India’s proposal to make AI firms pay for training on the original work of creators will have more losers than winners

First, let’s consider the AI companies. They will now have to pay a licence fee, which, even if it is a small percentage, will likely be a significant amount since it will be based on their global revenue. However, since AI revenues are derived from subscription and usage-based fees, this is a cost that I expect will be largely passed on to consumers. Which means that, in the long run, this will probably have a minimal impact on their profitability.