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AI Companies Battle Over Europe's AI Act as Creatives Push Back

Feb 28, 2025 - variety.com
Nine months ago, the European Union passed the AI Act, the first law aimed at regulating artificial intelligence technology. A key aspect of the law is the requirement for AI companies to notify rightsholders when their works are used as training data, a measure that has sparked controversy among AI companies like OpenAI, Meta, and MistralAI. These companies argue that the law creates a burdensome environment and stifles innovation. The law also mandates that AI-generated content be labeled as such. As the implementation date approaches, tensions rise between AI companies and rightsholders seeking compensation for the use of their works.

The debate over AI regulation is not limited to Europe. In the U.S., OpenAI faces legal challenges over copyright infringement, and similar cases are emerging worldwide. The EU's "text and data mining" exception allows rightsholders to opt out of having their work used for commercial purposes, prompting some to do so. However, many rightsholders feel inadequately protected and demand compensation for past and future use. The AI Act's transparency requirements aim to foster a symbiotic relationship between AI companies and content creators, but the path to achieving this balance remains contentious.

Key takeaways:

  • The EU's AI Act requires AI companies to notify rightsholders when their works are used as training data, sparking debates over transparency and compensation.
  • AI companies, including OpenAI and Meta, criticize the AI Act for potentially hindering innovation, while rightsholders demand protection and remuneration for their works.
  • France plays a significant role in the AI regulatory landscape, balancing its strong copyright laws with ambitions to be a major AI innovation hub.
  • There is ongoing tension between AI companies and content creators over the use of copyrighted material, with calls for more licensing agreements and transparency.
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