Decades in Business, Technology and Digital Law

10 Recent Legal Developments Affecting AI

by | Jun 2, 2024 | Firm News


Over the past year, several significant legal developments in the United States have impacted AI businesses and developers. Here are the ten most important ones. I’ll cover each one of these in more detail with posts over the next several weeks. Follow me on LinkedIn to make sure you don’t miss them:

  1. FTC’s First AI Enforcement Actions: The Federal Trade Commission (FTC) initiated its first enforcement actions related to AI, signaling increased regulatory scrutiny on how AI technologies impact consumer protection and competition. This sets a precedent for future regulatory measures.
  2. SEC Proposed AI Rules: The Securities and Exchange Commission (SEC) proposed new rules to address conflicts of interest in the use of AI by broker-dealers and investment advisers. These rules aim to ensure transparency and fairness in financial services and are expected to be finalized in 2024.
  3. California Privacy Protection Agency (CPPA) Draft Regulations: The CPPA issued draft regulations on automated decision-making technologies under the California Consumer Privacy Act (CCPA). These regulations give consumers more control over how their data is used by AI systems, including the right to opt-out of certain AI-driven decisions​.
  4. AI Insight Forums: Senate Majority Leader Chuck Schumer launched a series of AI Insight Forums aimed at educating Congress on key AI issues and facilitating the development of comprehensive AI legislation. These forums have covered various topics, including copyright, innovation, and societal impacts​.
  5. Bipartisan Framework for AI Legislation: Senators Richard Blumenthal and Josh Hawley released a bipartisan framework for AI legislation. This proposal includes a licensing regime for high-risk AI models and represents a significant step towards establishing a regulatory framework for AI in the U.S​.
  6. Copyright Office and Patent and Trademark Office Guidance: Both agencies have issued enforcement actions and guidance regarding AI-related matters, emphasizing the need for human input to qualify for copyright and patent protections. This is crucial for AI developers seeking to protect their intellectual property​.
  7. Executive Order on AI Cybersecurity: The U.S. government issued an executive order focusing on AI cybersecurity, which includes testing and reporting requirements for companies developing certain AI tools. This aims to mitigate the risks of AI-driven cyberattacks and ensure the security of AI systems​.
  8. Authors Guild v. OpenAI Inc.: This ongoing lawsuit, where novelists accuse OpenAI of using their works without permission to train AI models, highlights the legal challenges surrounding the use of copyrighted materials in AI training datasets​.
  9. AI-Driven Decision Making in Employment: The Equal Employment Opportunity Commission (EEOC) and the Department of Justice (DOJ) issued guidance on the use of AI in employment decisions, emphasizing the need for compliance with anti-discrimination laws. This affects how AI is used in hiring and other employment-related decisions​.
  10. AI Ethics and Governance Initiatives: Various U.S. federal agencies and organizations have been actively developing AI ethics and governance frameworks. These initiatives aim to ensure that AI development and deployment are aligned with ethical standards and societal values​.

These developments indicate a growing focus on regulating AI technologies in the U.S., aiming to balance innovation with the protection of consumer rights, intellectual property, and ethical standards.

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