Reminders for AI Companies from FTC

On January 9, 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.

AI Executive Order Impacts Different Sectors

The White House’s October 30, 2023, Executive Order on Safe, Secure and Trustworthy Artificial Intelligence signals increased governmental regulation over the development and use of artificial intelligence 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 order promises to add a new layer of complexity by introducing sweeping changes affecting a wide variety of industries.

Read the Duane Morris Alert on the most significant changes stemming from the White House’s AI executive order.

EO: Safe, Secure and Trustworthy Artificial Intelligence

On October 30, 2023, President Joe Biden signed the new Executive Order on Safe, Secure and Trustworthy Artificial Intelligence. The order is built on previous AI initiatives based on voluntary commitments the White House secured from leading AI companies and represents the first major binding government action on the technology. As such, the executive order depicts the latest U.S. government efforts in monitoring and regulating the risks of AI while also harnessing its potential in the economic, national security and social spheres.

Read the full Alert on the Duane Morris website.

Executive Order Signifies Shift in Artificial Intelligence Use

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.

Thoughts on AI from the EEOC

USA-based companies are embracing use of artificial intelligence. At the 32nd Annual Employment  Employment Practices Liability Insurance Conference in Chicago, Jerry Maatman of the Duane Morris Class Action Defense Group served as one of the co-hosts of the Conference, which addressed a broad range of topics on employment-related litigation and risk transfer strategies. Commissioner Keith Sonderling of the U.S. Equal Employment Opportunity Commission gave the keynote address at the Conference on the Legal Implications of Artificial Intelligence (“AI”) in the Workplace. Commission Sonderling shred his thoughts on the what, how, and why corporations should be “looking around the corner” to ready themselves for new class action theories and possible EEOC litigation over the use of AI.

Read more on the Class Action Defense Blog.

© 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.

Proudly powered by WordPress