Assessing the legal environment for AI: essential for all companies, no exceptions

The pervasive influence of artificial intelligence (AI) on information processing standards and work processes necessitates swift adaptation by businesses. In addition to implementing change management strategies and effective communication, a comprehensive assessment of the legal environment surrounding AI technology is imperative. This assessment holds significance not only for AI developers, providers, and distributors, but also for users and buyers of the technology.

AI developers and providers must ensure that their AI products comply with applicable laws and regulations on data protection, intellectual property, consumer rights, and liability. They also need legal guidance to address potential ethical and social implications, including bias, discrimination, transparency, and accountability. By conducting a thorough assessment of the legal environment, AI developers can confidently navigate the complex and evolving framework, thereby avoiding compliance gaps and disputes. Seeking timely advice from technology lawyers aids in fostering sustainable relationships with product development professionals and appropriately formalizing third-party contributions to AI product development.

Legal assistance is equally vital for distributors of AI products, as they bear responsibility for the products they distribute. Moreover, distributors face specific requirements that are expected to increase in the future. Lawyers provide invaluable support in contract law matters, facilitating the drafting of essential documents such as non-disclosure agreements (NDAs), confidentiality agreements, product distribution agreements, and standard terms of service.

For companies that do not develop or distribute AI-based products and services, but utilize or intend to purchase them, it is essential to understand their rights and obligations in this context. Factors such as existing contracts, licenses, warranties, and standard terms of service play an important role. Proactively ensuring legal protection becomes essential to effectively manage risks associated with AI product failures, errors, or violations while safeguarding business interests.  

Businesses in all industries can face a wide range of AI-related issues or conflicts. These can include concerns surrounding data ownership, data usage limitations, uncertainties regarding intellectual property, protection of confidential information, and the utilization of personal data. Effective dispute resolution, identification of liability and understanding of indemnification obligations are integral aspects of addressing such matters. To achieve this, it is essential to have a good understanding of the nature and implications of the use of specific AI tools, and to take into account existing and emerging legislation on technology and data management. The impact of AI tools on employees' roles and potential redundancies should be assessed, considering relevant employment law requirements.

Even if a company is not directly involved in the development or utilizing AI products, its employees may independently use AI tools such as ChatGPT to perform work-related tasks. These may include requesting tools for information analysis or summarization and seeking consultation.  In such cases, it is advisable to train staff to ensure the safe and appropriate use of popular tools. Employee training and guidance should cover aspects such as information confidentiality, protection of intellectual property, privacy of personal data, and data security.  

At Fondia, we specialize in assisting companies in understanding and managing legal risks associated with AI. Contact us to learn about the AI legal landscape and receive effective legal advice and solutions tailored to your needs.