L-AI-ABILITY (The potential liability of AI deployment)

A recent article in the Wall Street Journal highlights a coming challenge faced by companies deploying generative AI in many domains. Litigation.

Christopher Mims’ article: “The AI Industry Is Steaming Toward A Legal Iceberg” cites a current case in which OpenAI is being sued for defamation by a Georgia radio host who alleges that the company’s chatbot wrote an answer that falsely accused him of embezzlement. The counter argument from OpenAI was essentially that AI is merely a tool used by people to create content.

But with AI it is the tool that is doing the creating. It’s not unlike a customer who asks a company’s employee to conduct an analysis, produce a legal document, evaluate an investment, prepare taxes, offer advice, or even answer customer support questions. When the employee delivers that output, the company is liable for it. Which is why we take such great care to properly train employees.

How are our AI “employees” any different?
What legal liabilities should we take into account when deploying AI?

Bill Haines, Partner