When Does Use of AI Set Off an Alarm in the Invention Process?

As generative AI is increasingly used to process information and generate new content, one possible application is to create an alternative embodiment in a patent application.  This could happen when an inventor creates an original embodiment, and then instructs an AI system to create a variant of the original embodiment to achieve broad coverage.  Conceivably, the AI system is configured to create an alternative embodiment based on existing data used to train the AI system or additional information that can introduce changes to the original embodiment, such as prior art in the field.  Would such use of AI be an innocent act or should it trigger an alarm like certain other uses of AI?

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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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Decoding and Leveraging AI Regulations for Beauty Sector in US and EU

Duane Morris’ Agatha Liu and Kelly Bonner were interviewed by Personal Care Insights about the challenges and opportunities beauty companies face while using AI to appeal to younger consumer demographics. Below is an excerpt of the article.

How does the competitive landscape of the beauty industry impact businesses’ use of AI technologies, especially when it comes to targeting younger consumer segments?
Bonner
: The highly competitive nature of the beauty industry, with its desire to appeal to younger consumers, is certainly a key driver in beauty brands embracing AI tools to offer enhanced customer shopping experiences.

Can you provide some context about US AI regulations that the beauty industry should know? What do you expect is coming, especially considering the AI Act in the EU?

Liu: The EU AI Act imposes specific obligations on the providers and deployers of so-called high-risk AI systems, including testing, documentation, transparency and notification duties.

To read the full interview, please visit the Personal Care Insights page.

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.

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.)

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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.)

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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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