AI training of copyrighted material not fair use: Third Circuit

The Third Circuit Court of Appeals has ruled that the use of copyrighted works to train artificial intelligence models does not automatically qualify as fair use. This decision increases the legal burden on AI developers, who must now justify how their data collection practices align with copyright protections. The ruling sets a significant precedent for pending intellectual property litigation across the technology sector, potentially forcing companies to secure licensing agreements for the data used to build future systems.