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GlobalFutureCouncilonInternationalTradeandInvestment
ChatWTO:
AnAnalysisofGenerativeArtificial
IntelligenceandInternationalTrade
WHITEPAPER
SEPTEMBER2024
Images:GettyImages
Contents
Executivesummary3
Introduction4
1
Overviewofglobalgovernanceefforts5
1.1Internationalefforts5
1.2Domesticlegislativeandregulatoryefforts6
2
Overviewofcurrentinternationaltraderules7
3
UrgentworkisneededontradepolicyandGAI11
Conclusion13
Contributors14
Endnotes15
Disclaimer
Thisdocumentispublishedbythe
WorldEconomicForumasacontributiontoaproject,insightareaorinteraction.
Thefindings,interpretationsand
conclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedand
endorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarily
representtheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,
Partnersorotherstakeholders.
Thiswhitepaperwasdraftedwiththeaideofseverallargelanguagemodels,includingBard,ChatGPTandCohereGAI.
©2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformation
storageandretrievalsystem.
ChatWTO:AnAnalysisofGenerativeArtificialIntelligenceandInternationalTrade2
Executivesummary
GenerativeAIneedsglobalgovernancetoavoidfragmentedregulationsand
increasedtradebarriers.
Therapidadvancementofgenerativeartificial
intelligence(GAI)haspushedAItounprecedentedlevelsofdevelopmentandsophistication.Its
swiftadoption,drivenbylargelanguagemodels(LLMs),requiresinternationaldialoguetoaddresstheethicalandpoliticalchallengesinthedomainoftradepolicy.
Inrecentyears,internationalAIdiscussionshave
focusedonsharedvalues,ethicalguidelinesand
safety,withgovernmentsrapidlyimplementing
theseprinciplesintonationalregulations.However,thesenationalefforts,drivenbyvaryingpriorities,
haveledtofragmentedanddivergentrequirementsthatarelikelytocreatecross-bordertradefrictionsandunderminegovernmentalobjectives,creatingbarrierstotheuseofGAI.
TheWorldTradeOrganization(WTO)isoneofthe
feweffectiveglobalplatformsthatcanfacilitateinter-governmentalconversationsonGAIandharmonizeitsregulation.Whileexistinginternationaltradelawsprovidesomeguidance,furtherevaluationisneededtoaddressGAI’suniquechallengesandimpacts.
Keyfindings
Globalspreadandethicalconcerns:GAIis
spreadingrapidlyworldwide,bringingissuessuchasintellectualpropertyrights,privacyviolations
andcybersecuritytothefore.Examplesincludetheunauthorizeduseoftrademarkednamesandviolationsofnationalsecuritylawsduetocross-borderdatatransfers.
Efficiencybenefitsandadoption:BusinessesareadoptingGAIforitsefficiency,withstudiesshowingsignificantreductionsintaskcompletiontimesandimprovementsinoutputquality.Thisadoptionis
accompaniedbychallengesrelatedtothetechnicalandenergycostsofoperatingthesemodels.
Regulatoryefforts:Internationalbodieslike
theOrganisationforEconomicCo-operation
andDevelopment(OECD),theUnitedNations
Educational,ScientificandCulturalOrganization
(UNESCO),andtheGroupofSeven(G7),alongwithnationalgovernments,aredevelopingprinciplesandregulationstomanageGAI’srisks.Theseeffortsaim
tobalanceinnovationwithpublicsafety,privacyandethicalconsiderations.
Internationaltradeimplications:GAI’scross-
bordernaturenecessitatestheapplicationof
internationaltraderules.TheWTOandother
tradebodiesshoulduseexistingframeworksto
addressGAI’suniquecharacteristics,encouragingdiscussionsonitsimpactontrade.
Transparencyandbias:Ensuringrobust
transparencyandcybersecuritystandardsiscrucialforbuildingtrustinGAI.Mistrustduetomisinformationisasignificantrisk,highlightingtheneedforclearguidelinesandinternationalcooperation.
Employmentandenvironmentalimpact:GAI’simpactonjobsisuncertain,withpotentialjob
displacementbeingacriticalconcern.Additionally,thesubstantialenergyrequirementsforGAI
operationsposeenvironmentalchallenges.
Recommendations
–Educationalinitiatives:HostsessionstoeducateWTOmembersonGAI,itsbenefitsandrisks.
–Legislativetransparency:EncouragememberstopresenttheirGAIlegislationforbetterglobalunderstandingandalignment.
–Reviewandadaptation:AssesscurrenttraderulesforGAIapplicability,identifyinggapsanddevelopingnewguidelineswherenecessary.
–Biasandfairness:DevelopstandardstotacklebiasinGAI,ensuringequitableandresponsibleuse.
–Collaborativedevelopment:Workwith
internationalbodiestocreatecoherent
guidelinespromotingsafeandsecureGAIuse.
EstablishingcommongroundrulesattheWTOiscrucialtoensuringGAIisdevelopedinafairandsafemannerthatbenefitsindividualsandcommunitiesglobally.
ChatWTO:AnAnalysisofGenerativeArtificialIntelligenceandInternationalTrade3
.Researchers
atMITfoundthatusingChatGPT
reducedtask
completiontime
forwriting-focusedworkersby40%
andimprovedoutputqualityby18%.
Introduction
TheadventandspreadofgenerativeAIhavemajorimplicationsforinternationaltrade;policyguardrailsareneeded.
ThelaunchbyOpenAIofChatGPTinNovemberof2022demonstratedthatgenerativeartificial
intelligence(GAI)hadreachedanewlevelof
developmentandsophistication.AIcanbedefinedasacomputerperforminghuman-liketasks,1
whileGAIisarelativelyrecentsubfieldwithinAI
thatfocusesondevelopingalgorithmstogeneratenewcontentbasedonasetoftrainingdata.2GAIhasleapttotheforefrontofAI(andcurrentculture)
inlargepartduetotheabilityoflargelanguage
models(LLMs)torespondtospeechlikeahumanbeing.Thesemodelsoperateby“guessing”the
nextwordbasedonasetoftrainingdata.3
Theyoftenrequiretremendouscomputingpowertooperatebecausetheymustassessanentire
trainingdataset(whichcanbeevenlargerthanacopyoftheentireWorldWideWeb)torespondtoaparticularrequest.4
SeveralexampleshighlightthecriticalneedforinternationalorganizationsliketheWorldTradeOrganization(WTO)toconsidertheintersectionofAIandtradepolicy.
ThefirstexampleisayoungfilmmakerinAustraliawhositsdowntoworkonadraftofherlatest
script.ShelogsintoChatGPTandentersthe
prompt,“CreateashortfictionalstoryaboutNelsonMandelafightingclimatechangein2023”.She
lovesthestoryChatGPTcreatesanddecidestoincludeitinherupcomingsurrealistfilm.However,theNelsonMandelabrandnameistrademarked,andneithertheGAInorthefilmmakersecuredtherightstousethatnamebeforeproducingthefilm,violatingintellectualproperty(IP)rules.
Alternatively,considertheboardofasuccessful
telecommunicationscompanyinDenmarkthat
isreviewingproposalstomakeoperationsmore
efficient.Themostinterestingitemfordiscussion
involvesanAIchatbotpoweredbyCohere(a
CanadianLLMprovider)torespondtocustomer
servicecalls,whichisestimatedtoreducecosts
by30%.Theboardapprovestheproposalandnowthechieftechnologyofficeristaskedwithpurchasing
acomputercapableofhandlingthetremendous
amountofincomingandoutgoinginformationthe
newchatbotwillcreate.ThechieftechnologyofficerreviewsproposalsfromseveralprovidersanddecidestopurchaseacomputerfromaChineseprovider.ThecomputerandthenewsoftwareimproveefficiencyatthecompanybutalsoviolateanewEuropeanUnion(EU)lawthatbarstheuseofAIproductsfromChinaduetonationalsecurityconcerns.
Theseexamplesdemonstratehowthespreadof
GAItechnologycreatesnumerousethical,tradelawandpolicyissues.ChatGPTbecamethefastest-
growingconsumerapplicationinhistorywhenit
reached100millionusersjusttwomonthsafteritslaunch.5BusinessesarerapidlyadoptinggenerativeAIforitsefficiencybenefits.Researchersatthe
MassachusettsInstituteofTechnology(MIT)foundthatusingChatGPTreducedtaskcompletiontimeforwriting-focusedworkersby40%andimprovedoutputqualityby18%.6
However,therearelimitationstothegrowthand
efficacyofGAI.First,therearelarge-scaletechnicalandenergycostsrequiredtopowerthestorageandcomputingrequirementsofthesemodels.7AnotherpotentiallimitationonGAI’sgrowthisaccesstolargeenoughdatasetsforsufficienttraining.Forexample,nearly20%ofthetop1,000websitesintheworld
currentlyblockGAIcrawlerbots,whichresults
inGAIproviderspurchasingdatasetsfromweb
publisherstofeedanddifferentiatetheirofferings.8Theseexclusivedealstoaccessinformationraiseconcentrationandcompetitionrisks.
TherearealsoseriousrisksassociatedwithGAI.
Misinformation,disinformation,manipulation,bias,IPtheft,personalprivacyviolationsandcybersecurityissuesareallforeseeableproblems.Theimpactof
GAIonjobsisuncertain,withestimatessuggestingitcouldaffectanywherefromzeroto300million
jobsworldwide.9TheideathatGAImightdecideto“cuthumansoutoftheloop”orengageinharmfulactionsisunlikelyintheshorttermbutmaybecomeaconsiderationinthelongerterm.10
ChatWTO:AnAnalysisofGenerativeArtificialIntelligenceandInternationalTrade4
1
Overviewofglobalgovernanceefforts
EffortstogovernAIgloballyfocuson
balancinginnovationwithmanagingriskslikebias,privacyandcybersecurity.
WhileGAIcreatesbenefitsandopportunities,
policy-makersaroundtheworldhavefocused
onmitigatingpossiblenegativeconsequences
ofGAIsuchaspublicsafety,bias,privacyand
otherhumanrights,andcybersecurity.Workhasbeenongoinginseveralforumsandcountries,beginningasabroaderarticulationofethicalor
value-basedprinciplesandmovingintomore
detailedandprescriptivenationalregulationor
legislation.Countrieshavefollowedinternationallyagreedprinciplesbuthaveregulatedbasedon
nationalprioritiesandlocalculturalnorms,creatingregulatorydiversitythatwillleadtofrictionand
cross-borderchallenges.
1.1
Internationalefforts
TheOrganisationforEconomicCo-operationand
Development’s(OECD)
AIPrinciples
,createdin
2019andsupportedby47countries,werethe
firstsignificantAIpublicpolicyrecommendations.
DesignedtoguideAIactorsonthevaluesand
actionsneededtodeveloptrustworthyAIand
effectiveAIpolicies,theprinciplesincludefivevaluesandfivegovernmentpolicyrecommendations.TheAIPrincipleswereupdatedinMay2024toreflect
recentdevelopmentsandincludemoredetailed
guidance.TheOECDalsocreatedthefirstsetofcommondefinitionsandotherstandardsthathavebeenrelieduponbytheUnitedNations(UN)andnationalgovernmentsinsubsequentwork.
TheUnitedNationsEducational,ScientificandCulturalOrganization(UNESCO)releasedthe
RecommendationontheEthicsofArtificial
Intelligence
inNovember2021toaddresstheethicalrisksassociatedwithAI.11With193
countriesassignatories,thereportidentifies
11areasoffocustolimitreal-worldbiasesand
discrimination,lowerdivisionsandconflicts,and
preventinfringementsonhumanrights.Thereportalsoincludesrecommendationsformonitoringandenforcementofanypotentialethicalviolations.In
additiontotheworkatUNESCO,theUNSecretary-Generalhasannounceda32-memberHigh-LevelAdvisoryGrouponAI.12OtherUNagenciesare
lookingatsectoralramifications,suchasthe
WorldHealthOrganization(WHO)andInternationalTelecommunicationsUnion’s(ITU)jointfocusgroupontheintersectionofAIandhealth.13
TheUKgovernmentconvenedofficials,scientists
andotherexpertsatanAISafetySummitand
releasedthe
BletchleyDeclarationforAI
tojumpstart
internationalcollaborationonthesafetyand
regulationof“frontier”AI.TheBletchleypolicypaperexplicitlyrecognizedthatmanyoftherisksfromAIarecross-borderandinternationalinnature,and
globalcoordinationiscritical.TalkshavecontinuedwithmeetingsinSouthKoreainMay2024and
futuremeetingsplannedinFranceinFebruary2025.
InDecember2023,theJapanGroupofSeven
(G7)Presidency’s
HiroshimaAIProcess
detailedAIprinciplesandacodeofconduct(AIP&CoC),whichbuildsupontheworkoftheOECD,UNESCO,
BletchleyParkandseveralnationalefforts.14TheseprinciplesfocusonthedevelopmentofresponsibleAIusingarisk-basedapproachandinclude
provisionsonthedevelopmentandtestingofnewAIapplicationsaswellasrobustsecuritycontrols.Whilenon-binding,theAIP&CoCoutlinesspecificactionsthatcanbeundertakentoimplement
theprinciples.Areasforfurtherresearchand
developmentwerealsoidentified.G7members
pledgedtoimplementtherecommendationsandtostronglyencourageuptakeintheirprivatesectors.Anopenquestionremainsonhowgovernments
willimplementtherecommendationswhileavoidingfragmentationordivergencethatcouldunderminetheirobjectivesforresponsibleAI.Futureworkin
theG7willbeongoing,withcontinuedworkonvariousissuesincludingdefinitionsandsecureinformationsharingonAIsystemvulnerabilities.
ChatWTO:AnAnalysisofGenerativeArtificialIntelligenceandInternationalTrade5
1.2
oFragmentationwillcreateand
exacerbate
vulnerabilities
thatmayundercutcountries’intendedgoalsofsafety
andsecuritywhilecreatingunevenplayingfields.
InMay2024,theCouncilofEuropeadoptedaninternationaltreatyonAI.15Thetreatyincludes46CouncilofEuropememberstates,theEuropeanUnionand11non-memberstates.Itfocuses
ontheuseofAIsystemsbyboththepublicand
privatesectors,andcreatestransparencyand
oversightrequirements.Thetreatyalsoadoptsmeasuresrelatedtotheprotectionofdemocraticinstitutionsandexemptsnationalsecurity-relatedissuesfromitscoverage.
Domesticlegislativeandregulatoryefforts
SeveralcountrieshavebeguntheprocessorpasseddomesticlegislationorregulationrelatedtoAI.Canada(2017)16andSingapore(2019)wereearlymoversinthespaceaswell.China’s
ANextGenerationArtificial
IntelligenceDevelopmentPlan
,releasedin2017,
calledfortheestablishmentoflaws,regulations
andethicalframeworkstohelpgovernAI,includingthrough“internationalrules”andcooperation.BrazilisalsoclosetocompletingitsAIlegislation.17
IntheUS,theNationalArtificialIntelligenceInitiativeActof2020isthemosttangiblepieceoflegislationpassedonAI,andmuchofitsfocusisontheuseofAIindefence,nationalsecurityandintelligence.18InOctober2023,theBidenAdministrationreleasedthegroundbreakingexecutiveorder(EO)
Safe,Secure,
andTrustworthyDevelopmentandUseofArtificial
Intelligence
.TheEOoutlinedprinciplesthatwill
guideAIgovernanceintheUSandrequiredvariousUSgovernmentagenciestodevelopadditional
workonspecifictopicssuchasimpactonworkers,civilrights,patentsandmore.TherewasnoexplicitinclusionofinternationaltradeorinstructionstotheUSTradeRepresentative.TheBidenAdministrationalsosecuredvoluntarycommitmentsfromseven
majorAIcompaniesinJuly2023.19TherehavebeenseveralbillsproposedintheUSCongressonAI,butnonehavebecomelaw.20Moreover,25stateshaveproposedlegislationin2023relatedtoAI.21
TheEuropeanParliamentpassedthemost
comprehensivelegalframeworkrelatedtoAI,
knownastheAIAct,on13March2024.TheEU
beganworkin2019andsoughtextensiveinput
astheydesignedthelegislativeproposal.22The
EUAIActisacomprehensiveframeworkforAI
thatattemptstoencourageAIinnovationwhile
upholdingcitizens’rights;itwillbephasedin
startinginlate2024.23Itwasoriginallyconstructedaroundspecific-usecasesandratedtheirrisks
fromminimaltohigh,butlawmakersreviseditto
includeGAI,whosegeneral-purposecapabilities
didnotfitwithinthepreviouslydefinedrisks.The
finallegislationincludedtransparencyrequirementsforGAI,aswellasathoroughevaluationprocessforhigh-impactGAIthatcouldposesystemicrisks.
TheAIActalsoincludesseveralprovisionsthat
specificactionstakenshouldbeinlinewiththeEU’sinternationaltradecommitments.24
Sixbilateraltradeagreementsalreadyinclude
provisionsonAI,includingfiveagreements
betweenSingaporeandotherpartiesandthe
AfricaFreeTradeArea.25TheUS-EUTradeandTechnologyCouncil(TTC)addressedseveral
emergingtechnologyissuesincludingGAI,26
creatingatransatlanticAIroadmapandacodeofconduct.TheEUandIndiahavecreatedtheGlobalPartnershiponArtificialIntelligence,whichaimstocreateamemorandumofunderstandingonthetopicbySeptember2023.27Additional
conversationsarestarting,withChinapushingspecificallyforfutureAIgovernancetalks
withtheUS.
Thereisalsoagreatdealofcurrentregulatory
actionintheAIspacewith600regulatory
developmentstargetingAIprovidersjustsince
January2023.28Manyregulatorshavealsousedexistingprivacyandconsumerprotectionlaws
toinvestigateAIapplications.Forexample,
ChatGPTwasbannedinItalyonprivacygroundsin2023.29ChinahasapplieditsspeechrulesonobjectionableGAI-generatedcontent.IntheUS,thelackofcomprehensiveAIlegislationisleadingregulatorstobegintoact,30andtheUSFederalTradeCommissionhasopenedaninvestigationintoChatGPTlookingatsecurityandconsumerharm.31SectoralregulatorshavealsotakendirectactiononGAI.InSingapore,throughProject
Veritas,theMonetaryAuthorityofSingapore
hassoughttostrengthencoreprinciplesinGAIapplications.TheUKhasappliedconsumerdutyandexistingbank-modelriskmanagementrulestoAIapplications.
Allthisnationalactivity–legislative,regulatory
andbilateral–isimportanttoprotectcitizensandsocietiesfromtherisksofGAI.Italsoraisesnewquestionsabouthowdifferentruleswillimpactthecross-borderproduction,useanddisseminationofGAI.Fragmentationwillcreateandexacerbatevulnerabilitiesthatmayundercutcountries’
intendedgoalsofsafetyandsecuritywhilecreatingunevenplayingfields.Reviewingthesedifferencesconsideringtheexistinginternationaltraderuleswillhelpeducatepolicy-makersonthecurrentstateofplay,helpidentifyareaswheredifferencesexist,andpinpointadditionalneededwork.
ChatWTO:AnAnalysisofGenerativeArtificialIntelligenceandInternationalTrade6
2
Overviewofcurrent
internationaltraderules
DomesticlegislationcreatesvariedrulesforGAI,causingregulatoryfragmentationandpotentialtradebarriersininternationalmarkets.
DiscussionoftheinternationaltradeimplicationsforGAIisatanascentstage.Asreviewedin
previoussections,domesticlegislationand
regulationshavealreadycreateddifferentrulesthatwillimpacttheinternationaltradeofGAI,resultinginloopholesthatunderminethemanagementof
GAIrisks.Whilegovernmentshavecometogethertooutlinecommonprinciplesandvalues,countrieshaveprioritizeddifferentaspectsoftheseprincipleswhencraftinglocallaws.Somecountriesaretakingamarketapproach,encouraginginnovation.Othercountriesaretakingastate-drivenapproach,
ensuringAIdevelopmentisinaccordancewithpublicsafetyandotherstatepriorities.Afinal
approachisarights-drivenapproach,where
citizens’fundamentalrightsmustberespected.
Thesethreedifferentapproachesarecreating
fragmentationandfrictionforAIdevelopers
andusersandmaycreatetrade-distortingor
discriminatoryregimesthatunderminetherulesoftheWTO.Internationaltraderulesarebasedonafewcoreprinciples,including:
–Treatinglocalandforeignfirmsandproductsasequals(non-discrimination)
–Progressiveliberalizingbasedonacountry’slevelofeconomicdevelopment
–Creatingpredictabilityandtransparency
–Promotingfaircompetition
Thesegeneralprinciplesareappliedviavarious
provisionsinbilateral,regionalorglobalagreementsandwouldalsoprovidealevelplayingfieldfor
countriesgrapplingwithGAI.
Thereare,however,seriousgapswhenattemptingtoapplytheexistingrulesinthetradingsystem
totherapidinnovationsinGAI.CanGAIsecure
acopyrightinonecountrythatcanbeupheld
internationally?Ifacountrybanstheuseofits
citizens’datatotrainGAI,aretheretradelawsthatmightbeimplicated?DidtheGeneralAgreement
onTradeinServices(GATS)negotiatorsagreeto
allowunbridledtradeinGAIwhentheycommittedtoliberalizingcomputingservices,whichatthetimewaslimitedtobusinesssoftwareapplications?
Giventhenumberofcomplexinternationaltrade
andinvestmentissuesthatapplytoGAI,aswell
asthenew,technicalknowledgerequiredby
tradenegotiatorstounderstandtheissuesaroundGAI,theWTOshouldbegin:1)learningsessions
todiscussGAIanditsuniquecharacteristics,2)
informationonexistinginternationalandnational
rulesonGAI,and3)reviewsofWTOrulesthat
wouldapplytoGAI.OncetheWTOidentifieshow
currentrulescoverGAIandpotentialgaps,theWTOshouldbeginthinkingaboutthenextsteps.Given
therapiddevelopmentofadvancesinGAI,theseeffortsshouldtakeplaceatanacceleratedpace.
Thecross-cuttingnatureofGAIwillimpactmanyWTOprovisions.BelowwefocusonspecifictradeprovisionsthatofficialsshouldreviewandconsiderfortheirimpactonGAI:
GATS
ThenatureofGAImakesitchallengingtoclassifyitsusecase(mode)orlocation(origin),whicharetechnical,underlyingquestionsthatimpactthe
treatmentofGAIundertheexistingGATSrules.GATSschedulesincludeasectionon“computerandrelatedservices”,butmemberscouldprovethattheyneverenvisionedGAIwhentheymadethosecommitments.32Moreover,ifcompanies’
operationsorproductsincludeGAI,forexampleintheoperationsofafinancialservicecompanyoramultimediacompany,wouldtheobligationsoffinancialservicesormediaservicesapplyto
theoutput?Thesearequestionsthatdonot
havestraightforwardanswersbuthavesignificantimpactswithregardtotheenforcementof
internationaltraderules.
GAIcouldqualifyundermultiple“modes”of
supplythatmayrequirefutureconsiderationof
anewmodeforAIservices.Mode1isdefined
asthesupplyofaservicefromtheterritoryof
oneWTOmemberintotheterritoryofanyother
WTOmember(cross-borderorremoteprovision
ofservices)However,intermsofconsumerGAI
products,typicallytheuserlogsontoawebsite
operatedbytheGAIserviceproviderandentersaquery,whichcouldarguablybeamode2service,i.e.theconsumertravelledabroadtothe“location”oftheGAIserviceprovider.Thisdistinctionis
ChatWTO:AnAnalysisofGenerativeArtificialIntelligenceandInternationalTrade7
OGAIislikelyto
acceleratethe
creationofnew
patentableideas
withoutspecific
humanintervention,raisingquestions
aboutthelegal
frameworkfor
patentableideasdevelopedbyGAI.
importantascountriesmadedifferentcommitmentsin1994basedonthetypeofmode,aswellasthetypeofserviceprovided.
AsAIdeveloperscontemplatethestructureoftheiroperations,tradeofficialswillneedtoconsider
howtodefinetheoriginoftheserviceoftheGAI.
Willitbethelocationofserversandalgorithms,
thelocationoftheheadquarters,orthelocation
oftheuser?IfanenergycompanyusesGAIand
combinesitwiththetheirowndatatocreate
novelusecases,istheoriginthecountrywhere
theenergycompanyislocatedorwheretheGAI
servicecomesfrom?OrshouldtheLLMproviderberesponsiblefordownstreamusecases?
Finally,iftheGATSweretoapplytoaparticularGAIserviceprovision,thereareexceptionsthatcountriesmayclaimtolimittheapplicationoftheGATS,suchasthenationalsecurityexception.GAIisadual-
usetechnology,andcompaniesmaychallenge
nationalsecurityexceptionsasoverlybroadand
discriminatory.33InthecaseofbansorlimitationsonGAIusebasedondataprotectionconcerns,
governmentsmayclaimanexceptiontoprotect
privacy.CountriescouldalsoraisepublicmoralsorculturalexceptionstojustifyrestrictionsonGAIuseintheproductionofcertainimagesorspeech.
AgreementonTrade-RelatedAspectsofIntellectualPropertyRights(TRIPS)
Since2022,severallawsuitshavehighlightedthe
challengesassociatedwithGAIandIP.InNovemberof2022,agroupofsoftwareprogrammersfileda
USclassactionlawsuitagainstMicrosoft,OpenAIandGitHub,arguingthattheGitHubCoPilot
product(whichcangeneratecode)violated
copyrightlawbyscrapingcopyrightedcode.34GettyImagesfiledalawsuitagainstStabilityGAIintheUKallegingunlawfulcopyingofmillionsofcopyrightedimages.35IfandhowcompaniescantrainGAIon
copyrightedortrademarkedmaterialsisimportantasthebreadthanddiversityofdataareessentialtocreatingresponsibleGAI.
MeanwhileintheUS,copyrightprotectionhas
beeninplaceforGAIworkssince1988,withthecopyrightownedbywhoevercreatedtheGAI
system.InAugust2023,aUSdistrictcourtjudgeruledthatGAI-generatedartworkisnotprotectedundercopyrightlaw,36raisingquestionsaboutthefutureprotectionofGAI-createdwork.
Th
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