News/Law
OpenAI’s conversion to a for-profit entity would raise big questions about its future
OpenAI's Nonprofit Dilemma: OpenAI, the creator of ChatGPT, faces potential challenges stemming from its nonprofit origins as its valuation has skyrocketed to $157 billion, prompting considerations of a corporate restructure. OpenAI's current structure consists of a nonprofit organization overseeing for-profit subsidiaries, with a mission to develop artificial intelligence for the benefit of humanity. CEO Sam Altman has confirmed that the company is exploring the possibility of restructuring, potentially transitioning to a public benefit corporation. If the nonprofit loses control of its subsidiaries, it may be required to pay for assets that originally belonged to the nonprofit entity. Key Considerations for...
read Oct 15, 2024Defense attorneys challenge AI-powered crime-fighting tool
The Rise of Controversial AI-Powered Crime-Fighting Tool: Cybercheck, an artificial intelligence system developed by Canadian company Global Intelligence, claims to geolocate individuals in real-time or the past using only open-source data and algorithms, raising significant concerns about its accuracy and ethical implications. Widespread adoption and bold claims: Cybercheck has gained traction among law enforcement agencies, with over 345 departments in the United States utilizing the tool for approximately 24,000 searches since 2017. Adam Mosher, the founder of Global Intelligence, asserts that Cybercheck operates as a fully automated system requiring no human intervention. The company markets Cybercheck as a powerful investigative...
read Oct 14, 2024AI-generated testimony exposed in courtroom drama
AI in the Courtroom: A Cautionary Tale: A New York judge's recent decision highlights the potential pitfalls of using AI-generated content in legal proceedings, raising important questions about the role of technology in expert testimony. The case at hand: Judge Jonathan Schopf encountered a troubling situation during a real estate dispute involving a $485,000 rental property in the Bahamas that was part of a trust. The expert witness, Charles Ranson, admitted to using Microsoft's Copilot chatbot to estimate damages, despite lacking relevant real estate expertise. Ranson was unable to recall the specific prompts he used or the sources of information...
read Oct 14, 2024California’s new AI laws — here’s what you should know
California's AI legislation: A landmark moment in tech regulation: California has enacted a comprehensive set of 18 AI-related laws, marking a significant step in regulating artificial intelligence across various sectors and applications. Key areas of regulation: The new laws address multiple aspects of AI development, deployment, and use, reflecting the technology's broad impact on society and the economy. AI development transparency: AB-2013 mandates transparency in AI training data, requiring developers to disclose information about the data used to train AI systems. Risk assessment for government agencies: SB-896 introduces new requirements for government agencies to evaluate AI systems' risks in catastrophic...
read Oct 14, 2024AI voice cloning is raising hairy legal and ethical questions for businesses
AI-generated influencer endorsements emerge: A gadget manufacturer has utilized artificial intelligence to create a voice resembling that of popular tech reviewer Marques Brownlee in an Instagram promotion, raising concerns about the ethical implications and potential misuse of AI-generated content in advertising. The AI-generated voice, while not perfect, was convincing enough to potentially mislead viewers into believing it was a genuine endorsement from Brownlee. This incident highlights the growing capability of AI to mimic human voices and its potential use in creating fake celebrity endorsements. The company behind the advertisement has not yet responded to inquiries about the use of the...
read Oct 11, 2024What the Justice Department thinks about AI right now
Interagency collaboration on AI equity: The Justice Department's Civil Rights Division convened a meeting of federal agency representatives to coordinate efforts on advancing equity in artificial intelligence and protecting civil rights. The meeting marked the fourth such gathering, coming nearly a year after President Biden's Executive Order on Safe, Secure, and Trustworthy AI Development and Use. The Civil Rights Division is tasked with coordinating federal agencies to prevent and address potential discrimination and harm from AI while preserving its potential benefits. Key developments and initiatives: Several agencies shared recent accomplishments and ongoing efforts to safeguard civil rights in the context...
read Oct 11, 2024How this law firm took a strategic approach to AI implementation
AI adoption in the legal sector: Swedish law firm Setterwalls has taken a strategic approach to incorporating artificial intelligence (AI) tools into their practice, recognizing the potential benefits and challenges of this emerging technology. Setterwalls initiated a pilot project to test three AI tools for lawyers, aiming to assess their practical applications and potential impact on legal work. The pilot revealed significant adoption rates, with 80% of the test group using generative AI more than once a week and 30% utilizing it multiple times daily. Following the successful pilot, Setterwalls expanded AI access to all 200 lawyers and provided AI...
read Oct 11, 2024How regulated industries are thinking about AI implementation
The rise of generative AI in regulated sectors: Professionals in highly regulated industries are showing increasing interest in generative AI (GenAI) technology, recognizing its potential to revolutionize their work while remaining cautious about implementation. A survey by Thomson Reuters Institute revealed that nearly half of respondents in legal, tax and accounting, risk and fraud, and government sectors are "hopeful" or "excited" about implementing GenAI. Despite this optimism, widespread adoption in these sectors remains limited due to concerns about safety, security, and responsible use. The key issue holding back adoption is trust, with organizations needing assurance that GenAI can enhance their...
read Oct 9, 2024How CIOs can manage the hidden legal risks of AI implementation
The AI regulatory landscape: A complex and evolving terrain: Enterprise CIOs face a challenging environment as they navigate the legal and ethical considerations surrounding artificial intelligence implementation. The rapid advancement of AI technology has outpaced regulatory frameworks, creating a complex landscape for businesses to navigate. While Europe has taken steps towards comprehensive AI regulation with the EU Artificial Intelligence Act, the United States lacks federal-level oversight, relying instead on a patchwork of state laws. Recent legal actions against major companies like Patagonia and Peloton highlight the growing scrutiny of AI applications, particularly in areas of consent and data sharing. Key...
read Oct 7, 2024California’s AI legislation continues to advance despite AI safety bill veto
California's AI regulation leadership: California continues to lead the way in state-level artificial intelligence regulation, building on its history of consumer data protection with new laws addressing AI systems beyond personal data use. The California Consumer Privacy Act (CCPA) has already established the state as a leader in data protection, often mentioned alongside the European Union's General Data Protection Regulation (GDPR). Recent legislative efforts in California aim to address broader AI and machine learning system regulations, reflecting the state's role as the home of Silicon Valley and the largest state economy in the U.S. SB 1047 veto and controversy: Governor...
read Oct 4, 2024AI symposium reveals key insights for criminal justice reform
AI symposium highlights DOJ's cybercrime strategy: The Criminal Division of the Department of Justice hosted a symposium on Artificial Intelligence, unveiling a new Strategic Approach to Countering Cybercrime and discussing the implications of AI in law enforcement. Key announcements and initiatives: Principal Deputy Assistant Attorney General Nicole M. Argentieri delivered a keynote speech outlining the promises and perils of AI in the justice system. The Criminal Division introduced a new Strategic Approach to Countering Cybercrime, focusing on disrupting criminal activity, developing relevant laws and policies, and promoting cybersecurity. The DOJ expressed support for the UN Convention on Cybercrime to enhance...
read Oct 2, 20245 AI legal challenges every business must address
AI's legal landscape: As artificial intelligence continues to revolutionize industries, companies face a growing array of legal challenges and considerations when implementing AI strategies. The Copyright Alliance reports over two dozen AI-related lawsuits in the US alone, highlighting the legal complexities surrounding AI adoption. In September, the Federal Trade Commission took enforcement action against companies for making deceptive claims and promising false business results using AI hype and technology. Key legal factors for AI implementation: Business leaders and owners must carefully consider five critical legal aspects before rolling out broad AI strategies across their organizations. Technology evaluation: Assessing compatibility and...
read Oct 1, 2024AI artist fumes as creations spark widespread copying
AI-Generated Art Sparks Copyright Controversy: Jason Allen, who previously won a fine arts competition with an AI-generated image, is embroiled in a legal battle over copyright protection for his work, highlighting the complex intersection of artificial intelligence and intellectual property rights. The background: Allen's image "Théâtre D'opéra Spatial," created using the AI tool Midjourney, won a fine arts competition two years ago but was denied copyright protection by the US Copyright Office. The Copyright Office ruled that the image did not exhibit sufficient human authorship to warrant full copyright protection, allowing Allen to claim credit only for specific portions he...
read Sep 30, 2024AI is fueling an alarming surge in child exploitation cases
AI-generated child exploitation material: A growing crisis: The widespread availability of generative AI technology is fueling a surge in the creation and distribution of sexually explicit images and videos of children, posing significant challenges for law enforcement, schools, and society at large. Scale of the problem: The issue of AI-generated child sexual abuse material (CSAM) is rapidly expanding, affecting a substantial number of minors across the United States and globally. A report by the Center for Democracy and Technology found that 15% of high school students had heard of AI-generated sexually explicit images depicting someone associated with their school. A...
read Sep 30, 2024AI detective investigates real crimes in groundbreaking police test
AI-powered detective system tested by UK police: The Avon and Somerset Police Department in the United Kingdom is experimenting with an AI-powered system called Soze, designed to assist in solving cold cases by rapidly analyzing vast amounts of evidence. Developed in Australia, Soze can process emails, social media accounts, videos, financial statements, and other documents related to criminal investigations. The system reportedly analyzed evidence from 27 complex cases in approximately 30 hours, a task that would have taken human detectives an estimated 81 years to complete. This significant time-saving potential has attracted the attention of law enforcement agencies facing personnel...
read Sep 29, 2024Mark Zuckerberg to testify in AI copyright suit by authors
Meta CEO faces legal challenge over AI copyright infringement: Mark Zuckerberg, CEO of Meta, is set to be deposed in a lawsuit accusing the company of using copyrighted material without permission to train its artificial intelligence technology. A U.S. District Judge rejected Meta's attempt to prevent Zuckerberg's deposition, citing evidence of his direct involvement in the company's AI initiatives. The class action lawsuit, filed by authors including comedian Sarah Silverman, writer Ta-Nehisi Coates, and former Arkansas Gov. Mike Huckabee, alleges that Meta illegally downloaded digital copies of their books for AI training purposes. Prominent attorney David Boies, known for representing...
read Sep 28, 2024How AI startup Veritone is using AI to enhance public safety
Veritone expands Midwest reach through strategic partnership: California-based AI company Veritone has formed a product access agreement with Illinois-based Midwest Public Safety to offer its AI-powered applications for law enforcement and judicial agencies across the Midwest region. The partnership will make Veritone's complete line of AI-powered applications available to Midwest Public Safety's clients and potential customers in the region. Key products highlighted in the deal include Veritone Investigate, a digital evidence management tool, and Veritone Redact, software for video and audio redaction. These products are designed to help law enforcement agencies streamline and better manage critical police tasks. Addressing growing...
read Sep 26, 2024AI legal startup hit with $193,000 FTC fine in tech crackdown
AI company faces legal consequences: DoNotPay, a company claiming to offer the "world's first robot lawyer," has agreed to a $193,000 settlement with the Federal Trade Commission (FTC) for misleading consumers about its AI-powered legal services. The settlement is part of Operation AI Comply, a new FTC initiative aimed at cracking down on companies using AI to deceive or defraud customers. DoNotPay claimed its AI could replace human lawyers and generate valid legal documents, but the FTC found these claims were made without proper testing or evidence. The company allegedly told consumers they could use its AI service to sue...
read Sep 25, 2024FTC cracks down on DoNotPay, other companies for deceptive AI practices
FTC launches crackdown on AI-powered companies: The Federal Trade Commission has initiated "Operation AI Comply," targeting five companies accused of using artificial intelligence deceptively or harmfully. The FTC's action underscores its commitment to ensuring AI-marketed products and services provide real value and don't exploit consumers with false promises. The agency is taking legal and regulatory actions against companies found to be engaging in deceptive practices related to AI. Companies in the crosshairs: Five companies have been targeted by the FTC for alleged misuse of AI technology in their products and services. DoNotPay, which claimed to offer AI-powered legal services, has...
read Sep 19, 2024Opinion: Making SB 1047 a Law is the Best Way to Improve It
The legislative landscape: California Senate Bill 1047, known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, aims to establish groundbreaking regulations for AI technology developers in the state. The bill requires AI companies to integrate safeguards into their "covered models" during development and deployment phases. It empowers the California attorney general to pursue civil actions against parties failing to take "reasonable care" in preventing catastrophic harms or enabling emergency shutdowns. SB 1047 represents a significant step towards regulating the rapidly evolving AI industry, potentially setting a precedent for other states and countries. Industry opposition and concerns:...
read Sep 15, 2024Law Firms Are Becoming More Data-Driven and Proactive in Response to AI Pressures
Shifting landscape of legal services: The legal industry is undergoing significant transformation as law firms face multifaceted challenges and adapt to evolving market dynamics. Traditional law firms are grappling with increased competition from expanding US firms, the disruptive potential of generative AI, changing client expectations, and encroachment from non-traditional players like the Big Four accounting firms. In response to these pressures, law firms are developing specialized "destination practices" to establish dominance in specific legal areas or geographical regions. Many firms are broadening their service offerings beyond pure legal advice, incorporating other disciplines and expertise to provide more comprehensive solutions to...
read Sep 13, 2024In-House Legal Teams See Major Productivity Gains From AI
AI-powered legal innovation: Unilever's in-house legal team is leading the charge in leveraging artificial intelligence to transform corporate legal operations, setting a new standard for efficiency and cost-effectiveness. Unilever has established three "powerhouses" or legal delivery centers in Barcelona, Mexico City, and Bengaluru, employing 85 staff to handle large volumes of legal contracts using advanced technologies, including generative AI. The implementation of AI tools like Microsoft's Copilot and CoCounsel has resulted in significant productivity gains, with lawyers saving an average of 30 minutes per day on tasks such as contract drafting and review. This increased efficiency has allowed Unilever's legal...
read Sep 13, 2024AI Is Empowering Law Firms to Expand Pro Bono Services
AI revolutionizing pro bono legal work: Law firms are leveraging artificial intelligence to enhance their pro bono efforts, enabling them to take on larger projects and increase their impact in providing free legal services. Norton Rose Fulbright utilized AI-assisted e-discovery to efficiently process thousands of documents for the UK government's Covid-19 inquiry, supporting Save the Children's examination of children's rights in policy decisions. Linklaters employed its in-house generative AI chatbot, Laila, to produce draft case summaries for a human trafficking project in Tanzania, accelerating the process and allowing lawyers to focus on specialized legal analysis. Hogan Lovells is collaborating with...
read Sep 13, 2024How AI Is Making Its Mark On The Legal Profession
Generative AI in the legal industry: Two years after the launch of ChatGPT, law firms are moving beyond hype to practical applications of AI technology, focusing on efficiency and cost savings. A report published by Deloitte this summer reveals a gap between client expectations and current benefits from law firms' AI use, with 70% of clients anticipating cost savings and faster turnaround times. Early adopters are concentrating on key themes to integrate AI effectively in legal practice. Data protection challenges: Law firms are grappling with privacy and confidentiality concerns when implementing AI systems, particularly in a global context. Regulations mandating...
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