artists are taking longer to build audiences in the age of streaming, in part because listeners are favouring back catalogues, according to the findings.

“The UK has the greatest artists, songwriters, producers and music companies in the world,” said Kiehl, adding that these musicians and businesses are a “crucial part” of the artist development cycle.

Welcoming government’s commitment to a £30m Music Growth Package, he said it was “vital” that these “much-needed funds” are channelled to boost this cycle.