In the third installment of The Dynamist's series exploring AI and copyright, FAI Senior Fellow Tim Hwang leads a forward-looking discussion about how market dynamics, technological solutions, and geopolitics could reshape today's contentious battles over AI training data. Joined by Jason Zhao, co-founder of Story AI, and Jamil Jaffer, Executive Director of the National Security Institute at George Mason University, the conversation moves beyond current lawsuits to examine practical paths forward.

The discussion challenges assumptions about who really stands to gain or lose in the AI copyright debate. Rather than a simple creator-versus-tech narrative, Zhao highlights how some creators and talents have embraced AI while others have shown resistance and skepticism. Through Story's blockchain-based marketplace, he envisions a world where creators can directly monetize their IP for AI training without going through traditional gatekeepers. Jaffer brings a crucial national security perspective, emphasizing how over-regulation of AI training data could threaten American technological leadership - particularly as the EU prepares to implement strict new AI rules that could effectively set global standards.

Looking ahead to 2025, both guests express optimism about market-based and technological solutions winning out over heavy-handed regulation. They draw parallels to how innovations like Spotify and YouTube's Content ID ultimately resolved earlier digital disruptions. However, they warn that the US must carefully balance innovation and IP protection to maintain its AI edge, especially as competitors like China take a more permissive approach to training data. The episode frames copyright not just as a domestic policy issue, but as a key factor in national competitiveness and security in the AI era.