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Valve appear to be not willing to publish games with AI generated content
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You noticed that, did you? If I ask a small child to draw a picture of a sunflower - and they have never seen a picture of a sunflower, but they are sitting in a field of sunflowers - is it your contention that they would be unable, because they've never seen a picture?
Because I think the small child will manage it. And the AI with no training data won't.
But yes, to answer your broader question, I think it is reasonable to have legislation around automated or large scale processes that don't pertain to something an individual can do. Which is why there is regulation around robocalling, sending spam and photocopying and selling books.
I am not sure why you're starting another thread with me, but I don't think the distinction you're making between a live stream of a flower and a picture of a flower is sensical.
I don't want to get too bogged down in the details of your analogy. (It's really bad.) but in either case, you have to explain what a flower is when you request a picture of a flower. If you ask a child that doesn't speak English to draw you a picture of a "sunflower", they won't be able to do so even if they're sitting in a field of sunflowers.
You make a good point regarding the legislation of the output of an automated process, but we were talking about the input; whether the AI needed to be trained only one works with permission. This is certainly not how the law works now, and I argue that it makes no sense to implement such a law.