Is Your Business Using Generative AI? Then Consider These Legal Issues

Last November, OpenAI released ChatGPT, a generative artificial intelligence (AI) chatbot specifically trained to respond to human input in real-time. The chatbot works by piecing together responses based on a large amount of data which results in a human-like reply. Unlike other types of AI, ChatGPT is generative which means it has the ability to create or “generate” new content. Up until now, search engines like Google have allowed us to search and receive answers. But, generative AI like ChatGPT can write up the answers. This introduces new legal issues about privacy, plagiarism, intellectual property ownership, copyright, threats of cybercrime, fraud, a host of ethical concerns and more.

This June, the Supreme Court will decide in Gonzalez v. Google, whether section 230 of the Communication Decency Act, a U.S. law that protects technology platforms from legal responsibility for content posted by their users, also applies when companies use algorithms to target users with recommendations. With ongoing debates about who actually owns the content, codes and images created and distributed by generative AI, the case also questions whether AI chatbots, like ChatGPT, could qualify for immunity, alongside search engines, from civil claims under Section 230. What SCOTUS decides could influence emerging laws and regulations of generative technologies. If you are interested in using ChatGPT in your business, here are a few tips to keep in mind.

1. To mitigate privacy issues, when using online resources in general, be sure to remove personal identifying information before passing the data through the tool.
2. Remain aware of the evolving regulations and legal opinions on the IP ownership and copyright protection of AI created content, codes or images.
3. Be familiar with whether your geographical location requires you to explain to clients how AI made a decision that affects them.

Technology as well as the laws and regulations that govern it are rapidly changing. Staying up to date on these ongoing issues, debates, and legal opinions is vital in your ongoing business strategy and communication with your clients. Also consider reaching out to an attorney to discuss drafting company policies and employee guidelines regarding the use of generative AI. Acceptable use policies should require company notice and authorization as well as encourage employees to adhere to local, state and federal laws governing data privacy, fair and nondiscriminatory practices, and avoiding IP infringement.

If you are interested in creating an AI policy for your business, contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.