from Part III - Legal
Published online by Cambridge University Press: 24 July 2026
This chapter examines the collision between generative AI (GenAI) model training and foundational contract law. The central claim is that GenAI companies, through their mass data-scraping bots, acquire “actual notice” of website terms of service (ToS) and are therefore legally bound, exposing them to millions of simultaneous breach-of-contract claims. However, content creators’ contract claims, which often prohibit AI training, are frequently preempted by federal copyright law. If forced to pursue a copyright infringement claim, the GenAI company’s fair use defense often prevails. This legal conflict leaves creators without effective recourse, allowing unauthorized use of their work despite clear contractual prohibitions.
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