The battle between open source software developers and the leading AI code generators will rage on. Despite the Court dismissing Plaintiffs’ Digital Millennium Copyright Act (DMCA) Section 1202(b) claims with prejudice, it declined to dismiss Plaintiffs’ claims for breach of contract of open source license violations by Defendants. However, the Court also dismissed Plaintiffs’ request for of unjust enrichment and punitive damages.Continue Reading Court Rules in Landmark AI Code Generator Case – DMCA Claims Dismissed but Breach of Contract Claims Remain

On June 24, the OCC, Federal Reserve Board, FDIC, NCUA, CFPB, and FHFA approved a final rule to implement the quality control standards mandated by the Dodd-Frank Act to address the use of artificial intelligence in estimating home values. The Bureau noted that over the years, the real estate and mortgage industry have made use of computer models to estimate a property’s value. As these AI-based models grow in complexity and include more variables, they can produce inaccurate or discriminatory results.Continue Reading Federal Regulators Finalize Rule Enacting Safeguards for AI-Driven Home Valuations

At last week’s America’s Physician Group Spring conference in San Diego, California, our team heard firsthand how physicians are leading efforts to integrate Artificial Intelligence (AI) applications in ambulatory and inpatient settings in major healthcare systems across the nation. Physician and IT leaders described in detail their organizations’ efforts to identify safe, cost-effective, desirable ways to leverage AI to enhance the efficiency and quality of patient care and reduce physicians’ administrative workload. Here, we highlight key approaches that have generated early success for various health systems and physician groups, as well as key pitfalls that participants looking to adopt these technologies need to account for in their planning.Continue Reading How Physicians are Pioneering Use of AI Applications in Ambulatory and Inpatient Care

If your organization has not updated its policies to comply with Utah’s Artificial Intelligence Policy Act (the “Act”), now is the time. As we noted in a prior blog post, this law took effect on May 1st. While it imposes certain AI-related disclosure obligations on businesses and individuals as a whole, the obligations for regulated occupations (which include those licensed by the Utah Division of Professional Licensing, such as clinical services provided by a licensed healthcare provider, including a physician or nurse), are stricter.Continue Reading Utah Providers – Are You Complying with the AI Policy Act?

The number of bar associations that have issued AI ethics guidance continues to grow, with NJ being the most recent. In its May 2024 report (Report), the NJ Task Force on Artificial Intelligence and the Law made a number of recommendations and findings as detailed below. With this Report, NJ joins the list of other bar associations that have issued AI ethics guidance, including Florida, California, New York, DC as well as the US Patent and Trademark Office. The Report notes that the practice of law is “poised for substantial transformation due to AI,” adding that while the full extent of this transformation remains to be seen, attorneys must keep abreast of and adapt to evolving technological landscapes and embrace opportunities for innovation and specialization in emerging AI-related legal domains.Continue Reading NJ Bar Association Warns the Practice of Law Is Poised for Substantial Transformation Due To AI

By now, most lawyers have heard of judges sanctioning lawyers for misuse of generative AI, typically for not fact checking the outputs. Other judges have issued local rules governing use of or prohibiting AI. These actions have become prevalent. What has not been prevalent is judges encouraging the possible use of AI in interpreting contracts. Perhaps that will change because of a very thoughtful concurring opinion in an appeal to the 11th Circuit Court of Appeals in insurance coverage dispute matter. In that opinion, Judge Newsom penned a 31-page concurrence which focused on whether and how AI-powered large language models should be “considered” to inform the interpretive analysis used in determining the “ordinary meaning” of contract terms.Continue Reading Appellate Judge Proposes Possible Use of GenAI for Contract Interpretation – Recognizes That AI Hallucinates but Flesh-And-Blood Lawyers Do Too!

Plaintiff’s attorneys have filed a wave of lawsuits against various AI tools under a variety of legal theories. Most have had no success so far. Many of the asserted claims have been dismissed for lack of sufficiently pleaded facts to state a claim or for being legally untenable claims. Some of these dismissals have been without prejudice, meaning the plaintiffs get another chance to properly plead a viable claim. In one of the most recent decisions, claims in a nearly 200 page amended complaint were dismissed without prejudice. In a terse decision, the Court excoriated Plaintiff’s rambling complaint’s unnecessary length and distracting allegations, which according to the Court made “it nearly impossible to determine the adequacy of the plaintiffs’ legal claims.” The Court called out rhetoric and policy grievances that are not suitable for resolution by federal courts, including comparing AI’s risks to humanity to the risks posed by the development of nuclear weapons.Continue Reading Lawsuits Against Web Scraping to Train AI

We recently posted about the Jobiak case which raises the interesting question of whether scraping an AI-generated database of job listings constitutes copyright infringement (among other claims). Plaintiff has submitted its opposition, in which it raises the substantive arguments to the copyright claim set forth below.Continue Reading Jobiak’s Opposition to Motion to Dismiss Copyright Infringement Claims on AI-Created Database

A pending lawsuit raises an interesting copyright infringement question – does scraping an AI-generated database of job listings constitute copyright infringement?

In Jobiak v. Botmakers, Jobiak is an AI-based recruitment platform that offers a service for quickly and directly publishing job postings online and leverages machine learning technology to optimize third party job descriptions in real-time and generate an automated database for its job postings. Jobiak alleges copyright infringement (among other claims) because Botmakers scraped Jobiak’s proprietary database and subsequently incorporated its contents directly into its own job listings.Continue Reading Court to Decide Whether AI-scraped Job Database Is Subject to Copyright Protection and Is Infringed?

Is your M&A target a manufacturing company with automated production, a consumer products business with online sales and marketing or an education company that creates content for students? The increasing use and development of artificial intelligence (“AI”) systems and products, particularly generative AI, has created risks for businesses using such tools. AI plays a role in many industries and businesses whose products and services are not themselves AI. In the context of a M&A transaction, it is important to identify and allocate responsibility for these risks. Risks of AI may include: infringement (including through use of training data as well as outputs), confidentiality, IP ownership and protection (including limits on protection of IP generated by AI), regulatory (e.g., privacy, recent AI related legislation), and other risks arising from use such as indemnity obligations or managing contractor use of AI.Continue Reading M&A Transactions: Drafting AI Representations and Warranties for Non-AI Companies