Rights holders are increasingly licensing their data to startups and Big Tech to train AI models, but hurdles remainOne fix may lie in hybrid models mixing upfront monies with revenue sharing so AI-generated content benefits all partiesand AI developers. From text and images to videos and music, rights holders are increasingly licensing their data to startups and Big Tech companies to train AI models.
Given this outlay, finding a balance that recognizes the costs incurred by AI developers while fairly compensating rights holders is essential.The key to successful AI data licensing lies in adopting a hybrid model that considers the specific use case as well as the unique needs of both parties. This model provides rights holders with upfront compensation and allows AI developers to access high-quality data without ongoing financial obligations. However, for more extensive or commercial applications, a revenue share model can be a mutually beneficial approach.Under this arrangement, rights holders receive a percentage of the revenue generated by the AI-powered products or services that utilize their licensed data, similar to a royalty pool utilized by streaming services.