How Hollywood Threatens U.S. AI Supremacy

The United States and China are in a battle for Artificial Intelligence superiority that will determine who leads the world economically and militarily, and whose values triumph.

China, in gross violation of international law, is stealing intellectual property to the tune of hundreds of billions of dollars annually, obliterating any respect for copyrights, particularly for U.S. producers of that content.

By contrast, in the United States, copyright protection and fair use have long been a staple of our economy. It has powered creativity and innovation, making us the world leaders for both and enabling artists, writers, and others to thrive here as nowhere else.

The rise of AI has raised concerns about fair use and the changes this might bring. One thing AI has not done, though, is remove copyright protections from the law. Technology companies have already signed a bevy of licensing agreements with news and entertainment companies.

This is not surprising. Just as there is artistic writing and other creativity in the United States, so too has there been creativity in finding and assessing ways new technologies can benefit the generators of content. The fallback position, of course, is litigation, which is expensive and whose outcome is uncertain. However, the U.S. District Court for Northern California ruled June 23 that copyrighted books can be used in AI training, a key part of AI model development. 

Dozens of major lawsuits are already underway, and it is time to cool down the temperature on these disputes. Some in Hollywood, though, are driving these suits and taking extreme positions.

Actor Joseph Gordon-Levitt has mounted a campaign to “make a law that says your digital self belongs to you.” As he recently explained on the POLITICO Tech podcast, the aim is that any data produced by a person, even if it is tracked data, would result in some payment.

Such a system is not only unworkable but unfair. A logical extension of this is that I would have a right to sue my high school yearbook company that puts my picture online along with the book if they do not ask my permission or send me a few pennies, or whatever the value is.

The White House can help address this. In a January 23, 2025, Executive Order, President Trump asked for an action plan from select officials in his administration to “enhance America’s AI dominance in order to promote human flourishing, economic competitiveness, and national security.”

Officials should reiterate that using publicly available data to train AI, particularly data and facts, is fair use and essential for additional creative works. The work’s original creative expression remains owned by the creator. Indeed, it may have greater appeal as it spreads through AI.

Without such clarity and direction, China will gain an advantage in AI development, as it speeds ahead unimpeded by legal challenges, threatening to put in place AI systems that not only dramatically harm U.S. creators, but also our country in general.