Lawyers, traditionally known to be very conservative in using technology, made headlines recently when a lawyer was caught using ChatGPT to prepare a filing but ChatGPT cited fake cases https://www.forbes.com/sites/mollybohannon/2023/06/08/lawyer-used-chatgpt-in-court-and-cited-fake-cases-a-judge-is-considering-sanctions/?sh=70bac8b7c7f3 As businesses increasingly rely on artificial intelligence (AI) to enhance their service offerings, they face a host of legal challenges unique to this rapidly evolving technology. While AI has the potential to revolutionize industries, its deployment comes with legal implications that demand careful consideration. This article explores four significant legal issues faced by businesses that provide their services using AI, accompanied by relevant examples.
1. Data Privacy and Protection:
One of the primary concerns in AI-driven services is the collection, storage, and processing of vast amounts of data. Businesses must ensure compliance with data privacy regulations, such as the European Union’s General Data Protection Regulation (GDPR) and in Malaysia, the Personal Data Protection Act (PDPA). Failure to do so can result in severe penalties and reputational damage. For example, a healthcare AI company that mishandles sensitive patient data, violating privacy regulations, could face significant legal consequences.
2. Intellectual Property Rights:
AI systems often rely on training data, proprietary algorithms, and models, raising complex issues regarding intellectual property (IP) rights. Businesses must address questions surrounding ownership, licensing, and protection of AI-generated outputs. For instance, if an AI-based content creation service develops an innovative algorithm capable of producing original written works, it becomes crucial to establish who owns the copyright to those works and how they should be protected.
3. Liability and Accountability:
The question of accountability arises when AI systems make decisions or perform actions that have legal implications. Determining liability can be challenging, especially in cases where AI autonomously makes decisions without human intervention. For example, if an autonomous delivery drone malfunctions and causes property damage or injures someone, it becomes crucial to determine who is legally responsible—the manufacturer, the operator, or both.
Additionally, we have seen the rise of AI videos using deepfake https://www.businessinsider.com/guides/tech/what-is-deepfake#:~:text=Deepfakes%20use%20AI%20to%20replace,or%20investigating%20who%20posted%20it. of famous people doing and saying things; AI photos of real persons promoting products or services or in compromising situations. What can these people do in these situations? Those videos and photos are not them; but they look so much alike that it will create confusion.
4. Laws & Regulations:
Laws and regulations have always been slow to catch up with technology. By the time a new law is passed to regulate a certain technology, that technology would probably be obsolete and a newer technology may replace it that requires a new set of laws to be passed. Furthermore, technology being borderless, it also creates issues such as jurisdiction much like some issues relating to cryptocurrency https://www.imf.org/en/Publications/fandd/issues/2022/09/Regulating-crypto-Narain-Moretti
Conclusion:
AI is here to stay and will evolve further but as businesses increasingly embrace AI-driven services, they must confront legal issues specific to this technology. Navigating data privacy regulations, protecting intellectual property, and establishing liability and accountability are critical for mitigating legal risks. Businesses must engage legal experts to ensure compliance, develop comprehensive data protection strategies, and create transparent frameworks for AI decision-making processes. By proactively addressing these challenges, businesses can harness the power of AI while maintaining legal compliance and protecting their interests.
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