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The Case for Regulating Generative AI Through Common Law

The European Union’s Artificial Intelligence Act could impede the development of AI technologies, which depends on the availability of human-generated content as training data. By contrast, case-by-case adjudication could prove to be a more effective mechanism for tackling the myriad challenges posed by emerging technologies.

LONDON/HONG KONG – The impending rollout of the European Union’s Artificial Intelligence Act represents the bloc’s latest attempt to cement its status as a regulatory powerhouse. This ambitious legislation, which aims to impose stringent regulations on AI technologies, underscores the EU’s commitment to proactive governance.

Meanwhile, the United States has taken a very different path. Despite the sweeping executive order issued by President Joe Biden in October 2023, the country still lacks a cohesive AI regulatory framework. Instead, a surge of litigation has overwhelmed US courts, with leading AI firms being sued for copyright infringement, data-privacy breaches, defamation, and discrimination.

Given that litigation is expensive and often drags on for years, the EU’s strategy may appear more forward-looking. But the common-law system might actually prove to be a more effective mechanism for tackling the myriad challenges posed by generative AI. This is particularly evident in copyright law, where a growing number of artists, publishers, and authors are embroiled in legal battles against AI giants like Microsoft, OpenAI, and Meta over the use of copyrighted material.

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