Briefing: March 28, 2025

Luxury Brands Respond to UK’s AI Proposal, H&M Debuts Digital Models & Amazon Releases its Brand Protection Report

 

Luxury Brands Slam Labour’s “Damaging” AI Copyright Proposal

The luxury industry group whose members range from Chanel and Burberry to Aston Martin, Rolls-Royce, and The Dorchester has spoken out against the Labour party’s proposed copyright reform that would allow AI firms to train on copyrighted material without permission unless rights-holders opt out. Walpole, the industry group representing 250 major brands, warned the £80 billion luxury sector could be severely harmed by what it calls a “damaging proposal.”

Helen Brocklebank, Walpole’s CEO, urged the government to rethink the plan, arguing it risks undermining the UK’s legal and creative framework and threatening future growth. The proposal has triggered widespread backlash from the £126 billion creative industry, with critics saying it enables copyright theft and could erode creative integrity. Brocklebank also questioned the viability of an opt-out system and criticized the government’s rationale for aligning with outdated EU policy.

This comes on the heels of the close of a UK government-launched consultation on copyright and AI, which ran for 10 weeks until Feb. 25. “The consultation considers a range of approaches, [but] the key proposal is to permit wider use of copyright materials in the UK to train AI models, while respecting the rights of content owners who wish to ‘opt out’ of this regime,” Linklaters stated in a note. “This mirrors the current position in the EU and appears to be part of a trend towards closer cooperation with the EU under the new Labour government.”

Luxury Brands and U.S., UK Trade Negotiations

Not the only matter on Walpole’s agenda at the moment, representatives for the group were in the U.S. this month amid “delicate diplomatic trade negotiations between Britain and the United States,” according to the Times. North America is a crucial market for British luxury, both through high-end British goods sold in the US and affluent American tourists visiting the UK. As the second-largest export market for British luxury after Europe, North America accounts for 22 percent, or £12.3 billion, of all UK high-end goods exports, according to research by Frontier Economics.

H&M Rolls Out AI-Generated Fashion Models

H&M is turning to artificial intelligence to reimagine fashion marketing, launching a new campaign featuring AI-generated “digital twins” of real models. Partnering with agencies, the retailer has created digital replicas of 30 models using advanced imaging technology. These avatars will appear in ad campaigns across social media and other platforms, wearing real H&M clothing—without ever stepping into a studio.

While the move promises “efficiency and creative flexibility,” it raises complex questions about compensation, labor displacement, and creative rights. H&M says the digital twins will be used with model consent, and models will be paid for their likenesses, but the company admits many details—like how traditional roles in fashion shoots may be affected—are still being figured out. As AI transforms content production, this campaign signals both the potential and ethical challenges of replacing human creatives with digital counterparts.

Such efforts have not come without backlash. You may recall that in 2023, Levi’s announced a partnership with Dutch digital fashion studio Lalaland.ai to explore the use of AI-generated models as a way to “supplement human models” and promote a more inclusive, personalized, and sustainable shopping experience. However, the initiative sparked backlash, with critics accusing the brand of avoiding real investment in diversity by opting for digital models instead of hiring real people.

Essentially forced to explain itself shortly thereafter, Levi’s released a statement, saying that the pilot was never intended as a substitute for genuine diversity efforts. The company emphasized its continued commitment to live photo shoots, the use of real, diverse models, and authentic storytelling, which it described as central to the brand’s identity.

Amazon Highlights Anti-Counterfeiting in Brand Protection Report

In its fifth Brand Protection Report, Amazon says it identified, seized, and appropriately disposed of more than 15 million counterfeit products worldwide, while outlining progress in several key areas in its “mission to protect brands, selling partners, and consumers from bad actors throughout the supply chain.”

> “With over $1 billion invested and thousands of experts, including AI scientists and investigators, working behind the scenes,” Amazon says that it has made “significant strides in proactively stopping bad actors.”

According to Amazon, key wins from 2024 include: Leveraging AI to block over 99% of suspected infringing listings before they reach customers; verifying more than 2.5 billion authentic products through its Transparency program; and dismantling global counterfeit rings through its Counterfeit Crimes Unit in collaboration with brands and law enforcement.

And in one of the various testimonials of sorts in the report, Zach Toczyński, Sr. Director, Global Brand Protection, Levi Strauss & Co., is quoted as saying, “Levi Strauss & Co. has enjoyed a strong and productive long-term partnership with Amazon’s brand protection team. Over the years, their collaborative approach has been instrumental in protecting our iconic brands – including Levi’s®, Dockers®, Beyond Yoga® and Signature by Levi Strauss & Co. We commend Amazon for their dedication and the excellent results we’ve achieved together. This partnership is a key component of our global brand protection strategy, and we look forward to continuing our work together in the years to come.”