Calif. Court Dismisses AI Suit Involving Discrimination

In Mobley v. Workday, Inc., Case No. 23-CV-770 (N.D. Cal. Jan 19, 2024) (ECF No. 45), Judge Rita F. Lin of the U.S. District Court for the Northern District of California dismissed a lawsuit against Workday involving allegations that algorithm-based applicant screening tools discriminated applicants on the basis of race, age, and disability. With businesses more frequently relying on artificial intelligence to perform recruiting and hiring functions, this ruling is helpful for companies facing algorithm-based discrimination lawsuits in terms of potential strategies to attack such claims at the pleading stage.

Read more on the Duane Morris Class Action Defense Blog.

AI-Related Healthcare Fraud on DOJ’s Radar

Artificial intelligence (AI) can enhance efficiencies in providing healthcare in many ways, one of which is by utilizing algorithms to read medical records and thereby assist providers in better understanding their patients and treatments that may be available. Increasingly, electronic medical review (EMR) software companies are utilizing AI to boost their products, offering hospitals, healthcare facilities, and physicians powerful tools that can enhance their decision-making as to operations and treatment.

Read more on the Duane Morris Health Law Blog.

The AI Update | January 26, 2024

#HelloWorld. January has not been especially frantic on the legal-developments-in-AI front. Yes, we know the anticipated final text of the EU AI Act was published unofficially, but the final vote hasn’t happened yet, so we’re biding time for now. Meanwhile, in this issue, we check in with state bar associations, SAG-AFTRA, and the FTC. They have things to say about AI policy too, so we’ll listen. Let’s stay smart together.  (Subscribe to the mailing list to receive future issues.)

Continue reading “The AI Update | January 26, 2024”

FTC launches GenAI investigation

The Federal Trade Commission announced today that it has begun an investigation into Generative AI investments and partnerships. The FTC is using its investigative power pursuant to Section 6(b) of the FTC act which allows the FTC to issue compulsory process (similar to a subpoena or Civil Investigative Demand) to learn information about an organization, without a specific law-enforcement purpose. Historically, the FTC has used its 6(b) power to conduct studies regarding particular industries or practices that may inform future agency positions or enforcement priorities.  The investigation announced today is a concrete fact-gathering step by the FTC regarding the regulation of Generative AI.

What does herring fishing have to do with AI?

Herring fishing – of all things – could have a big impact on AI regulation in 2024. That is, cases brought by two herring fishing companies are before the Supreme Court that could have wide-reaching influence. The cases challenge actions taken by the National Marine Fisheries Service and longstanding Chevron deference. Under Chevron, courts afford deference to reasonable agency interpretations of ambiguous laws. At oral argument last week, the Court signaled a willingness to overturn Chevron deference. This is notable for the Artificial Intelligence space that lacks explicit legislation from Congress.  Indeed, the Executive Order on Artificial Intelligence last year is largely directed at Federal Agencies, instructing the agencies to take action. In the absence of Chevron deference, actions taken by agencies pursuant to that order could be more susceptible to legal challenge.  Justice Kagan even called out AI in oral argument as an area that could see effects from the Court’s ruling. The Supreme Court is expected to rule by the end of June.

The AI Update | January 11, 2024

#HelloWorld. It’s 2024 and we… are…back. Lots to catch up on. AI legal developments worldwide show no signs of letting up, so here’s our New Year’s resolution: We’re redoubling efforts to serve concise, focused guidance of immediate use to the legal and business community. Let’s stay smart together. (Subscribe to the mailing list to receive future issues.)

Continue reading “The AI Update | January 11, 2024”

FTC Staff Issues Reminders to AI Companies

Today, the Staff in the Office of Technology of the Federal Trade Commission (“FTC”) posted a reminder to AI companies, enumerating the ways that they can run afoul of the laws enforced by the FTC. In particular, FTC Staff called out Model-as-a-Service companies, and impressed the importance of safeguarding individual and proprietary data involved in creating the models. FTC Staff indicated that there could be both consumer protection and competition concerns associated with a failure to do so. Further, FTC Staff warned that AI companies need to be forthcoming in how data is being used, and companies that omit material facts that would affect whether customers buy a particular product or service may run afoul of competition laws.

 

Webinar: GDPR and Proposed AI Laws in Europe

Duane Morris LLP will present a webinar, The Data Privacy and Security Landscape: International Developments in Privacy, on Wednesday, January 17, 2024, at 11:00 a.m. Eastern time/11:00 p.m. Vietnam time.

REGISTER 

About the Program

The web of data protection laws being introduced across the world continues to become ever more complex. This program will present a discussion of data protection laws in countries that present some of the most significant risks. Beginning in Europe, we will discuss the new rules around cross-border transfers, trends and approaches from the regulator to the enforcement of the GDPR and its interaction with proposed AI laws. Visit the Duane Morris website for more information. Continue reading “Webinar: GDPR and Proposed AI Laws in Europe”

Guidelines Discuss Role of Tech in Mergers

On December 18, 2023, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) jointly issued new Merger Guidelines. The new guidelines amend, update and replace the numerous versions of merger guidelines previously issued by both agencies.

Big tech platforms will likely continue to be in the agencies’ crosshairs, including by looking back or forward at smaller acquisitions that may enhance or extend dominant positions based on technology platforms or arguably eliminate potential competition.

Read the full Alert on the Duane Morris 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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