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AI and Privacy: Mitigating Legal Risk and Liability
The continued, rapid advancement of artificial intelligence technologies comes with increasing risks for businesses, demanding that they navigate such issues more carefully than ever. Considering recent privacy class action trends detailed in this article, companies that utilize AI in their business operations should immediately review and modify their compliance programs as necessary to mitigate legal risk and liability exposure.
Imagine this scenario: Your company just launched a new AI-powered customer support tool. It’s fast, responsive, and delights users — exactly the kind of digital experience your leadership has been pushing for. Months later, and seemingly out of nowhere, you are served with a class action complaint. The lawsuit alleges that your AI tool records customer conversations and uses those recordings to improve and enhance the tool’s capabilities and functionality, without first obtaining customer consent. As a result, your platform violates numerous wiretapping, biometrics, and consumer protection laws, entitling your customers to statutory damages ranging between $5,000 and $20,000 for each violation of each separate statute — even though they suffered no actual injury or harm of any kind.
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