New White House Executive Order Highlights Increased Complexity in AI Regulation – A Cross-Practice Overview

Section authors: Sandra A. Jeskie, Michelle Hon Donovan, Robert Carrillo, Ariel Seidner, Milagros Astesiano, Alex W. Karasik, Geoffrey M. Goodale, Neville M Bilimoria, Edward M. Cramp, Ted J. Chiappari, Kristopher Peters and M. Alejandra Vargas.

The White House’s October 30, 2023 Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence (“EO”) signals increased governmental regulation over the development and use of artificial intelligence (“AI”) models.  While the United States currently does not have a comprehensive AI regulation regime, many federal government agencies already regulate the use and development of AI through a complex framework of rules and regulations.  President Biden’s EO promises to add a new layer of complexity by introducing sweeping changes affecting a wide variety of industries.  Duane Morris’ multi-disciplinary team of AI attorneys are ready to help clients working with AI tools abreast of new regulations in this rapidly-evolving area of law.  Below, we summarize the most significant changes stemming from the White House’s most recent AI EO.

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Executive Order on Use of AI

On October 30, 2023, President Biden signed an Executive Order (the “EO”) providing guidance for employers on the emerging utilization of artificial intelligence in the workplace.  The EO establishes industry standards for AI security, innovation, and safety across significant employment sectors. Spanning over 100 pages, the robust EO endeavors to set parameters for responsible AI use, seeking to harness AI for good while mitigating risks associated with AI usage.

Read more on the Duane Morris Class Action Defense Blog.

Equal Employment Opportunity Commission & AI

AI in the workplace is ubiquitous and expanding rapidly. It is not only about replacing workers with robots, but instead is about the broader notion of using AI tools to assist with employment-related decisions. Commissioner Sonderling, more than any other EEOC official, has labored extensively in this area in terms of writing professional papers, giving speeches, and spearheading the Commission’s guidance in this area.

Read takeaways from the Employment Practices Liability Insurance Conference on the Duane Morris Class Action Defense Blog.

Replay: Get Smart with AI Webinar

A webinar replay of Get Smart with AI: Best Practices for Using AI in Business is available for viewing.

Mitigating AI Bias with Responsible AI Design

Now that artificial intelligence (AI) is employed widely with unprecedented consequences, there is quite a scramble to implement mitigating measures. For example, the United Trademark and Patent Office (USPTO) is soliciting public comments on what steps the USPTO should take to mitigate harms and risks from AI-enabled invention. Many of the proposed guardrails are applicable to the deployment of AI technology, to conform original output of the AI technology to desired principles, policies, guidelines, etc. However, it is no less valuable to improve the design of the AI technology, especially when various computational techniques can be readily applied.

One fundamental issue with the AI technology is producing inaccurate output, with random, sporadic errors or, more damagingly, systemic deviations leading to bias. This article presents a systematic review of how computational techniques can be utilized to help mitigate such bias.  […]

Read the full article by Agatha Liu, Ph.D. 

Taking Heed of AI Contracts

Duane Morris partner Neville M. Bilimoria authored the McKnight’s Long-Term Care article, “AI is everywhere! Addressing the legal risks through contracting.”

Mr. Bilimoria writes:

You can’t look in the news or see social media posts each day without hearing about artificial intelligence in healthcare. In fact, the advancements in AI in healthcare are making leaps and bounds, seemingly with each day that goes by.

But nursing homes and assisted living providers need to understand not just the benefits of how AI can improve quality of resident care and improved operations, but also the legal issues surrounding AI in your facility.

Read the full article on the McKnight’s Long-Term Care website.

U.S. Antitrust Draft Guidelines Address Using AI in Mergers

On July 19, 2023, the Department of Justice and the Federal Trade Commission (FTC) jointly released draft Merger Guidelines to amend and update both the 2010 Horizontal Merger Guidelines and the Vertical Merger Guidelines that were issued in 2020 and later rescinded by the FTC in 2021.

The draft guidelines underscore recent enforcement efforts to rein in technology mergers. They target large platform providers, as well as mergers that might entrench or extend a dominant position (suggesting that a 30 percent share implies a dominant position). The draft guidelines focus on multisided platforms and competition between platforms, on the platform and to displace a platform. The agencies also specifically reference the use of algorithms and artificial intelligence in assessing potential post-merger coordination. Read the full Alert on the Duane Morris website.

Promoting AI Use in Developing Medical Devices

The U.S. Food and Drug Administration (FDA) has issued a draft guidance intended to promote the development of safe and effective medical devices that use a type of artificial intelligence (AI) known as machine learning (ML). The draft guidance further develops FDA’s least burdensome regulatory approach for AI/ML-enabled device software functions (ML-DSFs), which aims to increase the pace of innovation while maintaining safety and effectiveness.

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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