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The rise and notoriety of generative artificial intelligence technologies created a boom in artificial intelligence (AI) technologies of all kinds. Businesses raced to either roll out their own AI systems or find AI vendors to integrate the technology into their operations. While the law has struggled to keep pace, this boom has caught the attention of legislators and regulators. For example, substantive provisions of the European Union’s AI Act will come into force on Feb. 1, 2025, and the Colorado state legislature passed a landmark AI bill that comes into effect in February of 2026. Existing laws also implicate AI, such as in the privacy, intellectual property, and employment spaces.
As AI systems continue to proliferate all aspects of business, it’s time to think through the risks associated with the use of AI and who bears that risk in vendor agreements, joint ventures, and the like. In addition to increased regulatory attention, discoverable but unknown risks in using AI may expose a business to various avenues of liability, such as disruption in operations, data breaches, and decision-making outcomes that may lead to litigation. AI’s risk potential has been the discussion of endless debate, but one question remains: where do we go from here?
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