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Saudi Arabia Tightens Copyright Rules for AI Developers

By Tech Desk · 2026-09-15 · 3 min read
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New Saudi regulations introduce specific compliance burdens for AI companies, requiring detailed record-keeping and limiting commercial use of copyrighted data.

Saudi Arabia has formally implemented new regulations that reshape how artificial intelligence companies can use copyrighted material. The rules, published in the official gazette on July 31, 2026, supplement a broader copyright law that entered into force in August. While the framework allows developers to use lawfully published works for training purposes without immediate payment, it imposes strict conditions on how that data is handled and stored.

According to reporting from GN technics/ai (en-US), the primary catch for businesses is a shift from broad permission to detailed compliance. Developers can no longer simply ingest data; they must now prove that their usage is limited to necessity and that it does not harm the original author’s ability to earn income. This creates a new layer of legal complexity that requires careful internal auditing.

Strict Conditions For Data Use

The regulations permit the use of copyrighted works for AI development only under specific circumstances. The material must be lawfully acquired, and any copying must be strictly limited to what is necessary for the algorithm’s development. Crucially, the rules prohibit using the data for republication, distribution, or direct commercial exploitation of the underlying work. This means that while the model can learn from the data, the resulting product cannot simply reproduce the source material in a way that competes with the original creator.

There is a significant trade-off regarding commercial contexts. The text suggests that using copyrighted works in a purely commercial setting is restricted unless the use is non-substantial or does not affect the work’s normal market exploitation. However, the scope of this restriction remains unclear. It is ambiguous whether this targets AI outputs that reproduce large chunks of copyrighted text or if it broadly bars commercial developers from using the training exception at all. This ambiguity poses a risk for companies operating in the Kingdom.

Record-Keeping And Compliance Burdens

Developers are now required to maintain detailed records of every copyrighted work used in their training processes. These logs must include the type of work, its source, the specific purpose of its use, and the date. Authorities can request these records at any time. However, the regulations do not specify the level of detail required, leaving it unclear whether companies must track individual files or aggregated datasets.

Furthermore, the rules are silent on how long these records must be kept and what format they should take. This lack of clarity forces companies to adopt a conservative approach to data governance to avoid potential violations. The uncertainty means that legal teams must prepare for potential requests from the Saudi Authority for Intellectual Property, adding administrative overhead to the development cycle.

Unclear Rules For Model Outputs

A major point of confusion involves how these rules apply to the final AI models themselves. The regulations prohibit incorporating copyrighted works into final products if it is unnecessary, but they do not clearly define how this applies to machine learning architectures. It is unclear whether training data that is not retained in recognizable form within a deployed model still counts as “inclusion.”

This gap leaves a significant question open: does the mere act of training on copyrighted data violate the spirit of the law if the model later generates similar text? Until further guidance is provided, companies face a difficult choice. They may need to filter out certain types of data to ensure compliance, potentially limiting the quality or scope of their models. The ambiguity highlights a broader challenge in applying traditional copyright concepts to modern machine learning technologies.

Based on reporting by Latham & Watkins LLP, compiled by the Tradingbird desk.

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