Earlier quoted context omitted.
Courts (at least in the US) have already ruled that use of ingested data for training is transformative. There’s lots of details to figure, but the genie is out of the bottle. Sure it’s a big hill to climb in rethinking IP laws to align with a societal desire that generating IP continue to be a viable economic work product, but that is what’s necessary.
I’m curious … So “transformative” is not necessarily “derivative”? Seems to me the training of AI is not radically different than compression algorithms building up a dictionary and compressing data. Yet nobody calls JPEG compression “transformative”. Could one do lossy compression over billions of copyrighted images to “train” a dictionary?
(not legal advice)
Transformative works are necessarily derivative, but that transformation allows for a legal claim to "fair use" regardless of making a derived work.