As the technology behind artificial intelligence (AI) advances, so does the need for regulation. The US Federal Trade Commission (FTC) is imposing orders on companies to delete algorithms and data due to privacy violations. For companies eyeing to launch AI products, there’s a need to weigh regulatory risks against potential benefits, as made clear in the recent gathering of legal experts at the LegalWeek conference in New York. (Mike Swift, MLex)
At the centre of the conference was the potential of generative artificial intelligence to transform not only the legal sector but a gamut of industries. However, FTC and state enforcement of new privacy laws may serve as roadblocks. To illustrate the risks, the FTC ordered Blackbaud to delete personal data that it doesn’t need to maintain, settling allegations that the company had poor security and misled its users about the gravity of a 2020 data breach.
New privacy laws instituted by US states can introduce not only regulatory but also business risks for companies investing in AI tools. “Organizations need to be careful about how they’re using personally identifiable information and giving consumers the opportunity to opt out of those things,” warns Garylene Javier of the firm Crowell & Moring.
The discussion at the conference also conveyed skepticism from current and former federal judges regarding the immediate role of AI in court proceedings. With generative AI stemming cases that didn’t exist before, every lawyer needs to be on notice to carefully proceed and verify citations when using AI, says US Magistrate Judge Sarah Cave.
The FTC’s recent order against Blackbaud illustrates the agency’s stance on indefinite retention of consumer data, which poses a risk as it can entice hackers and escalate breach-related damages.
As AI continues to disrupt and transform various sectors globally, it’s essential for firms to grapple with the evolving legal and regulatory implications. Companies must carefully tread the waters of AI deployment, thoughtfully assessing potential privacy and security issues.
In conclusion, the globally-reaching impact of AI doesn’t just act as an innovation challenge for companies seeking to streamline their operations but also as a complex regulatory maze that legal professionals need to navigate.