The Stuff of Models: Intellectual Property & Copyright Concerns

Many AI models rely on data and information that is "scraped" from open sources on the Internet. The assembly and use of this vital "stuff of models" is often done without the knowledge and consent of the owners of the data. Is this theft or merely fair use of intellectual property? And yet, on reflection, who can ever really own an idea?Although the EU has regulations governing data use, many of the largest IT companies are based in the US — and that is where legal battles are currently being waged. Some people assert that denying free and unfettered access to data will necessarily inhibit innovation, while others say just the opposite. It is even suggested that piracy has been one of the historical drivers of capitalism.Actuaries traditionally provide reliance statements when their work product includes information provided by others. How important is it that an actuary i) knows exactly what data has been "captured" to fuel a third party AI tool that they have used, and ii) discloses the use of such a tool to clients and regulators? What happens if an error is found in one's actuarial work product, and that error is subsequently traced back to the use of a generative AI tool? The ethical provenance and responsible use of data is a subject of importance to actuaries as well as those who rely on their work.