"When a model is deployed for purposes such as analysis or research — the types of uses that are critical to international competitiveness — the outputs are unlikely to substitute for expressive works used in training," the office said. "But making commercial use of vast troves of copyrighted works to produce expressive content that competes with them in existing markets, especially where this is accomplished through illegal access, goes beyond established fair use boundaries."...

"Unlike cases where copying computer programs to access their functional elements was necessary to create new, interoperable works, using images or sound recordings to train a model that generates similar expressive outputs does not merely remove a technical barrier to productive competition," the office said. "In such cases, unless the original work itself is being targeted for comment or parody, it is hard to see the use as transformative."

A day after the office released the report, President Donald Trump fired its director, Shira Perlmutter, a spokesperson told Business Insider.