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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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: Get Smart with AI: Best Practices for Using AI in Business

Duane Morris will present Get Smart with AI: Best Practices for Using AI in Business, a webinar on the benefits, risks and mitigation strategies for using AI in business, on Tuesday, October 17, 2023, from 12:00 p.m. to 1:00 p.m. Eastern.

REGISTER

About the Program

The AI revolution has already begun. To remain competitive in the AI era, businesses must learn and adapt as quickly as AI technology does. Topics include: introduction to AI; global response to AI including relevant laws and initiatives; possible uses of AI in business; and specific AI risks and mitigation strategies for copyright and IP rights and ownership issues, privacy and security compliance, employment law compliance, scraping of business data, and other takeaways. 

Speakers

    • Sandra A. Jeskie
    • John M. Benjamin
    • Matthew C. Mousley
    • Luke P. McLoughlin
    • Jennifer M. Lantz
    • Alex W. Karasik

Learn more about the event and Duane Morris’ artificial intelligence team.

© 2009- Duane Morris LLP. Duane Morris is a registered service mark of Duane Morris LLP.

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

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