In this week’s News of Note, Amazon continues its competition with Starlink by launching another batch of internet satellites, WhatsApp receives a ban by congressional staffers and “the ChatGPT of quantum computing” launches in Canada. Elsewhere, Texas Instruments announces a major investment in semiconductor production in the United States.
In this week’s News of Note, Disney and Universal target alleged copyright infringement, OpenAI and Mattel team up to bring artificial intelligence to toymaking and China launches its production of the world’s first non-binary AI chip. Elsewhere, Nvidia announces its major expansion into Europe with its first industrial AI Cloud.
Imagine you’re an associate at a consulting firm. You’re surprised to see a new “AI Assist” button appear in your email application one morning. Without any training or guidance from your firm’s IT department, you decide to try it out, asking the AI to draft a response to a client’s inquiry about tax implications for a proposed merger. The AI confidently generates a response that looks professional and well-written, which you quickly review and send. Three days later, your managing partner calls you into their office—the AI cited outdated tax regulations and recommended a structure that would create significant liability for the client. The incident triggers an urgent internal review, revealing that dozens of employees have been using the undisclosed AI feature for weeks, potentially exposing the firm to professional liability and damaging client relationships.
The latest trend in generative AI is the rise of “AI Assistants” or “Chatbots.” These tools are increasingly trained on internal company data to interact directly with consumers and aim to improve customer service by generating responses on behalf of the organization. However, this brings new legal challenges, especially regarding data privacy. Because “biometric” data or information is often broadly defined, compliance with privacy regulations becomes critical when chatbots and AI agents use voiceprints, cameras (capturing or processing hand or facial geometry) or other sensors to provide a personalized service. Companies should implement safeguards to meet legal requirements, avoid penalties, and secure insurance coverage to mitigate financial risks related to compliance with data privacy laws and regulations.
The California legislature recently passed Assembly Bill 2013 (AB 2013) on August 27, 2024, a measure aimed at enhancing transparency in AI training and development. If signed into law by Governor Gavin Newsom, developers of generative AI systems or services that are made available to Californians would be required to disclose significant information on the data used to train such AI systems or services. This, in turn, may raise novel compliance burdens for AI providers as well as unique challenges for customers in interpreting the information.
OpenAI’s defense of the lawsuit brought by The New York Times (“The Times”) has sparked controversy relating to OpenAI’s discovery demand for access to reporter notes and other behind-the-scenes materials associated with millions of articles that appeared in The Times.
Colleagues Jennifer Altman, Shani Rivaux and Macarena Fink provide a briefing on OpenAI’s discovery request in their recently published client alert, “Discovery Dilemma: An Update on the Legal Battle Between The New York Times and OpenAI.”
In late June, Universal Music Group (UMG) Records, Sony Music Entertainment, and other major record labels filed two complaints against two generative artificial intelligence (“gen AI”) music startups, Suno, Inc. (Suno) and Uncharted Labs, Inc. (Udio). The concurrently filed complaints allege that the gen AI technology produced by Suno and Udio directly infringes on copyrights owned by these record labels.
Colleagues Shani Rivaux, Macarena Fink and Catherine Perez provide a briefing on these complaints in their recently published client alert, “Legal Riffs: Music Industry Alleges AI Is Out of Tune.”
Global music superstar Taylor Swift began her music career in Nashville, so we thought it fitting that on July 1, with the end of the Eras Tour in sight, the Ensuring Likeness Voice and Image Security (ELVIS) Act went into effect in Tennessee. This marks the latest front in the effort to navigate the interplay between the capability of generative AI and the Right of Publicity for music and voice artists alike.
In this week’s edition of Consumer Protection Dispatch, we look at the latest regulatory developments from the U.S. Department of Commerce, Consumer Financial Protection Bureau, and the Securities and Exchange Commission regarding data and AI.
(The Consumer Protection Dispatch summarizes industry news and updates on emerging issues involving a variety of consumer protection issues including, but not limited to, data and AI.)
This week’s edition includes latest developments relating to AI laws passed by Colorado, Tennessee and Utah, U.S. Senate bipartisan working group on AI, a new privacy bill from Vermont and a new privacy law from Maryland, a new Colorado law protecting neural data, and updates from the California Privacy Protection Agency.
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