Fagan on Training Data Governance

Frank Fagan (South Texas College Law Houston) has posted “Training Data Governance” (NYU Journal of Intellectual Property & Entertainment Law, Vol. 15, pp. 227-64 (2026)) on SSRN. Here is the abstract:

As AI-generated summaries increasingly displace traditional search results, users are less likely to visit the underlying websites where content is published. This shift has sharply reduced traffic to those sites, threatening the economic viability of content creators and prompting a wave of paywalls, restrictions, and litigation. With referral-based revenue in decline, the continued supply of high-quality content faces mounting risk, precisely as generative AI has grown more dependent on such material. This tension, between innovation and sustainability, frames the central legal and policy inquiry of training data governance: how to preserve access to essential AI training inputs without undermining the incentives to produce them.

This Article examines licensing as a tool of training-data governance and focuses on the practical question of when content loss threatens model performance and reduces social welfare. The inquiry centers on whether withdrawal of high-value material is likely and whether voluntary bargaining can realistically prevent it. Where the risk of withdraw is low, additional protection is unnecessary; where the risk is substantial and bargaining fails, a narrowly tailored fallback, such as a standardized, non-exclusive license, can preserve access without disturbing fair-use doctrine or existing private arrangements. This welfare logic is implemented through a three-part test: licensing is warranted only when (1) the content has demonstrable value for AI training, (2) withdrawal is the rational market outcome absent remuneration, and (3) voluntary licensing fails due to transaction costs or bargaining frictions. Together, these conditions ensure that intervention occurs only where it improves overall welfare relative to the status quo.

Zhang et al. on The Regulatory Landscape of Generative AI in Education and the Future of Student Psychological Well-being —— A Comparative Analysis of EU and Chinese Legislation

Shengyin Zhang (Guizhou Normal U) and Jidong Wang (Northeast Normal U) have posted “The Regulatory Landscape of Generative AI in Education and the Future of Student Psychological Well-being —— A Comparative Analysis of EU and Chinese Legislation” on SSRN. Here is the abstract:

This research is intended to undertake a thorough comparative analysis of the applicability of the EU AI Act and China’s Interim Measures for the Administration of Generative AI Services within the realm of education.As generative artificial intelligence (Generative AI) becomes increasingly prevalent in educational settings, its implications for students’ learning patterns, cognitive development, and mental well-being have emerged as a central topic of global concern.By means of a meticulous examination of the texts of these two major regulations, and in conjunction with relevant expert perspectives and academic research findings, this paper systematically dissects the core disparities in their regulatory philosophies and regulatory pathways.Particular emphasis is placed on exploring potential regulatory gaps in safeguarding the mental health of students, especially minors. Additionally, this paper offers forward-looking recommendations for the refinement of future related policies.

Scattarreggia on AI-Driven Smart Contracts: Enhancing Consumer Protection or Exacerbating Consumer Protection Challenges?

Emanuele Scattarreggia (The U Sydney) has posted “AI-Driven Smart Contracts: Enhancing Consumer Protection or Exacerbating Consumer Protection Challenges?” (Journal of Law, Market & Innovation, Volume 4, No. 3, 2025. Pp. 607-636. https://doi.org/10.13135/2785-7867/12837) on SSRN. Here is the abstract:

The integration of artificial intelligence (AI) into smart contracts holds the potential to both enhance and exacerbate consumer protection challenges. Since the AI system embedded within the contract’s code enables a high degree of contractual personalisation – by tailoring the legal agreement to the unique characteristics of the targeted individual consumer, thanks to its capacity to process large amounts of personal and behavioural data in real time – it opens the door not only to scenarios of AI-powered consumer manipulation, but also to the promising opportunity of a consumer-centric AI. Such an AI would serve the consumer’s best interests by adapting the contract to their specific needs and preferences, while protecting them from – rather than exploiting – their information, cognitive, and digital vulnerabilities. This research aims to assess whether the EU legal framework – particularly the UCPD, UCTD, AI Act, GDPR, and DSA – adequately ensures that these technologies are designed and deployed with the consumer’s well-being at their core. The paper explores AI-related risks such as digital manipulation, personal data exploitation, and the black-box problem inherent in algorithmic opacity, while also addressing the liability challenge in cases of consumer harm. Ultimately, it seeks to answer whether AI-driven smart contracts can truly foster a high level of consumer protection in the AI era, by offering novel interpretations of the existing legal framework and advancing proposals for reform aligned with the fairness-by-design approach and informed by behavioural science insights.

Max on High vs. Low AGI: Ontology and Conceptual Taxonomy for Geopolitical Coherence

Antonio Max (Principal Researcher) has posted “High vs. Low AGI: Ontology and Conceptual Taxonomy for Geopolitical Coherence” on SSRN. Here is the abstract:

The rapid progression of Artificial General Intelligence (AGI) research demands conceptual tools capable of distinguishing between systems developed for open, commercial integration and those destined for sovereign, securitized deployments. Without such distinctions, risk assessments and regulatory debates collapse AGI into legacy dual-use frameworks that are ill-suited for these resources, capturing the possibility of civilian and military application but overlooking the distinct societal lineages yielded by corporate and state-grade architectures. This paper proposes a taxonomy distinguishing low-AGI and high-AGI, clarifying how commercial-economic and security-sovereign architectures can be distinguished not only by function, but by the social and political ecosystems that produce them. The taxonomy builds on international relations concepts of “high/low politics,” viewed through the lens of construal-level theory, which allows it to even capture how cooperation and conflict may coexist in the context of AGI’s emerging geopolitical stakes. By embedding AGI within power structures and securitization theory, this contribution extends dual-use discourse through an ontological taxonomy that enables more granular risk assessment and governance design-equipping policymakers and researchers to anticipate security dilemmas, institutional demands, and technical-political spillovers in the international system.

Liu et al. on China and Regulation of Artificial Intelligence

Mingwei Liu (Rutgers Management and Labor Relations New Brunswick) and Yi Sui (Renmin U China) have posted “China and Regulation of Artificial Intelligence” on SSRN. Here is the abstract:

China has emerged as a global leader in regulating artificial intelligence (AI). By analyzing major national AI-related policies and regulations, we argue that the Chinese state adopts an instrumental approach to shaping AI policies. This approach seeks to balance efficiency and security, influenced by multiple stakeholders, including tech firms, trade unions, intellectuals, journalists, workers, and the public, as well as emerging global norms of AI governance. Furthermore, China’s regulatory approach to AI is extending its global influence through AI infrastructure projects in “Belt and Road” countries, advocacy in international forums, and its participation in international technical standards bodies.

Helkala et al. on Deadbot Ethics: A Review and Analysis of Current Research

Kirsi Helkala (Norwegian Defence U College) and Carl Leichter (Norwegian Defence U College) have posted “Deadbot Ethics: A Review and Analysis of Current Research” on SSRN. Here is the abstract:

Chatbot services are a growing industry that provide digital conversation companions, where users are able to specify the appearance and behaviour of their chatbot friends. Deadbots use the same chatbot technology, but their behaviour and appearance are based on those of a real person who is now deceased.For our framework in this article, we will use the Ryan & Stahl (2020) ethical principles for AI system development and utilization. To identify the scope and extent to which current research has already studied the ethical principles related to deadbots, we start with a narrative literature review. Then we examine how the EU’s AI Act can partially mandate their ethical development and utilization. Finally, we discuss what measures could be taken to ensure that the remaining ethical principles are also mandated.

Gallese et al. on Dataset Assessment Tools for the AI Act Compliance of High-Risk AI Systems

Chiara Gallese (Tilburg U Tilburg Institute Law) and Elena Falletti (Carlo Cattaneo LIUC U) have posted “Dataset Assessment Tools for the AI Act Compliance of High-Risk AI Systems” (https://doi.org/10.13135/2785-7867/12840) on SSRN. Here is the abstract:

The European Union’s Artificial Intelligence Act (AI Act), effective as of August 2024, introduces stringent data governance requirements for high-risk AI systems. Central to these obligations is the mandate for data used in training, validation, and testing to be subject to rigorous quality controls and governance practices aligned with the system’s intended purpose. This paper examines the AI Act’s novel emphasis on responsible data handling as a foundation for mitigating bias, ensuring safety, and protecting fundamental rights. It argues that while existing scholarship largely focuses on algorithmic fairness at the model level, insufficient attention has been given to fairness embedded within the data itself. Addressing this gap, the paper explores the complex ethical and epistemological tensions inherent in defining “fairness”, and critiques current policy frameworks for their narrow focus on technical fixes. The study highlights the FAnFAIR tool as a pioneering approach to data fairness evaluation, offering a hybrid methodology that integrates automated statistical diagnostics with qualitative, context-aware assessments. FAnFAIR aligns its features with the AI Act’s legal mandates and facilitates compliance through continuous bias monitoring, data quality enhancement, and informed decision-making about dataset suitability. This paper provides a socio-legal and technical analysis of data governance under the AI Act, advocating for a shift toward embedded ethical oversight throughout the AI lifecycle and, in particular, in the data processing phase.

Richards on Privacy Is Not Theft

Neil M. Richards (Washington U Law) has posted “Privacy Is Not Theft” on SSRN. Here is the abstract:

Something curious has happened to privacy recently. In our post-pandemic age of generative AI, tech companies and governments have stopped asking for our data or relying on fictions of implied consent. They have simply started taking it, arguing that data collection is inevitable, necessary, and virtuous. As masked federal agents prowl American streets sticking facial recognition scanners in the faces of suspected undocumented aliens and as AI companies lament the lack of personal data to train their foundation models, there is a sense that some think privacy is getting in the way of the future. In their view, protections for human data are a kind of theft against convenience, a theft against safety, and a theft from the stockpile of personal data our machines need to create a frictionless future of leisure, abundance, and entertainment.

We’ve seen this idea before, but until recently only in the realms of farce and dystopian satire. Dave Eggers’ 2013 novel The Circle envisioned a sinister social network—a kind of Facebook on steroids—whose founders espoused a series of silly and dystopian mantras, including the idea that “Privacy Is Theft.” In the novel, the company uses these principles as the basis for their business, and by extension, a radically anti-privacy reworking of near-future society. Foreseeably dystopian hijinks ensue. Life imitates art, indeed, as a series of products and practices in our non-fictional world have begun to reflect the mantra that “Privacy Is Theft,” suggesting that indiscriminate data collection is both (1) inevitable and (2) virtuous.

This essay uses Jonathon Penney’s new book on chilling effects in connection with the broader trans-disciplinary and trans-Atlantic scholarship on what privacy is and why it matters to critique the way some powerful entities have started to talk about privacy as a kind of theft.  Penney’s work shows the hollowness of these curious suggestions that privacy is no longer a fundamental right but rather a kind of theft from the future, or at least a theft from people who think they are building a most excellent future for themselves and want your information as raw material to do that. The essay presents a few recent technological developments, explains the ideology of Privacy-as-theft that underlies them, and suggests that Penney’s work allows us to better deconstruct that ideology and helps us to understand why they it is problematic, and how the law is failing us—at least if we still care about things like democracy, eccentric individuality, and the development of new, heretical ideas. My claim here is a simple one—that privacy is not actually theft, but an essential value that we need to protect if we want to continue to live in societies that preserve individual rights, self-government diversity, and just plain eccentric weirdness. The real thieves are the ones who want your data and complicity and who are building unnecessary tools to steal it.

My argument proceeds in four steps. Part I presents the ideology of Privacy As Theft in The Circle. Part II discusses three new technological developments embodying this shift—Meta’s aggressive marketing of its “smart” glasses, the use of facial recognition tools by ICE personnel seeking undocumented immigrants, and Zoom’s presumption that all meetings should be transcribed and assessed by its artificial intelligence tools. Part III explores Penney’s work on chilling effects in the context of the broader literature, showing how at the level of theory and at that of empirical social science, privacy is necessary to any society that aspires to individuality, eccentricity, and/or political freedom. Part IV shows how the ideology of Privacy As Theft is not just hogwash, but hogwash in pursuit of a much greater theft of its own—the power to dictate what kind of society we will inhabit in the future.

Marchant et al. on Private Standards as Liability Shields: A Pro-Innovation Artificial Intelligence Regulatory Approach for States

Gary E. Marchant (Arizona State U College Law) and Jordan Buckwald (Independent) have posted “Private Standards as Liability Shields: A Pro-Innovation Artificial Intelligence Regulatory Approach for States” on SSRN. Here is the abstract:

States face a dilemma. The federal government is not regulating artificial intelligence (AI), and is threatening states that regulate the technology with preemption and funding restrictions. Moreover, piecemeal state regulation with different substantive requirements risks impeding AI innovation and harming our national interest and security. And yet, AI creates a whole host of problems relating to accuracy, safety, security, bias, transparency, privacy, and autonomy that needs to be governed. This Article presents a solution to this dilemma that can protect against AI risks without harming innovation and the national interest. The proposal is for states to provide a liability shield for AI systems that conform to recognized comprehensive risk management standards. After discussing the proposed solution, as well as drawbacks to the model, the analysis concludes that these liability shields are a simple, positive step that states can take to both promote AI innovation and protect their citizens from risks.

Magnuson on Artificially Intelligent Markets

William J. Magnuson (Texas A&M U Law) has posted “Artificially Intelligent Markets” (Harvard Business Law Review, Vol. 16, Forthcoming) on SSRN. Here is the abstract:

A remarkable transformation is taking place in our financial markets.  The rise of machine learning algorithms and other artificial intelligence models has rapidly overtaken older methods of financial decisionmaking, and the consequences of the revolution are beginning to be felt across the capital markets ecosystem, from stock exchanges to derivatives markets to currency trading.  These new technologies offer great promise, including more accurate prices, faster transactions and more efficient trading.  But they also create risks.  From flash crashes to insider trading algorithms to adversarial attacks, artificial intelligence presents a range of unique vulnerabilities that could lead to significant and wide-ranging harm to our financial system.  Legal frameworks devised to structure and constrain financial institutions, in turn, are ill-equipped to deal with these harms because they were designed based on outdated assumptions about the structure of markets, as well as the nature of its primary actors. This Article offers the first comprehensive account of the economic, political and legal consequences of the rise of artificially intelligent markets.  It demonstrates how the major driver of this shift has been the hedge fund industry, an opaque and lightly regulated sector of the financial ecosystem that has long been an early-adopter of financial technology.  It concludes by proposing a series of escalating regulatory reforms that might better fit financial regulation to our new artificially intelligent markets.