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Simone Vannuccini's avatar

From an economic viewpoint, a pirated book used by a student for an exam is an input to the production of an outcome (mark) that remains limited to the student. The pirated book used by an AI company is an input to the production of a product that (i) might compete with book creators and (ii) feeds growth of the company's market power. Hence, in the latter case the goal is external to the company that produces negative spillovers, and the unduly advantage obtained by not bearing the input cost can be considered as a practice of unfair competition! One could say: well, if the student learns more than her/his/their colleagues than that's also an advantage. But to compare one atomistic unit (the student) in a large market (the class or the future Labour market) and a company in an oligopolistic setting is not a proper comparison. So, yes, AI companies' copyright infringement is worse in terms of social welfare compared to individual ones!

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Chintan Zalani's avatar

Your prediction about the complexity proved spot on with the recent Anthropic ruling. The judge found AI training itself to be fair use, but Anthropic still faces a December trial over using millions of pirated books to build their training library. I guess the implications around AI training will just keep unraveling over time.

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