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That’s something that can currently be done by a human and is generally considered fair use.
That’s kind of the point though isn’t it? Fair use is only fair use because it’s a human doing it, not an algorithm.
That is not actually one of the criteria for fair use in the US right now. Maybe that’ll change but it’ll take a court case or legislation to do.
I am aware of that, but those rules were written before technology like this was conceivable.