Earlier quoted context omitted.
> AI doesn't actually directly copy the material it trains on Of course it does. Large models are trained on gigantic clusters. How can you train without copying the material to machines in the cluster?
“Copy” is ambiguous here. Of course data is copied during training. That said, OP is referring to whether the resulting model is able to produce verbatim copies of the data.
If I produce a terrible shakycam recording of a film while sitting in a movie theater, it's not a verbatim copy, nor is it even necessarily representative of the original work -- muddied audio, audience sounds, cropped screen, backs of heads -- and yet it would be considered copyright infringement?
How many times does one need to compress the JPEG before it's fair use? I'm legitimately curious what the test is here.