Artificial Intelligence

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The NY State Bar Association (NYSBA) Task Force on Artificial Intelligence has issued a nearly 80 page report (Report) and recommendations on the legal, social and ethical impact of artificial intelligence (AI) and generative AI on the legal profession. This detailed Report also reviews AI-based software, generative AI technology and other machine learning tools that may enhance the profession, but which also pose risks for individual attorneys’ understanding of new, unfamiliar technology, as well as courts’ concerns about the integrity of the judicial process. It also makes recommendations for NYSBA adoption, including proposed guidelines for responsible AI use. This Report is perhaps the most comprehensive report to date by a state bar association. It is likely this Report will stimulate much discussion.Continue Reading NY State Bar Association Joins Florida and California on AI Ethics Guidance – Suggests Some Surprising Implications

The AI landscape is rapidly changing. To keep you up to date on the fast breaking legal updates in the AI space, we will be providing weekly updates summarizing significant news and legal developments, ranging from AI lawsuits and enforcement actions to legislation and regulations. Below are some highlights of key developments and articles you can view to learn more.Continue Reading AI Legal Updates

The SEC has charged and settled claims with two Investment advisers with making false and misleading statements about their use of artificial intelligence (AI). The SEC found that Delphia (USA) Inc. and Global Predictions Inc. marketed to their clients and prospective clients that they were using AI in certain ways when, in fact, they were not. SEC chair Gensler noted that when new technologies come along, they create buzz from investors and false claims by those purporting to use those new technologies. He admonished investment advisers to not mislead the public by saying they are using an AI model when they are not and that such “AI washing” hurts investors. The companies paid $400,000 in civil penalties.Continue Reading SEC Cracks Down on Over-Hyped AI Claims – Director Says This is Just the Beginning

On January 26, 2024, the Federal Risk and Authorization Management Program (“FedRAMP”) published a draft Emerging Technology Prioritization Framework developed in response to President Biden’s Executive Order 14110 on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (previously analyzed by our colleague here and discussed in a flash briefing available here). The Executive Order charged FedRAMP with developing a framework to prioritize Emerging Technologies in the FedRAMP authorization process, starting with generative AI.Continue Reading Emerging AI Landscape: FedRAMP Publishes Draft Emerging Technology Prioritization Framework in Response to Executive Order on Artificial Intelligence

Aiming to curb the use of AI, voice cloning technology in robocall scams, on February 8, 2024, the Federal Communications Commission (FCC) issued a unanimous declaratory ruling prohibiting unsolicited robocalls with voices generated by AI. With its ruling, which took effect immediately, the FCC made clear that the federal Telephone Consumer Protection Act (TCPA) – meant to curb junk phone calls – also outlaws unsolicited AI-generated robocalls.Continue Reading Battling the Robocall Onslaught: The FCC’s Strategic Measures Against AI-Driven Scams

The launch of ChatGPT 3.5 in November 2022 set up 2023 as a year for rapid growth and early adoption of this transformative technology. It reached 100 million users within 2 months of launch – setting a record for the fastest growing user base of a technology tool. As of November 2023, the platform boasted an estimated 100 million weekly active users and roughly 1.7 billion users. Notably, ChatGPT is just one of the growing number of generative AI tools on the market. The pace of technical development and user adoption is unprecedented.Continue Reading Artificial Intelligence Legal Issues – 2023 Year in Review and Areas to Watch in 2024

Recent developments in Artificial Intelligence (AI) have been transforming several sectors, and the healthcare industry is no exception. In the second episode of Sheppard Mullin’s Health-e Law Podcast, Jim Gatto, a partner at Sheppard Mullin and the co-leader of its AI Team, explores the significant implications and challenges of incorporating AI into the healthcare industry with Sheppard Mullin’s Digital Health Team co-chairs, Sara Shanti and Phil Kim.Continue Reading AI as an Aid – Emerging Uses in Healthcare: A Discussion with Jim Gatto

On November 21, 2023, the Federal Trade Commission (“the FTC”) announced its approval of an omnibus resolution authorizing the use of compulsory process for nonpublic investigations concerning products or services that use artificial intelligence (“AI”). Compulsory process refers to information or document requests, such as subpoenas or civil investigative demands, for which compliance is enforceable by courts. Recipients who fail to comply with compulsory process may face contempt charges.Continue Reading AI Enforcement Update: FTC Authorizes Compulsory Process for AI Investigations