Articles Posted in Artificial Intelligence

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Reliability, security, and legal compliance. These are assurances that customers purchasing technology products expect from their providers, and which are often required as part of the contracts for such products. AI Providers, however, are lagging in their willingness to contractually commit to such assurances, let alone deliver in practice. Thus, as AI products grow in both popularity and technical complexity, robust testing tools become indispensable. Unfortunately, utilization of such tools may unwittingly expose companies to legal risks, particularly in that user testing breaches the use rights, license restrictions, or allocation of intellectual property rights to which the parties commit in the contract for the AI product.

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Since the release of OpenAI’s ChatGPT, the intense hype around large language models (LLMs) and complex AI systems has exploded. Organizations have rushed to both try and buy these new tools. Along with it, a flood of commentary continues to flow regarding how to use the tools productively and responsibly, along with the legal issues that might arise through such use. Those topics are certainly novel—but when it comes to procuring AI tools, what if the key to successfully purchasing the products is not?

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GettyImages-804492304-300x200The Council of the European Union and the European Parliament reached a provisional agreement on a new comprehensive regulation governing AI, known as the “AI Act,” late on Friday night (December 8, 2023). While the final agreed text has not yet been published, we have summarized what are understood to be some of the key aspects of the agreement.

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https://www.internetandtechnologylaw.com/files/2023/11/1200px-Competition_and_Markets_Authority.svg_-300x155.pngThe Competition and Markets Authority (CMA), the UK’s competition regulator, announced this month that it plans on publishing an update in March 2024 to its initial report on AI foundation models (published in September 2023). The update will be the result of the CMA launching a “significant programme of engagement” in the UK, the United States and elsewhere to seek views on the initial report and proposed competition and consumer protection principles.

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GettyImages-1386414642-1-300x200The United Kingdom hosted an Artificial Intelligence (AI) Safety Summit on November 1 – 2 at Bletchley Park with the purpose of bringing together those leading the AI charge, including international governments, AI companies, civil society groups and research experts to consider the risks of AI and to discuss AI risk mitigation through internationally coordinated action.

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GenAI-workplace-1488370396-scaled-e1683821460389-300x280The use of generative AI tools, like ChatGPT, are becoming increasingly popular in the workplace. Generative AI tools include artificial intelligence chatbots powered by “large language models” (LLMs) that learn from (and share) a vast amount of accumulated text and interactions (usually snapshots of the entire internet). These tools are capable of interacting with users in a conversational and iterative way with a human-like personality, to perform a wide range of tasks, such as generating text, analyzing and solving problems, language translation, summarizing complex content or even generating code for software applications. For example, in a matter of seconds they can provide a draft marketing campaign, generate corresponding website code, or write customer-facing emails.

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Innovation has historically been driven by companies in regulated industries—e.g., financial services and health care—and some of the most intriguing use cases for generative AI systems will likely transform these industries.

At the same time, regulatory scrutiny could significantly hamper AI adoption, despite the current absence of explicit regulations against the use of AI systems. Regulators are likely going to focus on confidentiality, security and privacy concerns with generative AI systems, but other issues could arise, as well. Companies operating in key regulated industries appear to be anticipating regulatory scrutiny, which is why adoption of the newest generative AI systems will likely be slow and deliberate. However, in some cases, AI systems are being outright banned.

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AI systems seem like an exciting, effective new tool. But, as we have seen with Google’s recent struggles with accuracy, and Microsoft’s trouble with sentient, unhinged chat bots, not all of the kinks have been worked out with these tools.

In our last post, we discussed the legal risks, and related contractual mitigants for entering into agreements with AI vendors, but perhaps a more pressing question is whether one can trust AI systems in the first place.

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In our previous post, we provided an introduction to the budding new technology of generative AI, or AI systems. As with the implementation of any new technology, widespread understanding of the risks generally lags behind the speed of the technology itself. When the technology industry began its push “to the cloud,” many customers were concerned about certain issues, including but not limited to giving up control of data, security risks, and performance issues. In response, sophisticated customers carefully addressed these types of issues in their contracts with cloud service providers.

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Though the use of artificial intelligence has grown steadily during the past decade, the recent release of OpenAI’s generative AI system, ChatGPT, has led to a precipitous increase in attention and publicity accompanying the rise of powerful generative AI systems.

With these generative AI systems come mounting issues and concerns around the use of AI systems by technology service providers.

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