AI Updates: July 22 – August 5

Here’s what you’ll find in this AI update:

  • EU AI Act comes into force

  • Elon Musk files a second lawsuit against OpenAI

  • US Copyright Office issues report recommending protections against deepfakes

  • OpenAI responds to safety concerns raised by senators

  • Arijit Singh approaches Bombay HC to protect his publicity rights against AI

  • PerplexityAI introduces policy to compensate publishers

EU AI ACT COMES INTO FORCE

Image Credits: Pixel-Shot

On 01 August, the European Commission announced the enforcement of the first global piece of AI regulation – the EU AI Act. This Act takes a risk-based approach for the classification of AI models – minimal risk AI models will be unregulated, specific transparency risk AI models will have disclosure obligations, high-risk AI systems will be subject to strict requirements under the Act, and AI systems falling under unacceptable risk will be banned.

The provisions of this Act will be applicable in several iterations, most of which will be applicable from 2 August 2026. Prohibitions on AI systems that fall under unacceptable risks will apply after six months, and rules for general-purpose AI models will apply after 12 months.

 

ELON MUSK FILES A SECOND LAWSUIT AGAINST OPENAI

Image Credits: OpenAI/Thomson Reuters

On 05 August, Elon Musk filed a second lawsuit against OpenAI, after withdrawing the first lawsuit in June. The second lawsuit contains similar allegations as the first, but takes a more aggressive approach this time.

The first lawsuit alleged violation of the Founding Agreement, which stated OpenAI’s non-profit status. This vision was apparently abandoned when OpenAI decided to bring Microsoft on its board.

The second lawsuit takes a slightly different turn and claims that OpenAI founders, Sam Altman and Greg Brockman, misled Musk into founding the company in 2015, “preying” on Musk’s concerns on the “existential” dangers of AI and his mission to create safer and more open AI than the tech giants. The suit also claims that OpenAI provided a license to Microsoft to all its AI models under the guise of determining whether “AGI” has been achieved, which the Microsoft board has failed to declare till date.

Following these allegations, Elon Musk seeks to hold the license to Microsoft null and void, and to establish a constructive trust to OpenAI’s property in favour of Musk.

 

US COPYRIGHT OFFICE ISSUES REPORT RECOMMENDING PROTECTIONS AGAINST DEEPFAKES

Image Credits: US Copyright Office

The US Copyright Office released Part 1 of its ongoing report series on AI and Copyright, which deals with the issue of the use of digital replicas. The report examines the recent proliferation of AI-generated deepfakes on the internet, the adequacy of the current regulatory framework, and its recommendations for improving existing regulation.

The Report suggests increasing the regulatory scope of publicity rights beyond name, image, and likeness, covering all individuals and not just celebrities under regulatory scope, applying the existing laws to the lifetime of individuals with limited postmortem rights, liability for distribution of infringing content, and injunctive and monetary remedies.

OPENAI RESPONDS TO SAFETY CONCERNS RAISED BY SENATORS

Image Credits: Sen. Brian Schatz/X

On 22 July, a group of Senators wrote a letter addressed to Sam Altman regarding OpenAI’s recent safety and employment policies. This letter touched upon two instances – the first being OpenAI disbanding its safety team, despite OpenAI’s commitment to dedicate 20% of its compute to safety research, and the second one being OpenAI’s recent controversy over the non-disparagement clauses in its separation documents. Sam Altman replied to this letter on 01 August, stating that OpenAI is still committed it dedicating 20% of its computing resources to safety efforts and that the non-disparagement clauses for former and current employees have been voided.

Sam Altman also revealed that OpenAI is working with the US AI Safety Institute to provide early access to its next foundation model in furtherance of the science of AI evaluations.  

ARIJIT SINGH APPROACHES BOMBAY HC TO PROTECT HIS PUBLICITY RIGHTS AGAINST AI

Image Credits: NDTV
On 29 July, the Bombay High Court passed an order against eight online platforms for violating the personality rights of composer and singer, Arijit Singh. According to the plaintiff, the companies provide AI tools that synthesized sound recordings by mimicking his voice, mannerisms, and other features. Justice Chagla, while granting interim relief to the plaintiff recognized the singer’s publicity rights and clarified that the order applies to the unauthorised use of Arijit’s personality traits, in any form or manner, including GIFs, AI voice models, generative AI, and social media.
 
 

PERPLEXITYAI INTRODUCES POLICY TO COMPENSATE PUBLISHERS

Image Credits: PerplexityAI
On 30 July, PerplexityAI announced its Perplexity Publishers Program and its first set of partners, including TIME, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and WordPress.com. The Perplexity Publishers Program involves a revenue-sharing model, wherein a publisher is paid a royalty every time its article is cited in an answer generated by Perplexity’s LLM, called “Pages”. This Program also provides the partners access to Perplexity’s API to integrate into each partner’s website and create custom search engines.
 
 

In other AI news…

  • US Commerce Department endorses open-source models, but recommends supervision for potential risks;

  • Meta rolls out Llama 3.1, an open-source AI model; and

  • OpenAI launches prototype for SearchGPT, a web browsing tool combined with gen-AI

 

Authors: Shruti Gupta, Shantanu Mukherjee