American stock image and video supplier Getty Images (NYSE:GETY) is providing uncapped indemnification to users of its new artificial intelligence (AI) image-generating tool. As per a Financial Times report, the visual content creator will protect its more than 800,000 users from any legal or financial responsibility arising from the usage of its new AI tool under copyright disputes.
On Monday, Getty launched its new tool, Generative AI by Getty Images, which creates images based on user prompts. The tool is trained on the 135 million images from Getty’s own image library, including copyrighted content. Generative AI by Getty Images was developed in partnership with chip maker Nvidia (NASDAQ:NVDA).
At the same time, Getty also announced a recurring payment plan for those artists whose images were used for training the new AI model. The initial payment will be relatively smaller but will effectively grow into “material revenue streams” as the products and the generative AI market grow in size, CEO Craig Peters said.
Increasing Popularity of AI Tools
Text-to-image AI tools are trained by scraping the millions of images available on the internet, social media platforms, blogs, and stock image archives. The unique feature of Getty’s image-generating tool is that any photographs produced with it will belong exclusively to the user and won’t be added to the company’s already-existing collection of images. The company is taking care to maintain the distinction between original content and AI-generated images in its database.
A global debate on the illegal usage of original content to train AI models has arisen since the onset of ChatGPT and the various text-to-image tools. Content creators are voicing their discontent and demanding adequate compensation for their work. While not all AI model providers believe that compensating the original content creators is right, Peters believes that “people that are using these tools, at least in the commercial sense, value their own creativity, and therefore they value the creativity and the work of others.”
Moreover, he believes that creating intellectual property-protected tools and safeguarding the interests of its users is the right path forward. Hence, Getty has decided to indemnify its users from any potential copyright disputes. Getty’s plan follows a recent announcement by Microsoft (NASDAQ:MSFT) to indemnify its users from any potential legal claims for using its AI CoPilot tool.
Is GETY Stock a Good Buy?
On TipRanks, GETY stock has a Moderate Buy consensus rating based on four Buys and two Hold ratings. Also, the average Getty Images price forecast of $6.33 implies 3.8% upside potential from current levels. Meanwhile, GETY stock has gained 7.2% so far this year.
Moreover, investors looking for the most accurate analyst for GETY could follow Ronald Jessy of Citi. Copying the five-star analyst’s trades on this stock and holding each position for one year could result in 100% of your transactions generating a profit, with an average return of 25.38% per trade.
