How the Bipartisan Personal Data Protection Act Could Reshape Big Tech & AI in 2025?

Artificial intelligence (AI) platforms have been accused on various instances of stealing user data and swallowing research articles and books without permission. When renowned authors, including the blockbuster writers such as George R.R. Martin, Jodi Picoult, Jonathan Franzen, and George Saunders, filed a lawsuit against ChatGPT’s maker OpenAI in 2023, the company defended their side by pointing to a provision in copyright law that allows people to get inspiration from a work if the final output is sufficiently different from the original.

However, following the arrival of similar complaints and in-depth discussions, the administration is seriously reconsidering a reform of the previous copyright and data protection acts. Recently, a new bunch of writers appealed to Congress for help in restricting piracy by AI. David Baldacci, the bestselling author of legal thrillers and a notable writer among the petitioners, accused ChatGPT of stealing his work and expressed the fear of getting replaced.

More than 40 recent complaints against AI tools, mainly from book authors and publishers, revealed that bulk downloads of millions of PDF books helped various AI companies to enlarge their LLMs. Sen. Josh Hawley, chair of the Senate Judiciary subcommittee on crime and counterterrorism, stated that it is the largest intellectual property theft in American history.

In this context, Sen. Josh Hawley and Sen. Richard Blumenthal have introduced a new bill that will allow people to sue tech companies if they find that their data has been pirated to train AI models. Named as the AI Accountability and Personal Data Protection Act, it is expected to restrict AI companies from stealing copyrighted material.

What is the AI Accountability and Personal Data Protection Act?

Formed by Senators Hawley & Blumenthal, the AI Accountability and Personal Data Protection Act aims to prevent the forbidden use of personal data, particularly in the context of emerging AI technologies that have been accused of using bulk unauthorised data.

As an ambitious proposal, the bill establishes a clear regulatory framework against any appropriation, use, collection, processing, sale, or other exploitation of personal data without consent.

AI Act’s Impact on Big Tech & AI in 2025

​In a statement, Hawley said that AI companies were robbing the American people blind while leaving artists, writers, and other creators with zero recourse. He added that it was time for Congress to give the American worker their day in court to protect their personal data and creative works.

​Blumenthal stated that tech companies must be held accountable and legally liable when they breach consumer privacy by collecting, monetising, or sharing personal information without express consent. He emphasised that consumers should be given rights and remedies, along with legal tools to enforce them, rather than relying solely on government enforcement.

If passed, the bill is expected to create radical changes in the approach of Big Tech & AI towards data. AI Companies will stop collecting data without knowledge of the parties concerned, and generative AI systems will likely shift towards an open-source approach, where they will omit all the copyrighted materials from the database. LLMs will be divided into private and public versions, and there is a strong chance that the public version will adopt blockchain technology.

More From This Section: ChatGPT Agents: What Are They? How Do They Transform Our Lives?

Other Important U.S. Bills to Protect Privacy

Apart from the AI Accountability and Personal Data Protection Act, there are various Data Privacy Laws in the U.S., reshaping how individuals and organisations manage data. While the American Data Privacy and Protection Act (ADPPA), introduced in 2022, failed to get approval from the bipartisan votes, the American Privacy Rights Act (APRA) of 2024, introduced by Senator Maria Cantwell and Representative Cathy McMorris Rodgers, is expected to get a green signal.

The US State Data Privacy Laws (Pre-2025), a mixture of state-driven privacy laws due to the absence of a grand federal legislation, vary from state to state but share common ideas of consumer data rights. Consumer Privacy Act (CCPA) & California Privacy Rights Act (CPRA) are also important data privacy laws.

Final Thoughts

The AI Accountability and Personal Data Protection Act, if passed, will restrict AI-driven Big Tech companies from stealing copyrighted works of individuals. It will build a federal tort for data misuse and ensure robust remedies. However, the defence of AI companies against the act, which is yet to arrive, will complicate the passing of the bill.