AI Price Fixing and Discrimination with Recommendations for Retailers
Next year will likely bring more lawmaking surrounding artificial intelligence algorithms used to set consumer pricing. Two themes are emerging: price fixing and price discrimination. AI price fixing uses algorithms to coordinate pricing, which is raising increased scrutiny in the U.S. and Europe. Companies provide competitively sensitive data to third-party providers that analyze it to recommend prices for participating companies, leading to artificially inflated prices a...
Shadow AI: How Can Companies Protect Against Unknown Uses?
Employees don’t always wait for their employers to approve new technology. This could be using a personal chatbot account to summarize a document, installing an AI browser extension, uploading information into an AI analysis tool or using an AI feature built into software without their employer knowing about it. This practice is often referred to as “shadow AI.” Shadow AI is typically not malicious. Often, it’s the result of employees wanting to work more efficiently, or as a result of unclea...
AI Notetakers: Key Takeaways for Recording Calls
Use of AI notetakers is quickly becoming routine. These tools can automatically join video calls, listen to conversations, generate transcripts, create summaries, and identify key points in a meeting. While these tools have an argument for efficiency, they also create legal, privacy, and confidentiality risks. This issue is a lot more complicated than simply asking participants of a meeting for their consent to be “recorded.” This is because recording, transcription, and AI processing a...
Healthcare AI data breaches: Why companies need to protect more than patient records
Healthcare and life science companies are not only protecting traditional patient records – things like names, diagnoses, treatment notes, lab results, and insurance information. They may also be protecting clinical trial data, research data, vendor systems, proprietary models, and other information used to support patients and drug development. When these companies and systems are involved in data breaches, the legal risks can become broader than a standard data breach. A useful example is...
AI Use in Clinical Trials: Privacy, Confidentiality, and Compliance Risks
Artificial Intelligence (AI) is becoming increasingly common in health care clinical trial operations. Sponsors, contract research organizations, research sites and vendors may use AI for many tasks such as patient recruitment, eligibility screening, and informed consent support among other things. While this can improve efficiency, these tools may also create privacy, confidentiality and compliance risks in an already highly regulated environment. Clinical trials often involve sensitiv...
Eyes on AI Chatbots: New State Laws Target Child Safety, Disclosures and Crisis Response
AI companion chatbots have recently become a focus of state AI regulation. Unlike task-oriented chatbots, companion chatbots may be designed to simulate conversation, friendship, emotional support or other ongoing personal relationships. These features may create heightened legal and safety concerns, especially when users are minors, emotionally vulnerable or may mistake automated responses for human support. State legislatures are beginning to address some of these risks. While s...
Why the EU AI Act belongs on every general counsel’s radar – now Governance Intelligence
Why should general counsel in the US care about a European law? Because the EU AI Act’s governance demands are set to reach far beyond the bloc. The European Union's AI Act has captured the attention of legal departments worldwide, but many US-listed companies may be making a critical mistake: treating its deferred implementation dates as a reason to postpone governance planning. General counsel and chief legal officers should not focus on when the EU AI Act's requirements become enforceab...
Deepfakes: A New Form of Workplace Sexual Harassment
In recent years, there has been an uptick in the number of cases where images generated or edited by artificial intelligence have given rise to workplace harassment claims. Regardless of whether the conduct at issue occurred in person or off duty, courts have shown a willingness to hold employers liable, leaving employers vulnerable to significant costs from employee misconduct. Current Cases Employer liability arising from AI-generated content may stem from actionable workplace hara...