The AI Data Rush is ON

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Hi this is ZipLaw! Serving news insights hotter than dark leather seats on a hot summer day.

Here’s what we’re serving today:

• The AI Data Rush is ON 🤖
• China’s ETF Frenzy 🇨🇳
• How China became a car-exporting god 🚗

The AI Data Rush is ON 🤖

Remember when we thought Netflix would kill movie theatres? Or kale would end all veggies?

Yeah, Adobe had its own scare like that.

New AI tools were threatening to outdo Adobe's image-editing software, but surprise! Adobe whipped out its new suite of AI tools, Firefly, built on it’s high quality image database.

Adobe’s success offers a key insight into why quality of datasets will be the key to the success of AI models.

Here’s all you need to know?

The AI Data Rush

The two key elements needed to whip up an AI model are akin to the flour and eggs of a digital cake.

• First, you have the datasets, which train the system – think of these as the flour binding everything together.
• Next, there's the processing power that detects relationships within those datasets, sort of like eggs adding structure to the mix.

Now, to a certain degree, these ingredients can substitute for one another: you can improve the model by either piling in more data or ramping up the processing power.

But here's the snag – getting more processing power is becoming like finding a golden goose egg, all thanks to a shortage in specialist AI chips.

So, the AI chefs are getting a bit frantic, doubling down on finding just the right data to perfect their digital delicacies.

And guess what? People want to get paid for it, leading to copyright wars and dramatic court battles.

Why the rush? Well, by 2026, high-quality text could be rarer than a calm day on Twitter. The latest AI models from Google and Meta are trained on over 1trn words. By comparison, the sum total of English words on Wikipedia, an online encyclopaedia, is about 4bn.

⚖️ How does this impact Law Firms?

Intellectual Property and Copyright Law:

• Copyright Infringement Cases: As AI companies are aggressively searching for data, intellectual property lawyers will be involved in handling copyright infringement cases. This includes defending or pursuing claims related to unauthorized use of texts, images, or any other data.
• Licensing Agreements: Lawyers in this field will also negotiate and draft licensing agreements for data use, ensuring that both parties are legally protected and the terms of use are clearly defined.

Data Protection and Privacy Law:

• Compliance with Data Privacy Regulations: Lawyers specialising in data protection will be essential for ensuring that the collection and use of data comply with relevant regulations, such as GDPR in Europe or the UK GDPR.
• Advising on Privacy Risks: These lawyers will also work closely with companies to evaluate potential privacy risks, especially in cases where personal data may be ingested into AI models.

Commercial and Contract Law:

• Drafting and Negotiating Data Acquisition Contracts: Commercial lawyers will be tasked with drafting and negotiating contracts related to data acquisition, clearly outlining the terms, rights, and obligations of both parties.
• Dispute Resolution: Should disputes arise over data usage or contract breaches, commercial lawyers will provide representation in negotiations, mediation, or even litigation to resolve these issues.
  

China’s ETF Frenzy 🇨🇳

China's financial arena has been set abuzz by an unexpected capital influx into four CSI 300 index exchange-traded funds (ETFs), amassing a staggering $4.4 billion within a mere eight trading days (say what?!).

💡 Before we dive in, an Exchange-Traded Fund (ETF) is a unique investment vehicle that allows investors to trade a diversified portfolio of assets, much like stocks, providing exposure to various markets or sectors.

The sudden increase in money has led to guesses about the possible involvement of the "national team" a mysterious phrase used to describe groups connected to the government that have historically helped to calm the stock market during unstable times.

Unprecedented Leader Emerges

Amid this financial buzz, the spotlight gleams on the Huatai-PineBridge CSI 300 ETF, which has surpassed RMB 100 billion ($13.8 billion) in assets under management (AUM).

This feat positions it as the first non-money-market ETF this level of AUM.

Strategic Moves Amidst Market Realities

Some experts say the inflow within a broader market context. Comparing it to the daily turnovers of Shanghai and Shenzhen stock markets—oscillating between RMB 600 billion and RMB 1.2 trillion—offers a perspective on the recent surge's relative significance.

⚖️ How does this impact Law Firms?

Litigation:

With financial shifts come legal disputes. Law firms specializing in arbitration and litigation may find themselves navigating a rising tide of potential conflicts arising from market uncertainties. As investors respond to ETF trends, disputes over investment decisions, alleged misinformation, or regulatory breaches could propel legal activity.

Regulation:

Law firms specializing in financial regulations find themselves on the frontlines as the speculation around the "national team's" involvement unfolds. As market dynamics shift, legal experts must decipher potential regulatory implications and assess whether the "national team" strategy aligns with existing financial guidelines.

Corporate and Financial Services:

• Asset Management Advisory: Lawyers in this field will likely find increased demand in advising on the structuring and management of these large ETFs, ensuring they align with corporate strategies and legal requirements. This includes drafting and negotiating asset management agreements and providing legal insights on the investment strategy.
• Mergers and Acquisitions (M&A): Given the significant capital influx, companies within the CSI 300 may become targets for M&A. Corporate lawyers will play a key role in conducting due diligence, drafting agreements, and navigating the complex regulatory landscape involved in these transactions.

Chart of the day 📊

How China became a car-exporting god 🚗

Think of Germany and Japan as seasoned rock stars of the car world. China's the young, electric guitar-wielding newcomer, rockin' 2.7 million car exports in 2022.

A slow start? Sure.

In 2015, they were exporting barely any cars. But with a little bit of state investment in electric vehicles (a cool $100 billion), they’ve charged ahead like a caffeinated squirrel.

And the West is buying in. Sales to Australia tripled and sales to Spain went up 17-fold! Yeah, you heard it right.

China's shipping cars like Amazon ships… well, everything.

Cheap, electrifying, and revving up fast, China’s export engine is now turbocharged.

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