{"id":200,"date":"2024-01-26T15:00:09","date_gmt":"2024-01-26T19:00:09","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/?p=200"},"modified":"2024-01-26T15:04:37","modified_gmt":"2024-01-26T19:04:37","slug":"the-ai-update-january-26-2024","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/2024\/01\/26\/the-ai-update-january-26-2024\/","title":{"rendered":"The AI Update | January 26, 2024"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-96 size-full\" src=\"http:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-content\/uploads\/sites\/63\/2023\/04\/DM-AI-Update-e1681141844877.png\" alt=\"\" width=\"150\" height=\"60\" \/><em>#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 <a href=\"https:\/\/www.linkedin.com\/posts\/dr-laura-caroli-0a96a8a_ai-act-consolidated-version-activity-7155181240751374336-B3Ym\/\" target=\"_blank\" rel=\"noopener\">published<\/a> unofficially, but the final vote hasn\u2019t happened yet, so we\u2019re 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\u2019ll listen. Let\u2019s stay smart together.\u00a0 (<a href=\"mailto:AI-Update@duanemorris.com?subject=Subscribe%20to%20the%20mailing%20list%20&amp;body=Please%20add%20me%20to%20The%20AI%20Update%20list.\">Subscribe to the mailing list<\/a>\u00a0to receive future issues.)<\/em><\/p>\n<p><!--more--><\/p>\n<p><strong>Beyond the ChatGPT lawyer. <\/strong>State bar associations are increasingly accepting that generative AI is here to stay\u2014and that \u201cguiding principles\u201d for usage are better than outright bans. Back in November, the California state bar published a <a href=\"https:\/\/www.calbar.ca.gov\/Portals\/0\/documents\/ethics\/Generative-AI-Practical-Guidance.pdf\" target=\"_blank\" rel=\"noopener\">Practical Guidance<\/a> document that included \u201cguiding principles\u201d like (a) avoid uploading client confidences to inadequately secured AI tools; (b) don\u2019t rely on AI outputs without close human review; and (c) don\u2019t charge clients for the time you saved by using a generative AI product.<\/p>\n<p>This month, the Florida state bar chimed in, publishing an <a href=\"https:\/\/www.floridabar.org\/etopinions\/opinion-24-1\/\" target=\"_blank\" rel=\"noopener\">Ethics Advisory Opinion<\/a> adopting many of the same principles as California and adding three noteworthy morsels:<\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>get a \u201cclient\u2019s informed consent\u201d before using third-party AI tools that will receive client confidential information,<\/li>\n<li>treat the AI model\u2019s output the same way you would treat a (human) paralegal\u2019s or legal assistant\u2019s work product\u2014review, verify, and, as the lawyer on the file, accept ultimate responsibility, and<\/li>\n<li>be <em>very <\/em>careful when using AI chatbots for advertising and client intake purposes\u2014you\u2019ll be held responsible for any untoward messaging the model may inadvertently produce.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>A deal for SAG-AFTRA voice actors.<\/strong> Another month, another actors guild agreement. On January 10, SAG-AFTRA <a href=\"https:\/\/www.sagaftra.org\/member-message-regarding-new-replica-studios-agreement\" target=\"_blank\" rel=\"noopener\">announced<\/a> a deal with Replica Studios allowing the latter to use SAG-AFTRA voice performers to internally create and, separately, externally license \u201cDigital Voice Replicas.\u201d Most interestingly for our purposes, the guild published the <a href=\"https:\/\/www.sagaftra.org\/files\/sa_documents\/Replica%20Studios%20Agreement%20for%20Digital%20Voice%20Replicas_0.pdf\" target=\"_blank\" rel=\"noopener\">full text<\/a> of the two agreements\u2014one for \u201cdevelopment use\u201d and the other for \u201cexternal and licensing use\u201d\u2014along with a <a href=\"https:\/\/www.sagaftra.org\/files\/sa_documents\/Summary%20of%20Replica%20Studios%20Agreement%20for%20Digital%20Voice%20Replicas.pdf\" target=\"_blank\" rel=\"noopener\">summary<\/a> and <a href=\"https:\/\/www.sagaftra.org\/files\/sa_documents\/Replica%20Studios%20Agreement%20FAQs.pdf\" target=\"_blank\" rel=\"noopener\">FAQ<\/a>.<\/p>\n<p>There are plenty of interesting aspects in these materials for the AI aficionado, under the development agreement, performers must provide \u201cinformed consent\u201d and get a \u201csession fee\u201d (four-hour minimum), with rates based on the existing SAG-AFTRA Interactive Media Agreement. The performer\u2019s consent lasts only one year; to add another, Replica Studios has to obtain \u201ccontinued informed consent\u201d and make another minimum payment.<\/p>\n<p>Under the external license agreement, Replica Studios must separately bargain with voice actors for their consent to an \u201cExternal Use\u201d or \u201cLicense\u201d of the digital voice double. This is exactly what you\u2019re thinking: use in a TV show, movie, video game, ad, etc. In general, Replica Studios must get consent use-by-individual-use, rather than advance consent to a broad, general category of uses. And in its Addendum, the agreement sets out complicated schedules for calculating the performer\u2019s compensation (in part based on the number of lines used) and other nuanced requirements.<\/p>\n<p>In both agreements, Replica Studios has to take \u201ccommercially reasonable steps\u201d to prevent the Digital Voice Replica from being hacked, stolen, or used without permission\u2014and must indemnify the performer for any use that is defamatory or unlawful.<\/p>\n<p><strong>The FTC flexes its (investigatory) muscles.<\/strong> Speaking of voices, the Federal Trade Commission has been increasingly vocal about the possibility of regulating generative AI under the Commission\u2019s Section 5 power to police against unfair or deceptive trade practices. For instance, this past December, the FTC published a <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/12-15-2023AICEStaffReport.pdf\" target=\"_blank\" rel=\"noopener\">Staff Report<\/a> on \u201cGenerative Artificial Intelligence and the Creative Economy,\u201d and for us, pages 5-6 were the most interesting section. There, the FTC itemizes its recent AI-related enforcement activity, including against Amazon and Ring for collecting voice and video recordings in privacy-problematic ways. The Commission also hypothesizes about situations where it might intervene in the future, to protect against undue concentrations of control over \u201ccomputing power\u201d and \u201clarge stores of training data\u201d\u2014and to defend authors\u2019, musicians\u2019, and creators\u2019 \u201cwriting style, vocal or instrument performance, or likeness.\u201d<\/p>\n<p>As of this week, this discussion seems less academic. On January 25, the FTC announced it was launching an <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/01\/ftc-launches-inquiry-generative-ai-investments-partnerships\" target=\"_blank\" rel=\"noopener\">inquiry<\/a> into several partnerships between traditional Big Tech companies and LLM start-ups. Specifically, the Commission is looking into OpenAI\u2019s relationship with Microsoft and Anthropic\u2019s relationships with Google and Amazon. The FTC\u2019s <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/P246201_AI_Investments_6%28b%29_Order_and_Resolution.pdf\" target=\"_blank\" rel=\"noopener\">orders<\/a> also require the companies to report on their investments.<\/p>\n<p><strong>What we\u2019re reading. <\/strong>If you\u2019re a human, don\u2019t eat the berries of the <em>belladonna<\/em>, because this toxic \u201cnightshade\u201d plant can be lethal. If you\u2019re a generative AI system, watch out, a digital equivalent is here: Researchers at the University of Chicago just released <a href=\"https:\/\/nightshade.cs.uchicago.edu\/whatis.html\" target=\"_blank\" rel=\"noopener\">Nightshade<\/a> in electronic form. This software tool \u201cpoisons\u201d the data in digital images to make them unsuitable for model training. While the images look ordinary to the human eye, the modified data purportedly induces AI models to generate unwanted results. According to the researchers, \u201ca prompt that asks for an image of a cow flying in space might instead get an image of a handbag floating in space.\u201d Honestly though, that sounds like a cool picture too.<\/p>\n<p><strong>What <em>should <\/em>we be following?<\/strong> Have suggestions for legal topics to cover in future editions? Please send them to <a href=\"mailto:AI-Update@duanemorris.com\">AI-Update@duanemorris.com<\/a>. We\u2019d love to hear from you and continue the conversation.<\/p>\n<p><strong><em>Editor-in-Chief<\/em><\/strong><strong>: <\/strong><a href=\"mailto:agoranin@duanemorris.com\">Alex Goranin<\/a><\/p>\n<p><strong><em>Deputy Editors<\/em><\/strong><strong>:<\/strong> <a href=\"mailto:mcmousley@duanemorris.com\">Matt Mousley<\/a> and <a href=\"mailto:tmarandola@duanemorris.com\">Tyler Marandola<\/a><\/p>\n<p><em>If you were forwarded this newsletter, <\/em><a href=\"mailto:AI-Update@duanemorris.com?subject=Subscribe%20to%20the%20mailing%20list%20&amp;body=Please%20add%20me%20to%20The%20AI%20Update%20list.\"><em>subscribe to the mailing list<\/em><\/a><em> to receive future issues.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>#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\u2019t happened yet, so we\u2019re biding time for now. Meanwhile, in this issue, we check in with state bar associations, SAG-AFTRA, and the FTC. They &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/artificialintelligence\/2024\/01\/26\/the-ai-update-january-26-2024\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;The AI Update | January 26, 2024&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[27,15,14,34,16,146,17],"ppma_author":[5],"class_list":["post-200","post","type-post","status-publish","format-standard","hentry","category-general","tag-ai","tag-alex-goranin","tag-chatgpt","tag-ftc","tag-matt-mousley","tag-sag-aftra","tag-tylermarandola"],"authors":[{"term_id":5,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/posts\/200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/comments?post=200"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/posts\/200\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/media?parent=200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/categories?post=200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/tags?post=200"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/artificialintelligence\/wp-json\/wp\/v2\/ppma_author?post=200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}