AI (Artificial Intelligence) in Business: A Legal Gut Check

Erin Beckner Conlin, Esq., ebeckner@tuckerlaw.com, (412) 594-5604

The topic of AI is a venerable buzzworthy buzzword for businesses these days. Need a crash course? Forbes recently profiled the “Top Five Real Risks of AI to Your Business”.

If it Could Happen to …Big Names in Business Outlaw AI Based Tools

The Forbes article notes that some big companies have banned AI tools like ChatGPT including Apple, JPMorgan Chase, Citigroup, Deutsche Bank, Wells Fargo, and Verizon. As a cautionary tale, it outlines that Zillow notably incurred a $300 million loss when it attempted to use an AI-based algorithm to price homes that fell short. All food for thought. Have you stopped to think about how the emergence of AI could impact your business or what your company could do to get out in front of AI associated risks and rewards? 

General Counsels Rank AI as the Biggest “Surprise Issue” of 2024

Law 360 recently reported that a survey of General Counsels ranked AI concerns as the biggest surprise issue of 2024. The Most Surprising Aspect For GCs So Far In 2024? AI – Law360 Pulse. We predict more to come in 2025.

Now is a good time to start thinking about the impact of AI on your business. This blog post presents some high-level considerations for businesses thinking about the impact of AI on their operational footprint and some pragmatic considerations for a compliance-focused game plan.

AI 101 – Compliance Considerations for In-House Lawyers and Businesses Interested a Preventative AI  Checklist

Even if you had to Google “AI” at the start of reading this article, there are some high-level considerations that can assist with evaluating how the emergence of AI could impact your business. Give some thought to the following:

• Employment – Do you know if your employees are using AI to cut corners? Have you thought about an AI-related policy in your workplace or at least a handbook update? Have you considered training your employees on this topic?

• Contracts – Retroactively, do you know what’s in your existing agreements and how the use of AI might impact your business relationships and obligations? Prospectively, think about whether to include AI language in your standard business agreements. Talk to counsel about risk shifting, indemnification, and some carve outs for your standard terms and conditions.

• Litigation – Evaluate your risk tolerance and profile. Do you know if you have insurance to cover AI-related slips. Who is your first phone call if AI goes left?

• IP – Heard of a deep fake? What about a “hallucination?” Learn the lingo and think about how AI missteps create ownership, data privacy, security, and ethical considerations for businesses.

• Strategic /Brand-Based Cultural – Is your organization ready for this? Have you thought about customer-facing, strategic growth, and reputational risks?

• Regulatory – What rules apply to your industry? Know the rules of engagement in this fast-changing regulatory landscape.

Need Help?

Erin Beckner Conlin is Tucker Arensberg’s Chief Compliance Officer and a Shareholder in the Litigation Group with twenty years of experience. She oversees the firm’s Comprehensive Compliance Program. Contact Erin at (412) 594-5604 or at ebeckner@tuckerlaw.com to put together a multidisciplinary risk assessment of your firm’s readiness to integrate AI into your operational toolkit