Generative AI (GenAI) development heavily relies on vast datasets, often sourced uncritically from the internet, leading to legal challenges over intellectual property (IP) violations. Studies reveal that over 70% of public datasets lack proper licensing, exposing developers to unintentional breaches. High-profile lawsuits, including those by The New York Times and Getty Images, underscore the risks of using copyrighted materials without permission.
Efforts to formalize data licensing are growing, with partnerships like OpenAI’s deals with Associated Press and Shutterstock. However, inconsistent copyright laws globally create uncertainty about the ownership of AI-generated content. Balancing IP rights with innovation demands remains critical, as over-regulation risks stifling smaller innovators while favoring large corporations. Court rulings may shape GenAI’s legal future.