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April 10, 2024

Charles Nerko Quoted in Two PYMNTS Articles on Legal Implications of AI Use

Charles Nerko, partner and team leader for data security litigation in Barclay Damon’s Data Security & Technology Practice Area, was quoted in two PYMNTS articles, “Potential Shifts in AI Accountability: Legal Experts Weigh in on Future Liability Concern” and “Best Buy Teams With Google on AI-Powered Virtual Assistant.” 

Both articles explore how using AI tools can have legal consequences and how businesses can protect themselves. 

“Potential Shifts in AI Accountability: Legal Experts Weigh in on Future Liability Concern” dives into the growing number of lawsuits regarding AI and to what degree the law holds companies accountable for their AI tools.

Charles said, “Vigilance is required because there are many ways AI can negatively impact a company and lead to costly legal liabilities and reputational damage.” He continued, “Customer service chatbots that miscommunicate information, such as understating a price or misstating a policy, can bind the company to the false data in ways that are costly or disadvantageous.”

Charles added, “Organizations should ensure the reliability and ethical standards of their AI systems in the same way they would supervise their human workforce,” and businesses can protect themselves by negotiating contracts with AI providers that mitigate the risks posed by AI. He continued, “Thorough planning, combined with proactive AI governance, can serve as a critical defense against the legal challenges posed by AI.”

“Best Buy Teams With Google on AI-Powered Virtual Assistant” highlights Best Buy’s new AI-powered customer service offerings. This article reiterated Charles’s point about the importance of companies protecting themselves when using AI tools to prevent lawsuits, citing the benefits of using contracts as a risk management tool to ensure organizations can take appropriate legal action if necessary.

Click here to read “Potential Shifts in AI Accountability: Legal Experts Weigh in on Future Liability Concern” and here to read “Best Buy Teams With Google on AI-Powered Virtual Assistant.”


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