However, the government's position is now unclear, saying it "no longer has a preferred option" for what to do next.
Chief executive of UK Music Tom Kiehl hailed the development as "a major victory for campaigners" and said it will work with government.
Kendall said the government had "engaged extensively" with people in the creative and AI industries.
It is attempting to balance the interests of the two sectors by giving creatives control of how their work is used, while recognising AI models need to be trained on work such as writing, music and video.
In a report published on Wednesday, external, the government said there was "no consensus on how these objectives should be achieved".
In a separate impact assessment, external, it recognised the contributions both the creative sector and the AI industry make to the UK economy.
The assessment said UK culture is a "world-leading national asset", while the AI industry is growing "23 times faster than the rest of the economy".
The technology secretary's announcement followed a consultation on the issue, which concluded the government's initial plan was overwhelmingly rejected by the creative sector.
But there was no firm conclusion on what happens next, with the government saying it would not reform copyright laws "until we are confident that they will meet our objectives for the economy and UK citizens".
Disclaimer
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