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We considered strongly interacting systems of effective spins, subject to dissipative spin-flip processes associated with optical pumping. We predicted the existence of novel magnetic phases in the steady state of that system, which emerged due to the competition between coherent and dissipative processes. Specifically, for strongly anisotropic spin-spin interactions, we found ferromagnetic, antiferromagnetic, spin-densitywave, and staggered-XY steady states, which were separated by nonequilibrium phase transitions that met at a Lifshitz point. Those transitions were accompanied by quantum correlations, which resulted in spin squeezing. Experimental implementations in ultracold atoms and trapped ions were discussed.

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