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### AI Executive Challenges Fair Use Justifications for Teaching Conceptual Artificial Intelligence

A Stability AI executive quit over the company’s point of view on fair use. Advocates for mus…

The CEO and Editor of Tech Policy Press is Justin Hendrix.

A communication from a senior representative at Stability AI, a company known for its generative AI technologies such as Stable Diffusion, was directed to an individual identified as X (formerly known as Twitter) yesterday afternoon, detailing the reasons for his departure from the organization. Responding to a request for a public statement regarding this matter, Edward Newton-Rex, the former vice president of audio at Stability AI, mentioned that his decision to leave the company stemmed from his inability to influence the prevailing stance on fair use within the organization. This stance was notably articulated in the company’s submission to the US Copyright Office.

Jukedeck, a company specializing in IoT music creation founded by the artist Newton-Rex, was acquired by ByteDance, the parent company of TikTok, in 2019. It became apparent that the company maintained a perspective on the utilization of unlicensed advertising that aligns with the practices of many prominent generative AI firms and other major tech entities engaged in similar model development. Despite his pride in his team’s achievements in creating a cutting-edge AI music generation tool trained on authorized data and profit-sharing arrangements with rights-holders, Newton-Rex expressed concerns about the prevalent approach of “utilizing any online content for training AI systems.” He argued that this method of training AI models could have detrimental effects on the entire artistic sector:

“In the absence of authorization, large corporations are training relational AI models on creators’ works, which are subsequently used to generate new content that often competes directly with the original creations. In a creative landscape where artists heavily depend on rights for sustenance, I fail to see how this practice can be deemed ethical.”

During an event titled “AI and the Public Interest” organized in Washington, D.C. by the Open Markets Institute and AI Then Institute, I had the privilege of moderating a panel discussion earlier that day on the adverse impacts of AI systems on musicians and artistic innovation. Joining me were Ashley Irwin, the head of the Society of Composers & Lyricists, Jen Jacobsen, a former advertising executive now serving as the executive director of The Artist Rights Alliance, and Ashley Pelly, a music industry writer with a focus on Spotify. The viewpoints shared by my fellow panelists echoed Newton-Rex’s concerns regarding ethical practices in the industry.

On Wednesday, November 15, 2023, the JW Marriott in Washington, DC hosted a significant industry gathering. (Michael Connor/Connor Studios, 2023)

Jacobsen strongly argued against the notion of a universal approval for the use of AI in model training, particularly in cases requiring judicial review. She highlighted the adverse impact of using existing works for training purposes, creating direct competition with original content, which contradicts the concept of fair use.

Irwin emphasized the importance of maintaining a market for training aspiring musicians and composers, cautioning against potential disruptions caused by new AI technologies.

Speaking specifically about music, Irwin emphasized the necessity of “the three Cs” – consent, compensation, and credit – in regulating the interactions between technology firms and artistic creators. He advocated for upfront payment before any data is utilized for training AI models, rather than retroactive compensation after the models have been developed.

Jacobsen referenced a proposed legislation, the Protecting Working Musicians Act, introduced by Rep. Deborah Ross (D-NC), aimed at empowering musicians to negotiate collectively with streaming platforms and AI technology developers for fair terms governing the use of their intellectual property.

Pelly highlighted the transformative impact of AI on the music industry and creative sectors, reshaping the landscape and business dynamics in favor of corporations. She emphasized the need to acknowledge the significant role of AI in altering music creation, consumption, and career paths, driven by machine learning technologies and opaque business practices, particularly affecting independent artists.

While acknowledging the benefits of generative AI for musicians, the participants agreed on the importance of ethical AI practices that respect creators’ rights and consent, echoing sentiments expressed by Newton-Rex in his resignation letter.

Getty initiated legal action against Stability AI earlier in the year, alleging substantial infringement of Getty Images’ intellectual property rights by the software company.

The US Copyright Office announced its decision to continue receiving public feedback on issues related to conceptual AI until December 6.

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Last modified: February 25, 2024
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