The legal issues presented by generative AI

The legal issues accompanying generative AI have several implications for companies that develop AI programs and those that use it. While it’s not clear how legal threats will affect the development of generative AI, they could force creators of AI systems to think more carefully about what data sets they train their models on. More likely, legal issues could slow down the adoption of the technology as companies assess the risks.

Developers might need to get smarter and more creative about where they get training data for AI models which will also help them avoid delays caused by a lack of clarity around what’s permissible.

Companies beginning to integrate AI into their operations have several options to reduce legal risk. First, companies should be active in their due diligence, taking actions such as monitoring AI systems and getting adequate assurances from service and data providers. Contracts with service and data providers should include indemnification — a mechanism for ensuring that if a company uses a product or technology under an agreement, the company is protected from legal liability.

Source: Sloan School





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