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Companies face potentially tighter constraints on AI use as regulators lead drive to assess risks

Business Insurance

  • May 1, 2024

The regulatory and potentially statutory framework emerging to govern the development and use of artificial intelligence will likely create compliance requirements for organizations and possibly legal exposures as well.

“The regulations will give the legal framework and the guardrails within which companies need to operate,” said Pamela Hans, managing shareholder of the Philadelphia office of Anderson Kill P.C.

The movement toward such a framework is just beginning, though several major companies have acted independently to restrict the use of generative AI by employees due to privacy and security concerns, according to news reports.

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“Regulators want to protect against unfair uses of AI,” said Marshall Gilinsky, a shareholder in Boston and New York for Anderson Kill P.C., who practices in the firm’s insurance recovery and commercial litigation departments.

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