AI companies argue that their systems make fair use of copyrighted material to create new, transformative content.

Tech companies are celebrating a major ruling on fair use for AI training, but a closer read shows big legal risks still lay ahead.

In a test case for the artificial intelligence industry, a federal judge has ruled that AI company Anthropic didn’t break the law by training its chatbot Claude on millions of copyrighted books. But the company is still on the hook and must now go to trial over how it acquired those books by downloading them from online “shadow libraries” of