As is the case with most emerging technologies, the development of artificial intelligence (AI) is rapidly outpacing regulation, which brings with it a variety of important legal considerations. Although stronger regulatory oversight is required, regulation at the federal level has not yet materialized. Natasha Allen, Co-Chair of Artificial Intelligence in the company's Innovative Technologies division, explores the current regulatory issues facing AI startups and what to look for in the future.
Regarding the current regulatory landscape, Natasha points out that it is more like a patchwork quilt than a seamless framework. While states have been quick to address AI-related risks, the federal government has yet to enact definitive legislation. She focused on responsible AI and transparency/accountability, two of her themes that have been consistently repeated in the Biden administration, and highlighted the growing demand for human oversight of AI outputs.
As AI systems become more autonomous, there are concerns about responsibility and accountability for decisions made by AI models. Natasha emphasizes that whether AI is used or not, the same legal principles apply and those responsible will be held to some degree of accountability. She emphasizes the importance of selectively choosing the right inputs and being mindful of the resulting outputs, a practice that will steer your company in the right direction. She cites the National Institute of Standards and Technology (NIST) framework as a valuable resource for assessing AI-related risks.
AI startups should also consider structuring agreements to address issues such as the use of sensitive information and ownership of AI-generated content, to name a few. Natasha points out that many companies are requesting clauses that specifically state when their proprietary information will be used to train LLM models. Businesses need to be aware of these new requirements and spell out in advance how their data will be used in their contracts. As it relates to copyright, companies will need to keep records of content that is generated naturally or with some form of her AI assistance, as well as content that is generated using only AI .
Given the rapid advances in AI and the evolving legal landscape, it is also important for startups to stay up to date with regulatory changes and ensure continued compliance with new requirements. Natasha emphasizes the importance of working closely with your lawyer to understand changes in the law. She also noted that Foley has extensive resources for tracking AI bills passed in various states.
When it comes to specific AI issues, Natasha predicts that in 2024 there will be an increased focus on combating the misuse of deep fake technology to influence elections. He also looks forward to continued efforts by the federal government to establish comprehensive AI regulations as other countries perfect their own AI laws. There is a delicate balance between AI innovation and regulation, and it will be important to ensure that regulatory efforts do not stifle innovation while providing essential guardrails.
Keeping up with new laws in the U.S. and legal developments around the world is key for startups developing this technology and those deploying it.
