Adobe (NYSE: ADBE) has said that it would roll out Firefly which is its AI tool for generating images for enterprise customers and offer financial indemnity for copyright-related issues.
While generative AI has been making waves globally many have expressed apprehension that a lot of AI-generated content infringes on copyright content.
There has been a rise in lawsuits over AI-generated images and in January a group of visual artists sued AI companies Midjourney Inc, Stability AI Ltd, and DeviantArt Inc over copyright issues.
By offering financial indemnity to large enterprises, Adobe is trying to make Firefly more attractive to them.
Adobe launched Firefly in March only and David Wadhwani, the President of the Digital Media Business at Adobe said “With Firefly, Adobe will bring generative AI-powered ‘creative ingredients’ directly into customers’ workflows, increasing productivity and creative expression for all creators from high-end creative professionals to the long tail of the creator economy.”
The company however stressed that it would introduce a “Do Not Train” tag for those who don’t want their content to be used for training the models.
While Adobe did not provide financial or legal details on how it would indemnify customers, Ashley Still, senior vice president of digital media at Adobe told Reuters “We financially are standing behind all of the content that is produced by Firefly for use either internally or externally by our customers.”
Adobe Offers to Indemnify Firefly Enterprise Customers
Meanwhile, Adobe offering financial indemnity against copyright might serve as a template for other companies offering generative AI services.
While AI euphoria has grown many have warned against risks as well – including those related to privacy and copyright.
Melanie Perkins, who is the CEO of Australia-based graphic design company Canva has said that the company is proceeding cautiously with its Magic Write tool which helps generate full texts for blogs and presentations when prompted with a few relevant words.
Perkins termed it “risky” and emphasized, “We’re erring on the side of caution because this industry is so in its infancy.”
That said, the AI boom has helped lift US markets this year and top tech stocks have added over $4 trillion to their market cap this year.
Not only are listed AI stocks outperforming the broader markets and with gains of over 36% Global X Robotics and Artificial Intelligence ETF outperforming the Nasdaq 100 – but startup AI companies also seeing relatively better interest from investors.
Regulators Moot Tough Regulations As AI Euphoria Grows
Meanwhile, regulators globally are scrambling to put AI regulations in place and are increasingly cognizant of AI risks.
Earlier this month, European Commission deputy head Vera Jourova said that companies deploying generative AI tools like ChatGPT should label AI-generated content to help curb rising instances of fake news using AI tools.
In response to criticism from EU industry chief Thierry Breton, OpenAI CEO Sam Altman tweeted a day later that OpenAI has no plans to leave Europe. Yet the very threat of such a departure underscores the need for continued dialogue on AI regulations. https://t.co/5T7bLHsFx4
— Asela Waidyalankara (@aselawaid) June 5, 2023
Europe incidentally is at the forefront when it comes to AI regulations and last month European Union lawmakers voted to incorporate tougher amendments to the region’s widely anticipated AI Act which could be the first comprehensive AI regulation globally.
The draft proposes to classify AI tools based on the perceived risk levels ranging from minimal to unacceptable. Also, AI companies would need to disclose if they used any copyrighted material to develop their tools.
UK’s Competition and Markets Authority has also launched an initial review of AI models
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