In-House Counsel

Ethics And AI For Corporate Counsel

Corporate counsels should take a proactive approach to understand the legal risks associated with AI.

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As artificial intelligence continues to develop and evolve, businesses are becoming more and more aware of the potential implications of this transformative technology. The spread of AI is raising various complex legal questions — from data privacy concerns to impact on antitrust law — that corporate counsel must be prepared to address.

Data Privacy And Cybersecurity

Businesses need to be aware that AI systems can rapidly process immense amounts of data, leading to potential data privacy and cybersecurity issues. Since these systems can quickly identify patterns in user behavior and gain insights into confidential information, businesses must be mindful of the data they are collecting and how it is being used. Any unauthorized access or use of this data could constitute a data breach or violate applicable privacy regulations.

In addition, businesses must also recognize that AI systems can be subject to bias or discrimination. For example, if an AI system is trained on biased data, it may produce inaccurate results by treating certain groups of people differently. Businesses should ensure that their AI systems are tested for potential bias to avoid discrimination-related legal issues.

Antitrust And Contract Law

When it comes to antitrust law, businesses need to be aware that specific AI algorithms may be considered anti-competitive if used to manipulate pricing or limit competition in a specific market. Businesses should consult with their legal counsel before deploying any AI systems that may have the potential to be anti-competitive.

In terms of contract law, all contracts involving AI systems must be reviewed and updated regularly to keep up with the rapidly changing legal landscape. Businesses should also be aware of applicable laws or regulations when drafting these contracts.

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Even though the legal implications of AI are still evolving, corporate counsel should be prepared to address any potential issues and ensure that their businesses remain compliant with applicable laws. By proactively addressing legal issues associated with AI, businesses can avoid costly litigation and ensure the integrity of their data and systems.

Possible Implications

Since AI affects a wide range of areas, corporate counsel needs a comprehensive understanding of the applicable laws and regulations to advise their businesses properly. Corporate counsel must also stay up to date with any changes in the legal landscape so that they are prepared to guide on any issues that arise and protect their interests by ensuring compliance.

Lastly, businesses need to be mindful of the potential implications of employment law when using AI. For example, businesses using an AI system to evaluate resumes or candidate interviews should consider the potential for biased hiring decisions resulting from this method. Businesses should also ensure that any AI systems used in the workplace comply with applicable labor laws and regulations.

Conclusion

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Corporate counsel should take a proactive approach to understand the legal risks associated with AI, aware of the importance of ensuring compliance with applicable laws and regulations. Additionally, they can help businesses mitigate potential ethical issues that may arise as AI technology continues to develop and evolve. By staying informed and up to date on the legal landscape surrounding AI, corporate counsel can help businesses prepare for any potential AI-related legal issues.

Olga MackOlga V. Mack is the VP at LexisNexis and CEO of Parley Pro, a next-generation contract management company that has pioneered online negotiation technology. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She founded the Women Serve on Boards movement that advocates for women to participate on corporate boards of Fortune 500 companies. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and  Blockchain Value: Transforming Business Models, Society, and Communities. She is working on Visual IQ for Lawyers, her next book (ABA 2023). You can follow Olga on Twitter @olgavmack.

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