Skip to main content
A Guide for Startups, Developers and Users of Artificial Intelligence across all Industries

Navigating Legal Complexities in the Age of Advanced AI:  Ai Guide for Startups, Developers and Users of Artificial Intelligence across all Industries

The speed of advancement in the development and capabilities of artificial intelligence (AI) is reshaping our interactions with technologies in ways that seem like farfetched 80’s movie fiction.  This AI Guide for Startups may age me, but some of my favorite movies growing up were Short Circuit, Flight of the Navigator and Batteries not Included.  Even Never-Ending Story had those two busty Sphinxes who were able to judge Atreyu’s confidence in deciding whether to let him through the Sphinx gate.  While I pray human civilization never gets to the point of laser wielding, decision capable, gate keepers; it turns out that the geniuses behind many of those amazing works of cinematic magic were ahead of their time.  

Artificial intelligence is a fascinating field, but now that I’m arguably a grown up, I have to face the reality that with all the intrigue and glamour of artificial intelligence comes its fair share of legal complexities, particularly in the realm of generative AI.  I will now switch from my geeky interests and put on my fancy lawyer hat to provide some guidance on AI that has some level of impact, in one way or another, on clients in all sectors of business.  From startups and developers to the end users of AI platforms in industries such as healthcare, finance, education, transportation and consulting, AI is changing the way the world does business. Our clients need to confidently implement these amazing, time-saving efficiencies, while also keeping in mind and mitigating the potential risks related to their use.

Privacy Matters

: One big issue I’ll address in this AI Guide for Startups is privacy. Generative AI can whip up incredibly realistic data, like images and text, which is amazing but also raises concerns. Think about it: The internet is full of stories relating to people using AI to create fake images or videos of people doing things they’ve never done. That ruins reputations and often even leads to blackmail. Plus, there’s the worry about fake reviews or spreading lies. To tackle this, we need clear rules about how to use AI ethically, especially when it comes to privacy and getting people’s consent. Developers and industry leaders and associations need to get savvy with privacy-preserving tricks to keep sensitive and confidential information safe.

Cybersecurity Risks

: Then there’s cybersecurity. AI-generated content is used more and more by sneaky folks with no conscience to trick others or launch cyber-attacks. Bad actors are becoming more and more believable by creating fake emails or videos designed to fool people into handing over personal info, clearing out their bank accounts or falling for other types of scams. Furthermore, AI models themselves might have weak spots, making them vulnerable to bad actors. That’s risky, especially in areas like self-driving cars or medical technology. To stay safe, developers and industry leaders need to make security a top priority. That means thorough checks, strong security measures, and keeping AI systems updated to fend off new threats. Plus, teaming up with cybersecurity experts and policymakers is key to stay ahead of the game.

Defamation Dilemmas

: Last but not least in this AI Guide for Startups, there’s the sticky issue of defamation and reputational damage.  As AI gets better at mimicking humans, it’s harder to tell what’s real and what’s not. So if someone uses AI to spread lies or hurt someone’s reputation, it’s tough to pin down who’s responsible. Our current laws might not cut it in these cases. We need updates to deal with AI-generated content and figure out who’s to blame when things go wrong. Developers can help by making it easier to verify if something is AI-made, like adding digital signatures or watermarks.

Ai Guide for Startups: In a “Flight of the Navigator Shaped” Nutshell:

As generative AI gets more advanced, the legal stuff gets trickier. From privacy worries to cyber threats and legal squabbles, it’s a lot to navigate (I had to geek out there one more time by using that word). By working together – with policymakers, tech wizards, legal experts, and industry pros – we can iron out the kinks and make sure AI powers ahead responsibly. Tackling these legal hurdles is essential if we want to make the most of generative AI while keeping everyone’s rights and interests in check. 

We urge all clients and anyone else who might be reading this to familiarize yourself with the types of AI products your business is already using or intends to procure.   Make sure you know of the vulnerabilities and work with your Information Technology teams to mitigate any potential risks that might exist.  Some AI is extremely benign and the benefit of its use far outweighs its risks.  As an attorney, that’s my favorite kind.  However, the kind that keeps me employed is the majority of AI used in business that carries quite a bit of risk, involves confidential information, and needs careful legal review and consultation to ensure that appropriate decisions are made when deciding what AI platforms to trust under your roof.  We are available to help mitigate these risks through contract negotiations and we understand the business needs on both ends of the playing field.  We can help both developers and users better protect the environment in which they implement their AI so that this fascinating technology can continue to grow and make our lives even more efficient and entertaining. 

Being that I share the name of the “Beautiful Stephanie” in Short Circuit, I must end on this quote:  “Not Malfunction, Stephanie.  Number 5 . . . Is Alive” – Johnny 5

If you’re considering starting a new venture or if you have questions about artificial intelligence or its use in your profession, we encourage you to speak to an attorney. Contact INSIDE OUT LEGAL® today to speak with an expert attorney who can help you establish the best policies and procedures to insure your success.

Leave a Reply