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Cloze Encounters: The Impact of Pirated Data Access on LLM Performance

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  • Stella Jia
  • Abhishek Nagaraj

Abstract

Large Language Models (LLMs) have demonstrated remarkable capabilities in text generation, but their performance may be influenced by the datasets on which they are trained, including potentially unauthorized or pirated content. We investigate the extent to which data access through pirated books influences LLM responses. We test the performance of leading foundation models (GPT, Claude, Llama, and Gemini) on a set of books that were and were not included in the Books3 dataset, which contains full-text pirated books and could be used for LLM training. We assess book-level performance using the “name cloze” word-prediction task. To examine the causal effect of Books3 inclusion we employ an instrumental variables strategy that exploits the pattern of book publication years in the Books3 dataset. In our sample of 12,916 books, we find significant improvements in LLM name cloze accuracy on books available within the Books3 dataset compared to those not present in these data. These effects are more pronounced for less popular books as compared to more popular books and vary across leading models. These findings have crucial implications for the economics of digitization, copyright policy, and the design and training of AI systems.

Suggested Citation

  • Stella Jia & Abhishek Nagaraj, 2025. "Cloze Encounters: The Impact of Pirated Data Access on LLM Performance," NBER Working Papers 33598, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:33598
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    More about this item

    JEL classification:

    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation

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