The Economic Importance of Fair Use for the Development of Generative Artificial Intelligence

The transformative economic impact of generative AI is likely measured in the trillions of dollars over the coming decades. However, the productivity gains from AI adoption and improvement depend on fair use protections for the firms training the models and providing AI tools. In the absence of fair use protections, the U.S. will lose out on technological leadership across numerous fronts to foreign rivals. Alternatives to fair use would expose developers to billions of dollars in potential liability, massively reducing AI model training in the U.S.