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I think that with people constantly figuring out how to game the GPT chat bots, if we see a few more rulings like this where companies are liable for the chat bot’s responses, we’ll see a shift back towards “dumb bots” where there’s explicit control over the responses. If people realize you can get free stuff just by manipulating a chat bot, and a company is liable for what the chat bot says…I just don’t think it’s tenable for them.
There’s a long history of this and you might find some helpful information in looking at “transformative use” of copyrighted materials. Google Books is a famous case where the technology company won the lawsuit.
The real problem is that LLMs constantly spit out copyrighted material verbatim. That’s not transformative. And it’s a near-impossible problem to solve while maintaining the utility. Because these things aren’t actually AI, they’re just monstrous statistical correlation databases generated from an enormous data set.
Much of the utility from them will become targeted applications where the training comes from public/owned datasets. I don’t think the copyright case is going to end well for these companies…or at least they’re going to have to gradually chisel away parts of their training data, which will have an outsized impact as more and more AI generated material finds its way into the training data sets.