Lawyers win in race to generative AI without adequate laws

Courts and regulators can’t keep up with the speed at which tech companies are building generative AI into products while promising efficiencies and productivity gains not seen since the introduction of the personal computer and the internet.

Adobe, IBM and Microsoft are examples of companies trying to comfort jittery customers with indemnity clauses that would protect them from lawsuits stemming from the output of their generative AI systems.

However, experts believe that indemnities offer limited protections to customers and are of low risk to providers.

There are steps companies can take to reduce legal risks posed by generative AI:

  • Establish guidelines that employees must follow when using generative AI to avoid violating data privacy or confidentiality agreements.
  • Appoint people responsible for vetting all AI-generated outputs for accuracy and bias before using them in business operations.
  • Closely examine indemnities to determine how to operate under their limitations.
  • Avoiding LLMs trained on public data by training in-house LLMs on only private data to generate output solely based on corporate information.







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