To me, the particular use case and whether it is fair use or not, is of minor interest. A far more pressing matter is at hand: AI centralization and monopolization. Take Google as an example, running Google Photos for free for several years. And now that this has sucked in a trillion photos, the AI job is done, and they likely have the best image recognition AI in existence. Which is of course still peanuts compared…
But I'm not too worried here because everyone gets access to larger datasets every year, and it gets cheaper to process every year, so whatever Microsoft or Google is capable of doing now, smaller companies will be capable of doing in a few years.