While OpenAI and Google lobby for expanded "fair use" protections to train AI on copyrighted materials, the EU has taken a dramatically different approach with its AI Act (effective August 2024).

The EU AI Act explicitly requires AI providers to obtain express consent from rightsholders for training data, implement comprehensive copyright policies, and provide transparency about data sources. This stark regulatory divergence creates a fascinating global tension.

On one side: OpenAI and Google argue that national security and innovation require unfettered access to training data, positioning China's AI advancements as a competitive threat.

On the other: The EU mandates rigorous copyright protections with extraterritorial reach—affecting any company wanting to operate in European markets regardless of where their training occurs.

This regulatory clash creates a critical decision point for the AI industry. Will the US prioritize rapid development through expanded fair use, or will the EU's rights-holder-focused approach become the global standard?

What do you think: Can we balance innovation with proper compensation for creators, or are these approaches fundamentally incompatible?

https://digital-strategy.ec.europa.eu/en/library/third-draft-general-purpose-ai-code-practice-published-written-independent-experts

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