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AI Data Licensing, Ethical New Norm

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AI Data Licensing, Ethical New Norm

AI Data Licensing, Ethical New Norm

The way major generative AI tools are trained is changing. Initially, these tools were trained on publicly available data, but now sources of training data are increasingly restricting access and pushing for licensing agreements. As a result, new licensing startups have emerged to keep the source material flowing.

The Dataset Providers Alliance

The Dataset Providers Alliance (DPA), a trade group formed this summer, wants to make the AI industry more standardized and fair. The alliance is made up of seven AI licensing companies and has released a position paper outlining its stances on major AI-related issues.

Advocating for Opt-In System

The DPA advocates for an opt-in system, meaning that data can be used only after consent is explicitly given by creators and rights holders. This represents a significant departure from the way most major AI companies operate.

Compensation Structures

The alliance suggests five potential compensation structures to make sure creators and rights holders are paid appropriately for their data. These include:

  • Subscription-based model
  • Usage-based licensing (in which fees are paid per use)
  • Outcome-based licensing, in which royalties are tied to profit
  • Standardizing Compensation Structures

    Standardizing compensation structures is potentially a good thing, as it helps smooth the road for mainstream adoption. The DPA also endorses some uses of synthetic data, arguing that it will constitute the majority of training data in the near future.

    A New Era for AI

    The very existence of the DPA demonstrates that the AI Wild West days appear to be coming to an end. As the AI industry continues to evolve, it’s essential to have standards and guidelines in place to ensure that data is used ethically and fairly.

    My Thoughts

    A Shift Toward Ethical AI Data Licensing

    The rise of generative AI tools has led to an increased demand for data licensing. However, the current system often disregards the rights of data owners. A new trade group, the Dataset Providers Alliance (DPA), aims to change this by advocating for an opt-in system that prioritizes creator consent.

    The Need for Standardization

    Experts agree that the current opt-out system is fundamentally unfair to creators, as it puts the burden on data owners to opt out of data use. The DPA’s proposed opt-in system would require AI companies to obtain explicit consent from creators before using their data. This shift towards a more standardized approach could ultimately lead to more ethical AI development.

  • The DPA also proposes various compensation structures for creators, including subscription-based models and usage-based licensing.
  • Experts acknowledge that the sheer volume of data required for AI models may make the opt-in standard challenging to implement.
  • The emergence of the DPA marks a step towards a more regulated AI industry, one that prioritizes creator consent and fair compensation.
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