Can Blockchain Tame AI’s IP Problem?

Large language models (LLMs) have surged in capability by leveraging vast datasets, both public and private. This data harvesting raises critical questions about intellectual property (IP) rights, traditionally designed to incentivize innovation and protect creators. The global IP framework, anchored by the TRIPS Agreement and WIPO, now faces unprecedented strain as AI blurs the lines between human and machine creativity.

Without explicit consent or compensation, LLMs routinely train on copyrighted material, undermining the very incentive structure that fuels progress. The risk of digital oligopolies consolidating power through superior compute resources and data access looms large, potentially sidelining smaller players.

Blockchain technology emerges as a potential solution, offering transparent and Immutable record-keeping to track data usage and ensure fair compensation. By embedding IP rights into smart contracts, creators could regain control over their work while fostering a more equitable AI ecosystem.