Why India's plan to make AI companies pay for training data should go global (restofworld.org)

India has proposed a draft law requiring AI companies to pay royalties for using copyrighted works from the country to train their models. This significant move could disrupt operations for major tech firms like Meta, Google, and OpenAI, particularly in a market where India is the second-largest user of ChatGPT and a booming hub for AI investments. By mandating a blanket license fee based on global revenue, India aims to create a fair compensation framework for local creators, addressing the concerns raised by increasing copyright litigation surrounding AI-generated content. The proposal highlights India's unique position due to its vast linguistic diversity and the need for AI models tailored to local languages and cultures. However, it has faced pushback from industry groups worried it may stifle innovation, with critics suggesting that it could disproportionately favor larger creators over smaller ones. The initiative’s potential for setting a global precedent is notable, as other countries like Brazil are considering similar measures. If adopted, this model could reshape AI company's operational landscapes by forcing them to integrate payment structures into their business practices, thereby influencing how other nations approach the regulation of AI and copyright in the future.