Artificial Intelligence

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As of July 23, 2025, the White House has declared AI not just a strategic priority, but an industrial, informational, and cultural revolution the U.S. intends to lead.[1] The official Action Plan organizes this imperative around three mutually reinforcing pillars: (1) Accelerating AI Innovation, (2) Building American AI Infrastructure, and (3) Leading International AI Diplomacy and Security.[2] Here, we spotlight how emerging AI policy may reshape compliance, funding access, content authentication, and licensing deals around the globe.Continue Reading The 2025 AI Action Plan: Key Business and Legal Implications

The use of AI recording tools has become prevalent. Companies’ policies addressing the legal issues with these tools is not yet as prevalent. If your company’s AI policy does not address these issues, it needs to be updated. A recently filed class action stems from one fact scenario where legal issues may arise. It is not the first suit against AI recording and it will not be the last. The lawsuit claims violation of the Federal Wiretap Act. 18 U.S.C. § 2510 et seq based on use of a third party service that records and perform AI analysis on calls between a dental company and its patients. Details of this lawsuit are provided below. However, it is important to understand that if your company or your employees use AI recording tools or notetakers, you need to ensure that your AI policy covers all of the necessary issues. These issues can include at least: i) managing and documenting notice and consent; ii) dealing with nonconsenting parties participating in a call being recorded; iii) inaccuracies of AI generated transcripts and summaries; iv) AI generated sentiment analysis/emotion detection; v) confidentiality and privilege issues; vi) retention and/or deletion of recordings; vii) vendor diligence on these tools and approval process for specific tools; and viii) knowing the technical features of some tools that can help mitigate risk and others that can create more risk.Continue Reading “Listen Up” if Your AI Policy Does Not Cover AI Recording Issues – Another Class Action Lawsuit Filed Over Third Party AI Recording Service

On June 4, 2025, Reddit, Inc. (“Reddit”) filed suit against Anthropic, PBC (“Anthropic”) in the Superior Court of California, alleging that Anthropic scraped and commercially exploited Reddit user data—including deleted posts—without consent or compensation.[1] Unlike recent enforcement efforts that have centered on establishing copyright infringement liability, Reddit’s complaint brings five causes of action—breach of contract, unjust enrichment, trespass to chattels, tortious interference, and unfair competition—reflecting a strategic choice to deploy contractual and privacy-based claims to address Anthropic’s allegedly unauthorized scraping of Reddit data.[2]Continue Reading Beyond Copyright: Reddit’s Lawsuit Against Anthropic

M&A in the AI sector is redefining deal risk, especially when sensitive data is involved. As AI companies power breakthroughs in biotech, healthcare, defense, and critical infrastructure, the stakes for companies acquiring businesses handling proprietary data, biotech research, medical records, trade secrets, critical technology or government intelligence have never been higher. In an era where a single data breach or compliance failure can derail innovation and shatter market trust, due diligence has evolved from a legal checkpoint to a mission-critical strategy for safeguarding value in a rapidly disrupting landscape.Continue Reading Guarding Against the Unknown: M&A Due Diligence of AI Companies in Data-Sensitive Sectors

For many reasons, existing open source licenses are not a good fit for AI. Simply put, AI involves more than just software and most open source licenses are designed primarily for software. Much work has been done by many groups to assess the open source license requirements for AI. For example, the OSI has published its version of an AI open source definition – The Open Source AI Definition – 1.0. Recently, the Linux Foundation published a draft of the Open Model Definition and Weight (OpenMDW) License.Continue Reading AI Drives Need for New Open Source Licenses – Linux Publishes the OpenMDW License

We previously reported on the groundbreaking AI Fair Use ruling in the Thomson Reuters Ross Intelligence case, where the court found that based on the facts of this case fair use was not a defense. Ross Intelligence moved, pursuant to 28 U.S.C. § 1292(b), for certification of the Court’s Order, for interlocutory appeal and for a stay pending that appeal. The Court has now granted that request.Continue Reading Court Grants Interlocutory Appeal on AI Fair Use Issue

The integration of artificial intelligence (AI) tools in healthcare is revolutionizing the industry, bringing efficiencies to the practice of medicine and benefits to patients. However, the negotiation of third-party AI tools requires a nuanced understanding of the tool’s application, implementation, risk and the contractual pressure points. Before entering the negotiation room, consider the following key insights:Continue Reading Key Considerations Before Negotiating Healthcare AI Vendor Contracts

The power of large language models (LLMs) that enables generative AI derives from vast quantities of data. Much of this data comes from scraping all forms of content from the internet. Despite the benefits, this practice raises numerous legal issues, some of which implicate IP issues. Dozens of pending lawsuits in the US alone include claims involving IP issues with data scraping. The recent OECD report titled “Intellectual Property Issues in AI Trained on Scraped Data” (Report) explores the intricate relationship between AI and IP rights, particularly focusing on data scraping practices used in AI training. It aims to provide policymakers with insights into the legal challenges posed by data scraping and potential policy approaches to address these issues. The following is an overview of the Report.Continue Reading OECD Report on Data Scraping and AI – What Companies Can Do Now as Policymakers Consider the Issues

While AI has many people uptight, Aescape has developed technology to help you relax – AI robotic massage. Aescape touts that it combines the timeless art of massage with robotics and artificial intelligence to deliver an exceptional massage experience every time. The “Aertable” (i.e., the massage table) has bolsters, headrests, and armrests that are all adjustable to provide a customized fit during each session. It also has continuous feedback which allows for real-time adjustments to optimize comfort. The “Aerscan” system captures 1.2 million data points, precisely mapping your body’s muscle structure to create a unique blueprint for a highly personalized massage experience. “Aerpoints” replicate the seven touch techniques of a skilled therapist, simulating the knuckle, thumb, cupped hand, blade of hand, palm, forearm, and elbow. The “Aerview” provides personal control so you can adjust the pressure, manage the music, or customize the display to create a session tailored to your preferences, needs and mood. The company has developed “Aerwear” a high-compression performance fabric that enhances body detection for the system and allows Aerpoints to move smoothly over your body. Wearing it is mandatory during the massage. The tables are equipped with advanced safety features, including force sensors and pause and emergency stop features to prevent or abate issues if things go wrong. Aescape is a classic example of an application of AI and robotics that will interact with humans. We will see many more such applications from this point forward. While Aescape seems to have anticipated some of the potential problems that can arise, any AI robotic application that interacts with humans has the potential for a variety of legal issues. The following are some of the general legal issues that may be relevant to AI robotic applications that interact with humans. But the actual issues will vary by application.Continue Reading If You Are Uptight About AI, This May Relax You

As artificial intelligence (AI) continues to transform the business world, acquirors need to prepare for a deep dive when evaluating companies that use AI to enable their businesses or create proprietary AI. Key considerations for buyers targeting AI-driven companies include understanding how AI is being used, assessing the risks associated with AI creation and use, being mindful of protecting proprietary AI technology, ensuring cybersecurity and data privacy, and complying with the regulatory landscape.Continue Reading M&A Playbook for Acquiring AI-Powered Companies