Govt proposes Google and OpenAI pay royalties to creators for AI training: Big Tech reacts

A government committee in India has put forward an ambitious initiative that would require major Artificial Intelligence (AI) companies, including giants like Google and OpenAI, to compensate content creators for their contributions used in AI training. This proposal represents a significant shift in the current practices of the tech industry regarding data usage. Established in April, the panel has released a report suggesting that while AI firms should have access to Indian content for the purpose of training their models, they must allocate a portion of their earnings to a centralized fund. This fund would serve to represent copyright holders, ensuring that creators receive appropriate remuneration without the burden of having to track down each instance of their work used in large AI datasets. This approach contrasts sharply with the stance taken in the United States, where AI companies often argue that utilizing publicly available content falls under "fair use" and does not require payment. The Indian panel has explicitly dismissed the "opt-out" frameworks seen in regions like the European Union, deeming it unfair and ineffective to place the onus of tracking on individual creators. The proposal has already faced swift backlash from key technology organizations. Nasscom, a prominent industry body that includes members like Google and Microsoft, has openly criticized the mandatory fee as a "tax or levy on innovation." In contrast, content organizations, such as the Motion Picture Association, have expressed a preference for establishing licensing agreements rather than introducing new fees. The Indian government has allowed a 30-day window for public and industry feedback before officials review the proposal. Should it gain approval, this initiative could set a precedent for AI regulation globally and alter the landscape of how major language models acquire their training data in one of the world's largest consumer markets.