Generative AI In Business Operations: 5 Legal Aspects To Keep An Eye On

• Published date: 18 March 2024
• Subject Matter: Insurance, Intellectual Property, Privacy, Technology, Data Protection, Insurance Laws and Products, Copyright, New Technology
• Law Firm: Lindahl
• Author: Mr Alexander Tham and Mikael Olsson

As generative AI takes great strides forward in the business activities of more and more companies and organisations, there are several legal aspects to be aware of. In anticipation of the upcoming AI regulation, Lindahl's experts Alexander Tham and Mikael Olsson list five key legal areas to take into consideration when generative AI is used.

AI AND COPYRIGHT

Even though we are still waiting for the legislator or the courts to finally determine the situation, there is nevertheless broad consensus among lawyers that what is produced by AI tools cannot be protected by copyright, which is reserved for works produced by humans.

Risk: If the output from the AI tool cannot be protected and made subject to an exclusive right, there is a risk that the economic value of what is produced will be limited, perhaps to the extent that the investment in input and tools does not correspond to what is extracted.

What you can do: Make sure to have guidelines for the use of AI in your business: the steps AI will be used in, and consider in advance how intellectual property values will be safeguarded at each stage. Also ensure that the business' agreements are compatible with the absence of copyright, for example when it comes to guarantees and transfer provisions.

AI AND INTELLECTUAL PROPERTY INFRINGEMENTS

The person who supplied the input data and instructions to an AI tool is typically liable for the output from the tool. The user may also be liable if the output contains material added independently by the AI tool that proves to be subject to intellectual property restrictions (for example if the tool has added code that is subject to an open source license).

Risk: The use of AI output containing a third party's material that is protected by intellectual property entails a risk that the user may become subject to actions for infringement, claims for damages and loss of goodwill.

What you can do: Make sure to have internal guidelines for use of AI, including comprehensive documentation. This is for the purpose of identifying the origin of the data and ensuring the legality of its use and also subsequent tracking. Investigate and document the data the AI tool has been trained on.

AI, DATA PROTECTION AND CONFIDENTIALITY

The content input into the AI tool may be subject to confidentiality by law or in accordance with an agreement. Furthermore, output or areas of use relating to individuals may be subject to protection under personal data legislation. At the same time, the...