Prime Minister's millionaire AI adviser who could 'profit from shake-up' of copyright laws

A millionaire tech guru who helped mastermind the Government's AI strategy could profit from the controversial proposals he is backing.Venture capitalist Matt Clifford was hired as an adviser to Sir Keir Starmer on AI and tasked with crafting a plan to utilise the technology.He supports an exception that would allow tech giants to ignore copyright law when training their AI systems, something the Mail has now launched a major campaign in opposition of.On entering government last year, Mr Clifford was not forced to relinquish significant investments in dozens of tech businesses – including those that back AI.He is still listed as chairman of Entrepreneur First, the firm he founded which boasts of investing in tech companies now worth billions. It has a vast portfolio including more than 100 AI start-ups that experts suggest could benefit from Mr Clifford's AI Opportunities Action Plan published last month, which includes the copyright exception. Mr Clifford was not forced to relinquish significant investments in dozens of tech businesses – including those that back AI, when he entered government last year Mr Clifford declined to comment but it is understood that he did give up some companies that could have directly benefited from his advice. Sources suggested the Government would have struggled to recruit any worthwhile AI adviser if they were forced to divest all of their interests.Sir Keir hired Mr Clifford as lead reviewer of the AI Opportunities Action Plan in the Department for Science, Innovation, and Technology (DSIT) days after coming to power last July.Last month he was made the Prime Minister's personal 'AI opportunities adviser' and collated the 50-point action plan – which included the copyright exception. It is understood Mr Clifford did not write the copyright proposal, though he backs the plan.But experts say he could stand to profit from the proposal given Entrepreneur First's investments. Sue Hawley, executive director of Spotlight on Corruption, said: 'There couldn't be a clearer conflict of interest than having an AI adviser who could stand to benefit personally from policies he recommends to the Government.'These conflicts must be very proactively mitigated, including through divesting in firms he has invested in.'Entrepreneur First's chief operating officer, Tom Shinner, is also part of a lobbying group leaning on the Government to push through the AI copyright exception. Sir Keir hired Mr Clifford as lead reviewer of the AI Opportunities Action Plan in the Department for Science, Innovation, and Technology days after coming to power last JulyA senior music industry source told the Mail: 'This guy holds numerous stakes in multimillion-pound AI investments – he's like the tech oligarch for the UK. And yet he's allowed to walk the corridors of power and write the Government's AI strategy.' Ministers are proposing changing existing laws so tech giants can use any online material, such as text, images or music, to improve their AI models – without respecting current copyright laws that ensure its creators get paid.Instead, creators would have to 'opt out' of having their work exploited in this way.Read More Q&A: What are Labour's plans on AI and copyright? All you need to know about the alarming proposals But Britain's £126billion creative industry has warned the plans risk ruining a sector that employs 2.4million people.Now our revelations raise potential conflict of interest concerns over Mr Clifford's investments. Mr Shinner is on the steering committee of Startup Coalition, a tech lobbying group that is pushing for the AI copyright exception. Two weeks ago they gave evidence at a Department for Culture, Media and Sports committee hearing calling on the Government to adopt the policy.Vinous Ali, of the Startup Coalition, said the group favoured an option whereby creators are not even able to 'opt out' of AI firms scraping their material for free.Mr Ali said they favour a 'broad data-mining exception' permitting commercial use subject to few or no restrictions.Tory Damian Collins, former chairman of the culture committee, said: 'Who in the highest levels of government speaks for rights holders and creatives, as Matt Clifford does for the AI industry? You can't deliver growth just by allowing one sector to take from another.'A DSIT spokesman said: 'We are committed to developing a clear and trusted copyright regime, which is why we're consulting on ways to protect the interests of both AI developers and right holders.'No decisions will be taken by Matt Clifford – ministers are the decision makers.'