Understanding Ownership of AI Created Works in UAE Law 2025 Insights for Business

MS2017
Expert UAE legal advisors help businesses secure ownership of AI-generated content under the latest laws.

As artificial intelligence (AI) transforms how organisations across the United Arab Emirates (UAE) create, manage, and distribute content, questions surrounding legal ownership, authorship, and rights management have never been more pressing. With businesses increasingly leveraging AI tools for content creation, marketing, design, and innovation, understanding the legal framework governing AI-generated works is now critical for legal compliance, IP risk mitigation, and corporate governance. The 2023–2025 period has witnessed significant regulatory activity in the UAE aimed at clarifying the rights and obligations related to AI and intellectual property (IP), with broad implications for companies, HR managers, creative teams, and legal practitioners. This article presents a comprehensive, consultancy-grade analysis of who owns AI-generated content under UAE law, focusing on recent legal updates, practical risks, and forward-looking compliance strategies.

This issue is particularly significant given the UAE’s position as a regional leader in AI adoption and digital transformation. All stakeholders—businesses, government entities, and individuals—need to proactively align with evolving legal standards to safeguard their intellectual property and ensure ethical, legal use of AI technologies. This piece synthesises official government sources, including regulations from the UAE Ministry of Justice, Cabinet Resolutions, and Federal Decrees, to guide organisations through the emerging legal terrain.

Table of Contents

Understanding UAE’s Intellectual Property Regime

The UAE’s legal system offers robust protection for intellectual property, drawing on federal legislation as well as alignment with international treaties such as the Berne Convention and TRIPS Agreement. At the centre of the discussion on AI-generated content is Federal Decree-Law No. (38) of 2021 on Copyrights and Neighbouring Rights (the “Copyright Law”), which replaced the earlier Federal Law No. (7) of 2002. This law is administered by the Ministry of Economy and underpins most IP protection relating to literary, artistic, and other creative works.

Crucially, these laws define the concept of authorship, copyright ownership, and moral rights—concepts that become complex when autonomous AI systems are involved. The spectrum of potential content includes text, software code, images, and designs produced with little or no human input.

Under UAE law as of 2025, legal authorship and ownership are generally reserved for natural persons (humans) or legal entities (such as companies)—not for machines or autonomous systems. The Copyright Law, Article 2, recognises an “author” as the person who creates the work. While AI systems can produce content, the law does not yet acknowledge AI as a rights holder or author, which means any rights in AI-generated works must vest in the party (human or corporate) responsible for the input, operation, or commissioning of the AI system.

These principles are echoed by the UAE Ministry of Economy’s IP Department and aligned with guidance from the UAE Government Portal and official gazettes. Therefore, the legal focus is on identifying the human or entity associated with the AI’s operation and creative direction.

IP Rights under UAE Law and the Role of Authorship

Defining Authorship and Ownership for Generated Works

The UAE Copyright Law stipulates that authorship carries the initial rights in a work, with copyright protection arising automatically upon creation, regardless of registration. However, when AI is involved, the key legal questions are:

  • Who is considered the “author” of AI-generated content?
  • Can the individual who operates or instructs the AI claim ownership?
  • What happens with fully autonomous content, produced with minimal human guidance?

Commissioned and Employer-Employee Works

The law provides some clarity for works created “for hire” or within the scope of employment. According to Article 9 of Federal Decree-Law No. 38 of 2021:

  • Where a work is created by an employee in the course of their duties (for example, a marketing manager devising AI-powered campaigns), the employer is generally considered the rights holder unless otherwise agreed.
  • Where a work is commissioned by a company or individual, the commissioning party may hold economic rights if contractually stipulated.

Currently, there is no recognition of AI as a legal person under UAE law. The Copyright Law and related ministerial guidance exclusively refer to natural and legal persons. This means rights cannot be vested in algorithms, software tools, or autonomous systems regardless of their output sophistication.

Ownership Scenarios for AI-Generated Content

Given the above legal framework, who owns AI-generated content in practical business scenarios? The following breakdown provides clarity.

Scenario 1: Employee Uses AI During Employment

An employee generates marketing materials or reports using a generative AI tool. Here, the employer typically owns economic rights if the work is produced:

  • Within the scope of employment, or
  • Using company resources or time

The employee retains limited moral rights, such as the right to attribution (unless waived by contract).

Scenario 2: Contractor or Outsourced AI Content Creation

If a consultant or agency uses AI to deliver work:

  • The contract terms govern. Companies should ensure IP assignment clauses specify transfer of all rights—including AI-generated content.
  • Absent clear agreement, the default law may allow the contractor to retain ownership, exposing the business to risk.

Scenario 3: Fully Autonomous AI Output

When content is generated with minimal human involvement (e.g., a brand uses AI to write social posts on autopilot), the law is less explicit. However, our analysis suggests businesses should:

  • Ensure that a human or entity is identified as the operator, controller, or commissioner of the AI system.
  • Maintain clear documentation evidencing the decision-making or input provided.

Scenario 4: Use of Third-Party AI Platforms

Most generative AI platforms (e.g., ChatGPT, image generators) impose license restrictions and usage terms. These affect content ownership, as users might:

  • Only receive a licence to use output for commercial or personal purposes, but not exclusive ownership.
  • Be subject to further IP claims if the AI was trained on third-party protected data.

Key Legislative and Policy Developments

  • Cabinet Resolution No. 6 of 2023: Provides new guidance on digital works and explicitly references the role of automation but stops short of treating AI systems as authors. Clarifies that employers and commissioning entities may claim ownership in works substantially generated by AI, provided there is material human supervision or a contractual link.
  • UAE National Strategy for Artificial Intelligence 2031 (launched 2023): Emphasises fostering legal clarity for AI adoption, prioritising IP protection and creating sandboxes for AI innovation under regulatory oversight.
  • UAE Ministry of Justice advisory (2024): Stresses the importance of contractual clarity and the need for every organisation using AI to maintain a clear chain of title for generated works.

Implications of the 2023–2025 Amendments for Businesses

The shift towards explicit recognition of human input and contractual control as the anchor for IP rights means businesses operating without clear internal policies or contracts risk losing ownership or facing future disputes.

Comparing Old vs New Laws: UAE AI Content Ownership (Table)

Aspect Pre-2021 Law 2021–2025 Updates
Authorship Recognition Natural persons only Explicit exclusion of AI as author; focus on responsible human/entity
Employer-Employee Works Employer owns economic rights by default Reaffirmed, with new guidance on AI-assisted output
Commissioned/Outsourced Works Dependent on contract, less explicit about AI Contracts must address AI-generated content ownership directly
Entirely AI-Generated Content No guidance Ownership vests in human/entity directing or commissioning the AI
Government Policy No mention of AI AI policy emphasises IP protection and chain of title

Suggested Visual: A chart or infographic summarising these legal shifts for stakeholder presentations.

Practical Insights and Case Studies

Case Study 1: Corporate Marketing Department Uses AI Writer

Facts: An internal team uses a paid AI tool to generate blog posts and advertising copy for a UAE-based retail brand.
Legal Question: Who owns the copyright to the produced content?

Consultancy Insight: Under Article 9 of the Copyright Law and in light of Cabinet Resolution No. 6 of 2023, the employer holds economic rights, assuming the employee acts within the scope of employment and clear records are kept. However, internal policy should explicitly state that all work—including AI-assisted output—is the property of the company.

Case Study 2: Start-up Hires Designer Who Relies on AI Tools

Facts: The freelance designer submits a set of images and videos largely generated using commercial AI software.
Legal Question: Does the start-up own the works outright?

Professional Guidance: Ownership depends on contract terms. Businesses must require explicit IP assignment clauses covering AI-generated material. Otherwise, the designer may retain rights or be unable to assign because of the underlying AI tool’s licence terms.

Case Study 3: Dispute Over AI-Generated Music Tracks

Facts: Two collaborators use an online AI music generator. Later, one partner claims sole ownership of certain tracks.
Legal Insight: In the absence of express agreement, both users may be considered co-authors (if human creativity or direction was involved). If automated, the user directing the AI or uploading prompts should be recorded. Proper contracts and logs are essential.

Risks of Non-Compliance and Dispute Scenarios

  • Loss of IP Ownership: Failure to clearly assign rights to AI-created content can lead to unexpected loss of valuable assets, especially with contractors or freelancers.
  • Litigation Risk: Competing claims over authorship may result in costly disputes or reputational harm, particularly where employees depart or collaborate on content.
  • Regulatory Penalties: Non-compliance with IP assignment rules, including improper use of copyrighted material, exposes businesses to fines as outlined in Federal Decree-Law No. 38 of 2021 and subsequent resolutions.
  • Third-Party Infringement: Unauthorised use of content (e.g., generated from AI learning on copyrighted data) can expose companies to infringement claims from original rights holders.
  • Data Protection Issues: AI tools that input or output personal data could inadvertently violate UAE Personal Data Protection Law (Federal Decree-Law No. 45 of 2021) if not properly managed.
Indicative Penalties for IP Non-Compliance under UAE Law
Offence Relevant Law Potential Penalty
Copyright infringement Federal Decree-Law No. 38/2021 Fines up to AED 100,000; possible closure of business
Failure to assign IP in contract Contract Law + Copyright Law Loss of economic rights; civil liability
Software/data misuse Cybercrimes Law Fines; criminal prosecution

Suggested Visual: Compliance checklist for AI content projects (who creates, who controls, contractual terms, audit trail).

Compliance Strategies for UAE Organisations

1. Implement Robust Internal AI Content Policies

  • Develop written policies stating that all work product, including AI-assisted or -generated work, is owned by the employer or commissioner unless expressly exempted.
  • Regularly update policies to reflect the latest legal amendments and ministry guidance.

2. Strengthen Contracts and Work-for-Hire Agreements

  • Ensure all employment, contractor, and third-party service agreements contain clear, AI-specific IP assignment clauses.
  • Explicitly require transfer of any and all rights in AI-generated content.

3. Monitor and Document AI Usage

  • Maintain comprehensive logs showing who operates, supervises, or commissions AI outputs.
  • Use project management tools to record decisions and inputs supporting authorship or ownership claims.
  • Have legal counsel review contracts, policies, and AI tool licences to identify gaps or risks.
  • Audit use of external AI platforms for hidden IP or data restrictions.

5. Adopt Ethical and Compliance-Driven AI Procurement

  • Select AI tools with transparent data sources, training datasets, and usage licences.
  • Monitor regulatory updates from the UAE Ministry of Economy, Ministry of Justice, and Official Legal Gazette for policy changes affecting AI use.

Suggested Visual: Process flow diagram for AI content project from conception to IP assignment and audit.

Conclusion: Future Outlook and Recommendations

The legal landscape for AI-generated content in the UAE is experiencing rapid evolution, with recent laws and official guidance providing greater clarity for businesses, but also heightening compliance stakes. As of 2025, AI remains strictly a tool—without legal personhood—while the associated human or corporate actor retains responsibility and ownership for the output. Employers, commissioning parties, and AI operators must take active steps to safeguard their intellectual property through internal policy, contractual precision, and vigilant IP management.

Looking ahead, the growth of AI-driven industries will continue to test the adequacy of existing law. We anticipate further legislative updates, potentially around AI liability, transparency, and even possible future debates about granting limited legal status to autonomous systems. For now, best practice—strongly endorsed by the UAE’s ministries—is clear contractual and operational alignment: ensure that for every piece of AI-generated content, the responsible person or entity is unmistakably identified, rights are expressly assigned, and audit trails are maintained.

In summary, the proactive, compliance-focused approach to managing AI-generated content will position UAE businesses for success, innovation, and resilience in a complex digital era. Senior executives, HR leaders, and legal practitioners are encouraged to stay informed, conduct regular reviews, and consult with specialised legal advisors to remain ahead of regulatory developments and protect organisational interests.

Share This Article
Leave a comment