AI tools such as Chat GPT and Otter are becoming common programs that employees use to help streamline business tasks. Otter, for example, is an AI Meeting Assistant that automatically transcribes and summarizes meetings in real time, records audio, captures slides, extracts action items, and generates content such as e-mails and status updates. While tools like Otter may provide quick answers or help synthesize a large volume of information, employers and employees alike should be mindful of the types of information fed to (and possibly stored in) AI programs. The use of an AI tool to, for example, record a meeting that discusses company confidential information, can give rise to claims of trade secret misappropriation.Continue Reading Mind Your Audience: Disclosure of Confidential Information to AI Programs Can Give Rise to Trade Secret Misappropriation Claims

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

In a prior article Training AI Models – Just Because It’s “Your” Data Doesn’t Mean You Can Use It, we addressed how many companies are sitting on a trove of customer data and are realizing that this data can be valuable to train AI models. We noted, however, that the use of customer data in a manner that exceeds or otherwise is not permitted by the privacy policy in effect at the time the data was collected could be problematic. As companies think through these issues, some have (or will) update their Terms of Service (TOS) and/or privacy policy to address this. Before companies do this, it is critical to make sure they do not jump out of the frying pan and into the fire.Continue Reading FTC Warns About Changing Terms of Service or Privacy Policy to Train AI on Previously Collected Data

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 Florida State Bar recently adopted an advisory opinion meant to provide attorneys with guidance on how to use generative artificial intelligence (“GenAI”) without running afoul of ethics rules. In doing so, Florida becomes one of the first state bars to issue formal guidance on this topic—second only to California.Continue Reading Florida Joins California in Adopting Ethical Guidelines for Attorney’s Use of Generative AI

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