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OpenAI says it’s “impossible” to create useful AI models without copyrighted material
(arstechnica.com)
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Photography did "compete" with paintings, or rather, it killed off a very common job for artists which was portraits, landscapes and, to an extent, still lifes. It sparked a whole revolution of (ultra) realistic painting by giving favour to art forms that weren't able to be recreated by photography. For example expressionism became much more liked.
People often mention Photography or Photoshop even as comparable to the current situation. But I think it's not comparable at all.
As you can see from the discussions AI changes how (some) people think about what art is. But not in the way of "let's do art differently" but more like "Artists aren't really doing anything different than what AI does".
I also think it's a different situation because AI attacks artists of many different genres all at ones. You can't just slightly move a different style or art form because AI targets practically everything. With 3D printing etc. not even sculpting is safe.