Exploring Legal Risks: AI’s Role in Employment Discrimination Cases

Duane Morris Takeaway: Artificial intelligence took the employment world by storm in 2023, quickly becoming one of the most talked about and debated subjects among corporate counsel across the country. Companies will continue to use AI as a resource to enhance decision-making processes for the foreseeable future as these technologies evolve and take shape in a myriad of employment functions. As these processes are fine-tuned, those who seek to harness the power of AI must be aware of the risks associated with its use. This featured article analyzes two novel AI lawsuits and highlights recent governmental guidance related to AI use. As the impact of AI is still developing, companies should recognize the types of claims apt to be brought for use of AI screening tools in the employment context and the implications of possible discriminatory conduct stemming from these tools.

In the Spring 2024 issue of the Journal of Emerging Issues in Litigation, Duane Morris partners Jerry Maatman and Alex Karasik and associate George Schaller analyze key developments in litigation and enforcement shaping the impact of artificial intelligence in the workplace and its subsequent legal risks. Read the full featured article here.

The AI Update | April 23, 2024

#HelloWorld. In this issue, we zoom in on the world of AI model training, looking at both dataset transparency and valuation news. Then we zoom out, highlighting Stanford’s helpful summary of 2023 AI regulations and hot-off-the-press ethical guidance on AI use for lawyers from the New York State Bar. It may be a grab bag, but it’s one worth grabbing. Let’s stay smart together. (Subscribe to the mailing list to receive future issues.)

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Webinar: Explaining the New EU AI Act

Duane Morris will present Get Smart with AI: Practical Impacts of the New EU AI Act, a webinar on risk mitigation strategies for AI use in business, presented by the Technology, Media and Telecom Industry Group’s Artificial Intelligence Team, on Thursday, May 16, 2024, from 11:00 a.m. to 12:00 p.m. Eastern time and 4:00 p.m. to 5:00 p.m. London time. REGISTER FOR THE WEBINAR.

Join John M. Benjamin and Sandra A. Jeskie for a detailed explanation of the EU AI Act, the implementation and compliance timeline and strategies to prepare your business for the increased scrutiny and regulation of AI on the global stage. We will also consider its possible impact on the U.S. regulatory landscape.

Webinar: Tech Sector Regulations, Developments and Trends in the U.S., U.K. and EU

Duane Morris’ Technology, Media and Telecom Industry Group will present a webinar, Tech Sector Sanctions, Export Controls and Foreign Investment Rules in the U.S., the U.K. and the EU, on Wednesday, April 24, 2024, at 12:00 p.m. Eastern time | 5:00 p.m. London time.

The speakers will discuss recent U.S. executive orders and national security directives on inbound and outbound investment, artificial intelligence and sensitive personal data, as well as other developments and trends. REGISTER FOR THE WEBINAR.

Federal Enforcers target “AI Washing”

The SEC has entered into settlements on charges with two investment advisers based on misleading statements in their SEC filings regarding their use of Artificial Intelligence technology. Late last year, the Chair of the SEC had warned against overstating use of AI technology so as to mislead investors, and the settlements this week show an intent to follow-through with this priority. The SEC’s efforts to protect investors dovetail with the FTC’s warnings and enforcement actions against misleading consumers by overstating AI capabilities. Companies in the AI space, particularly those with SEC filing obligations, should be aware of this enforcement activity when making claims regarding their technology.

Mitigating AI Risks for Beauty Companies

Kelly Bonner and Agatha Liu of Duane Morris LLP shared their insights and experience with CosmeticsDesign on the risks of incorporating AI technology into business practices, and how can beauty companies protect themselves.

Common uses for AI in beauty & associated risks

One of the most common uses for AI technology is personalizing products and offering personalized product recommendations. “As beauty has become increasingly personalized,” Bonner explained, “companies are increasingly deploying AI technologies to enable customers to visualize new looks (virtual try-on tech) or communicate with customers via chatbots that act as virtual assistants and offer personalized product recommendations.”

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What Should GenAI Not Do in Healthcare?

With the advent of generative AI models like Med-PaLM and ChatGPT, providers can now type complex medical questions into a chat box and receive sophisticated (and hopefully accurate) answers. This ability surpasses previous AI applications in the potential to serve patients, but also in the potential to run afoul of laws like corporate practice of medicine (CPOM) rules, the False Claims Act (FCA), and FDA regulations. These concerns — on top of the risk of a generative AI model fabricating answers, known as “hallucinations” — mean that providers should proceed with extreme caution before implementing generative AI tools into their practices.

Read the full article by Matthew Mousley on the Wharton Healthcare Quarterly website.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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