No, grandma won't be compensated because she's not the data owner and she doesn't have a copyright on her recipe.
Who get compensated currently are all the recipe websites that have the grandma recipe on it and gain money from ads (likewise when the recipe is in a book grandma won't get any money either)
AI comes and does not output a new version of the recipe, you ask ChatGPT to get you a recipe for a specific type of pasta and it will write it down, without visiting any of the 100 and more website that have these information (thus don't get money generated from the missing traffic)
Then the question on derived data (e.g. a net new recipe) is different and probably is hard to draw a line, but it's still thanks to the original data that the model has been able to get that new recipe.
I don't know how they should be compensated, but I'm pretty sure that data owner should be compensated. Either upfront (e.g. pay X to get our data) or on usage (e.g. every time the model infer information from a specific owner then it must reward - revenue sharing).
Of course the first approach is easier while the second is more convoluted
Who get compensated currently are all the recipe websites that have the grandma recipe on it and gain money from ads (likewise when the recipe is in a book grandma won't get any money either)
AI comes and does not output a new version of the recipe, you ask ChatGPT to get you a recipe for a specific type of pasta and it will write it down, without visiting any of the 100 and more website that have these information (thus don't get money generated from the missing traffic)
Then the question on derived data (e.g. a net new recipe) is different and probably is hard to draw a line, but it's still thanks to the original data that the model has been able to get that new recipe.
I don't know how they should be compensated, but I'm pretty sure that data owner should be compensated. Either upfront (e.g. pay X to get our data) or on usage (e.g. every time the model infer information from a specific owner then it must reward - revenue sharing).
Of course the first approach is easier while the second is more convoluted