Charles Nerko, team leader for data security litigation in Barclay Damon’s Data Security & Technology Practice Area, was interviewed for The Heller Report article “Mitigating the Legal Risks of AI Systems.” The article emphasizes the need to oversee AI systems as carefully as human employees due to their opaque decision-making processes, which can lead to legal risks. Unauthorized use of copyrighted or confidential data, privacy law violations, and AI-generated misinformation or bias can expose companies to liability.
With no unified AI regulations, companies must navigate a mix of emerging state laws and existing legal principles. Businesses can be held accountable for AI-driven harm, much like they would for employee actions.
To mitigate risks, CIOs should involve legal teams early, establish clear AI policies, and ensure compliance with data privacy and intellectual property laws. Vendor contracts should be carefully reviewed to allocate liability and require transparency in AI operations. Charles advised, “Think of AI as a really smart intern: capable but still needing supervision. Proactive management will help you harness AI’s potential while reducing unintended and costly legal consequences.”
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