Third Circuit Rules AI Training on Copyrighted Material is Not Fair Use; No Fakes Act Blocked in Senate

A significant ruling from the Third Circuit Court of Appeals has determined that the training of artificial intelligence models on copyrighted material does not constitute fair use. This decision has broad implications for the AI industry, potentially requiring companies to seek explicit licenses for the data used to develop their algorithms and models.

In parallel, legislative efforts to address AI-generated deepfakes faced a setback. Senator Ted Cruz successfully blocked the passage of the No Fakes Act in the Senate, citing concerns that the bill lacked adequate exceptions for satirical and political commentary. This move highlights the ongoing debate and challenges in regulating the rapidly evolving landscape of AI technologies and their societal impact.