are we no longer allowed to borrow books from friends?
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Yeah, but if you wanna act out the contents of the book and sell it as a movie, you need to buy the rights.
Yes but there's a threshold of how much you need to copy before it's an IP violation.
Copying a single word is usually only enough if it's a neologism.
Two matching words in a row usually isn't enough either.
At some point it is enough though and it's not clear what that point is.
On the other hand it can still be considered an IP violation if there are no exact word matches but it seems sufficiently similar.
Until now we've basically asked courts to step in and decide where the line should be on a case by case basis.
We never set the level of allowable copying to 0, we set it to "reasonable". In theory it's supposed to be at a level that's sufficient to, "promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." (US Constitution, Article I, Section 8, Clause 8).
Why is it that with AI we take the extreme position of thinking that an AI that makes use of any information from humans should automatically be considered to be in violation of IP law?
Making use of the information is not a violation -- making use of that violation to turn a profit is a violation. AI software that is completely free for the masses without any paid upgrades can look at whatever it wants. As soon as a corporation is making money on it though, it's in violation and needs to pay up.
Google AI search preview seems to brazenly steal text from search results. Frequently its answers are the same word for word as a one of the snippets lower on the page