A Sustainable AI Economy Needs Data Deals That Work for Generators
This addresses a foundational problem for data generators and the sustainability of AI economies, with incremental contributions in proposing a framework.
The paper tackles the unsustainable economic inequality in the machine learning value chain, where data generators receive minimal value, and proposes an Equitable Data-Value Exchange Framework to address this issue, based on analysis of 73 public data deals showing creator royalties rounding to zero.
We argue that the machine learning value chain is structurally unsustainable due to an economic data processing inequality: each state in the data cycle from inputs to model weights to synthetic outputs refines technical signal but strips economic equity from data generators. We show, by analyzing seventy-three public data deals, that the majority of value accrues to aggregators, with documented creator royalties rounding to zero and widespread opacity of deal terms. This is not just an economic welfare concern: as data and its derivatives become economic assets, the feedback loop that sustains current learning algorithms is at risk. We identify three structural faults - missing provenance, asymmetric bargaining power, and non-dynamic pricing - as the operational machinery of this inequality. In our analysis, we trace these problems along the machine learning value chain and propose an Equitable Data-Value Exchange (EDVEX) Framework to enable a minimal market that benefits all participants. Finally, we outline research directions where our community can make concrete contributions to data deals and contextualize our position with related and orthogonal viewpoints.