Saudi Copyright Law and AI: What Businesses Must Do

Saudi copyright law and AI now sit in the same sentence. A new Copyright Law came into force on 12 August 2026, and Baker McKenzie describes its AI provision as one of the first of its kind in the GCC. For owners and managers in Dammam, Khobar, Riyadh and Jeddah, most of the headlines are about AI developers. But the same law also decides who owns the content your staff, agencies and tools produce. This guide explains the parts that matter to an ordinary company, and what to check this month. It is a business briefing, not legal advice.

Saudi copyright law and AI: what changed

Baker McKenzie reports that Royal Decree M/169 approved the new Copyright Law, following Cabinet Decision 560/1447 of 27 January 2026. The text was published in the official gazette on 13 February 2026 and replaces the 2003 law from 12 August 2026. Latham & Watkins adds that the Implementing Regulations were published in the gazette on 31 July 2026.

Both firms highlight a new AI provision. Article 26(4) of the Law allows works to be copied, without permission or payment, to develop AI products and algorithms. The work must have been lawfully published, the copy lawfully acquired, and the copying limited to what is necessary.

The AI training exception: a developer rule with conditions

This exception is about building AI, not using it. If you only use ready-made tools, it is unlikely to apply to you directly. It matters if you train or fine-tune a model on your own or on purchased content, for example a custom assistant built from your documents.

According to Latham & Watkins, Article 30 of the Regulations adds conditions. Copying must not extend to republication, distribution or direct commercial exploitation of the work, and it must not unjustifiably harm the author’s legitimate interests. Developers must also record the type of work, its source, the purpose and the date of use, and give those records to the competent authority on request.

Latham & Watkins also flags open questions: how far the commercial-use limit goes, how detailed the records must be, and how the rules apply to models. Gowling WLG expects the meaning of “necessary” to be tested through enforcement. In plain terms, keep records and expect further guidance from the Saudi Authority for Intellectual Property (SAIP).

Who owns AI-generated content?

Latham & Watkins notes that neither the Law nor the Regulations address ownership of AI-generated works. Gowling WLG’s reading is that content generated autonomously, with no meaningful human input, would likely not qualify for copyright. That is a law firm’s view, not a court ruling, but it points in a clear practical direction.

If your marketing copy, product descriptions or reports come straight from an AI tool, you may have little to stop a competitor reusing them. Material a person has directed, edited and approved is on firmer ground. Keep a short record of who reviewed what.

Employees, agencies and software contracts

Baker McKenzie reports that works created by an employee in the course of employment and related to the employer’s business belong to the employer by default. Commissioned works stay with the author by default unless the parties agree otherwise. That reverses what many companies assume when they hire an agency, a freelance designer or a developer. Parties can change these defaults by agreement.

Baker McKenzie also says software licences, including click-wrap and installation-time licences, are now expressly enforceable by statute. That makes it worth reading the terms of the AI tools your team signs up to, since staff often accept them without review.

Penalties are higher

Gowling WLG reports that the maximum fine rises to SAR 1,000,000 from SAR 250,000, and maximum imprisonment to one year from six months. Repeat offences within three years may attract doubled penalties. SAIP can accept a settlement of up to SAR 2,000,000 before a case goes to the Public Prosecution, and rights holders can also bring civil claims for damages directly.

SAIP’s 2025 annual report records 11,593 website infringement reports and over 4,800 optional copyright registration requests, up 87% on the previous year. Registration is optional, but more creators are using it.

A six-step checklist for your business

• List where AI creates content for you: marketing, product pages, proposals, reports, translations and code.
• Add a human step. A named person edits and approves anything published or sent to a client.
• Review contracts with agencies, freelancers and developers. State in writing who owns the work and what happens to files, prompts and source code.
• Check employee contracts. Confirm that work created for the business is covered and that staff know the rules for using AI tools.
• Read the terms of every AI tool you pay for: what it does with your uploads, and what you may do with its output.
• If you train or fine-tune a model, keep a log of each source, its purpose and the date, and get legal advice before using third-party content.

How Scalor Systems can help

Start by knowing where AI touches your content and data. Our AI Architecture Audit maps your processes and tools and flags the risks. Our AI Knowledge Assistant solution answers staff questions from your own approved documents, and our AI Integration service puts review steps into the workflows you already run. If you are weighing regulation more broadly, read our guide to the SDAIA AI risk management framework. To discuss your own plan, book a free discovery call with Scalor Systems at scalorsystems.com/contact.

Sources

1. Baker McKenzie: Saudi Arabia: New Copyright Law Modernises KSA IP Framework (20 July 2026)
2. Gowling WLG: Saudi Arabia Copyright Law 2026: key changes and what businesses need to know (30 March 2026)
3. Latham & Watkins: Saudi Arabia’s New Copyright Regulations: What AI Companies Should Know (15 September 2026)
4. Saudi Authority for Intellectual Property (SAIP): 2025 annual report announcement