Companies have a similar problem now with AI than what the music labels had with Napster and MP3s in the 90's. Music labels tried very hard to legislate the problem away but it failed. I remember Metallica's Lars Ulrich working hard to fight it. They finally embraced the change. If it can't be done in the U.S., it will be done in some other country. That country will have the competitive advantage.
We'll go thru the same with AI but ultimately it won't be stopped. As long as there's no world wide coordination limiting its impact, AI will continue its course.
They did legislate the problem away. Sure, Spotify and YouTube play a part in the reduced music piracy today. But it also helps that all of the music piracy sites have been killed, and the only ones left are shady enough that you fear malware if you go there.
YouTube didn't get sued early on because it didn't have any money to sue. After it was acquired, it was sued, and the current system is the agreement that Google and the rights holders came to (which has been incredibly profitable for both sides).
There is a load of pirated content on there, but YouTube have successfully cowed every creator with a decent-sized audience into fearing more than a second or two of copyrighted music appearing in their videos.
We'll go thru the same with AI but ultimately it won't be stopped. As long as there's no world wide coordination limiting its impact, AI will continue its course.