FINAL THOUGHTS - WHAT IS NEXT?
Artificial Intelligence (AI) AI laws and regulations are being considered worldwide along with voluntary guidelines and standards. Legislation on artificial intelligence is evolving. The FTC, EEOC and other federal agencies have provided some guidance, generally warning of discriminatory impacts in outputs and urging developers to seek and respect user consent. There is no comprehensive national law governing AI, such as the EU’s AI Act. As with other areas of data law, states are rushing in to fill the void. In 2024, 45 US states introduced almost 700 different AI bills. The new AI laws tend to focus on disclosures around how the AI models work, seek to prevent bias (particularly in areas of employment), and require ethical development with human oversight. The Colorado AI Act, which goes into effect on February 1, 2026, will require specific disclosures, documents and impact assessments for high-risk AI systems that play a substantial role in making “consequential decisions” relating to education, employment, financial services, housing, health care or legal services. One of California’s new AI laws, for example, will require developers of generative AI systems to publish a summary of the datasets used to train such systems on their website. These laws require changes now. Companies should include language around how both their business data and personal data can or cannot be used by their vendors’ AI model. If your business uses AI in its offerings or has its own AI offering, it is important to allocate risk and tailor ownership language and rights around inputs and outputs.
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