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Our thinking: Blockchain and generative AI

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Protecting IP is just one of the challenges businesses face as they race to add generative AI to their technology stack. They also face great uncertainty as to the eligibility of newly generated content for copyright protection. Copyright laws vary from country to country, but there are widespread doubts about whether works that are not the result of human creativity should enjoy copyright protection. There also are questions around the legality of generative AI output. A number of European data protection agencies, for example, have already fined a U.S. company for what the agencies claimed were unlawful uses of AI-based facial recognition technology trained on images publicly available online.3

Also to be resolved are questions about ownership, especially given that generative AI output can be shaped in important ways by the natural language prompts humans input to produce that output. That output also can bear a striking resemblance to the data on which a generative AI platform was trained, as evidenced by the uncanny way image-generating platforms can create works in the style of famous artists. Finally, there are questions about which aspects of AI systems themselves, including their training sets, can be protected by patents, copyright, and trade secrets.

In addition to proceeding with caution to avoid creating inaccurate output from generative AI, businesses will want to proceed with caution to make sure they don’t compromise their own IP or infringe on the rights of others.

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