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They frame it as though it's for user content, more likely it's to train AI, but in fact it gives them the right to do almost anything they want - up to (but not including) stealing the content outright.
I'm not against AI but the rules have to be in laws and regulations. First, AI can't use copyrighted material without paying for it. It can't either use material without asking individually.
The second point is that AI can't created copyrighted material. Whatever an AI created, it's free of copyright and everyone can use it.
Third, an AI can't be a blackbox. It has to be comprehensive how it works and what the AI is doing. A solution would be to have source available code.
Fourth, AI can't violate laws, create and push misinformation, and material used for misinforming.
And, of course, anything created using AI has to be indentified as such.
The money is in what the AI can do, the quality of the result, and the quality of the code. All the other things isn't valuable.
I imagine that if AI devs didn't sneak around copying people's works in bulk but instead asked for permission or paid for a license, artists wouldn't hate it like they do now.
My gut feeling says that's not entirely true. Generative AI has so many qualities that make could it offensive to so many people, I think we were going to see a pushback from artists regardless. The devs' shitty training practices just happened to give the artists a particularly strong case for grievances.
I'm fine with this as long as the "pay & ask" has an exception for non-commercial, open source projects, otherwise it would mean that only corpos can create models, and everyone else is SOL and thoroughly fucked, because they will pay a license fee to the platforms, and the platforms will just add a new TOS element that by using the platform you consent and withdraw your rights to compensation.