Generative AI: IP and Data Considerations

3 min

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Artificial intelligence (AI) has taken center stage as an important new technology resource. Generative AI tools and systems, like ChatGPT, can increasingly perform some of your organization's tasks or decision-making with increased efficiency. But these tools or systems present new risks and issues for consideration.

Generative AI uses computational techniques to produce new, creative outputs from what are, often, conversational prompts or inputs. Generative AI can answer questions, analyze data, write code, create new images based on descriptions, or create videos of real or fictional situations.

As generative AI becomes more popular, it will be important to consider the ramifications of using this technology and the importance of implementing best practices and other guidelines, both for protection and to take advantage of the opportunities presented by AI. Here are a few of the data and intellectual property (IP) issues to consider when deciding whether, and how, to use AI:

  • Don't let enthusiasm outpace an understanding of appropriate use or expectations for any output
  • Establish organizational policies and best practices governing the use of AI and any generative output
  • Appreciate that the current generation of AI tools and systems may function best only within a narrow scope of intended uses, and carefully consider what tasks these tools should be used for
  • Consider the resources that AI draws its information from and whether additional IP rights clearance considerations are warranted
  • AI input and output still require human review and verification
  • Understand that IP rights to AI work product remain unresolved. Don't use AI to create output if there is a need for IP ownership and, in particular, the right to exclude or limit use of such output by others
  • Don't ignore industry, sectoral, or legal compliance obligations. AI use, like any other organizational activity, can still be regulated. Understand and scrutinize in advance whether a particular AI tool or system and the resultant output can still meet any legal, compliance, or ethical requirements
  • Current AI tools usually require the use of cloud computing resources. Remain mindful of related information security needs and don't use AI resources that aren't supported by confidentiality practices, including the use of privacy and non-disclosure covenants to protect or process sensitive, confidential, or privileged information
  • Review the terms and legal documents for any AI resource to ensure consistency with established privacy, IP, and data processing practices
  • Be aware that evolving best practices, industry guidelines, laws, and regulations may further impact AI utilization

AI will likely remain an important part of part of an organization's operations for the foreseeable future. It's best to be proactive in learning about the risks, opportunities, and best practices of this technology.

If you have questions or concerns about AI and current generative AI legal issues, please contact Heather West for privacy and data security considerations or A.J. Zottola for intellectual property and transactional matters. And please subscribe to Tech Contract Quick Bytes.