Key Legal Issues in Using Generative AI: Overview (US)

by Practical Law Commercial Transactions, Data Privacy & Cybersecurity, Intellectual Property & Technology, and Labor & Employment

A Practice Note that explores the key legal issues relating to the use and development of generative AI (GenAI). It considers critical areas such as privacy and data security, intellectual property (IP), employment, and commercial transactions. This Practice Note discusses the implications of US state AI laws, including Colorado's Artificial Intelligence Act and Utah's AI consumer protection amendments, as well as international laws like the EU General Data Protection Regulation (GDPR) and EU AI Act. It also examines IP concerns, such as copyright protection for AI-generated works and potential infringement liability. It addresses employment law challenges related to GenAI's workplace integration, including potential bias and confidentiality issues, emphasizing the need for robust policies and training. This Note also highlights commercial transaction risks and the importance of third-party vendor assessments, compliance protocols, and contractual safeguards. This Practice Note provides guidance on managing these risks to ensure ethical and legal use of GenAI technology.