[The AI Show Episode 157]: Anthropic Wins Key Copyright Lawsuit ...
Serious about learning how to use AI? Sign up for our AI Mastery Membership. AI is reshaping hiring, law, and business strategy. Join Mike and Paul as they unpack Anthropic’s major legal win over authors suing for AI training data use, explore the tsunami of AI-generated resumes flooding recruiters, and analyze why OpenAI is now doing high-ticket consulting. They also weigh Salesforce’s claim that AI does half its work, Meta’s billion-dollar talent raids, and OpenAI’s mysterious hardware rebrand drama. Listen or watch below—and see below for show notes and the transcript.
Anthropic Wins Key Lawsuit Against Authors
A federal judge just handed Anthropic a win in a high-stakes copyright case that could shape the future of AI. The court ruled that Anthropic’s use of copyrighted books to train its language model Claude qualifies as “fair use.” Judge William Alsup called it “quintessentially transformative,” likening Claude to a writer learning from other authors—not copying them, but using their work to create something new.
That’s a big deal for AI companies, which argue that their systems depend on vast training data to generate original outputs, and that they have a right to use data online as part of “fair use.” This is the first court to explicitly endorse fair use as a defense for what AI companies are doing to train models. But the win isn’t complete. The judge also found that Anthropic went too far by downloading over 7 million pirated books from shadow libraries. That, he said, was copyright infringement—and a trial in December will decide how much Anthropic owes.
AI’s Impact on Hiring and HR
A new report in The New York Times highlights a growing AI-related problem: Job seekers are unleashing a wave of AI-generated résumés—and recruiters are drowning in them. On LinkedIn alone, job applications have jumped over 45% in a year, with users submitting about 11,000 every minute. Tools like ChatGPT can instantly customize résumés to match any job posting, while more advanced AI agents now automate the entire process—scanning job boards, filling out applications, and even answering screening questions.
The result? What recruiters are calling an “applicant tsunami.” Many résumés look nearly identical, and it’s getting harder to tell who’s actually qualified or even real. Some candidates are faking identities. Others are using AI to cheat in automated interviews. To keep up, employers are fighting AI with AI—using automated interviews, game-based assessments, and even bots like Chipotle’s “Ava Cado” to screen and schedule faster. But that raises its own risks: AI hiring tools have faced lawsuits over bias, and regulators in the EU are already labeling them high-risk.
OpenAI Is Now Doing Consulting
OpenAI is getting into high-touch consulting, mimicking the model popularized by defense tech company Palantir. OpenAI is now offering fine-tuned, enterprise-grade AI solutions built by its own engineers, but only to clients willing to spend at least $10 million. These custom services involve tweaking models like GPT-4o using a company’s proprietary data, then building apps—often chatbots—tailored to specific business needs.
This puts OpenAI in direct competition with consulting giants like Accenture and software firms like Palantir, whose "forward deployed engineers" it’s quietly been hiring to build out its own consulting team. Clients already include the Pentagon—which signed a $200 million deal—and Southeast Asia’s Grab, which used OpenAI to map roadways using street-level imagery. OpenAI says these partnerships are about solving harder, billion-dollar problems—and giving customers insight into what’s next, including future enterprise uses for the AI-powered device it’s co-developing with former Apple designer Jony Ive.
