Rapid Growth and Legal Challenges
2023 has been a landmark year for AI, especially with the explosive growth of ChatGPT 3.5, reaching an unprecedented 100 million users in just two months. This rapid adoption has also brought to light various legal and regulatory issues. Numerous lawsuits and regulatory actions are on the rise, with governments worldwide, including the White House, taking significant steps to ensure safe and responsible AI development and usage.

Sheppard Mullin’s AI Legal Team
In response to these evolving legal challenges, Sheppard Mullin launched a specialized Artificial Intelligence Team. Comprising over 100 lawyers, this team addresses a spectrum of AI legal issues, offering advice on internal legal training, employee use of AI, and compliance in AI model training.

Key Legal Developments in AI

1. AI Litigation: The year saw a surge in lawsuits, particularly focusing on generative AI. Key legal questions emerged around copyright infringement and open-source software usage in AI models.
2. Patent and Copyright Offices’ Initiatives: These offices have solicited public feedback on AI-related issues, particularly regarding copyrights in AI-generated content.
3. FTC Guidance and Enforcement: The FTC has increased its oversight on AI, focusing on issues like biometric information use, discrimination, and consumer protection.
4. Executive Order On AI: The White House issued an Executive Order to promote safe AI development, covering aspects like safety testing, content authentication, and privacy.
5. State and Federal AI Legislation: Various states have proposed AI legislation, focusing on consumer protection and industry impacts, while the federal government is contemplating the American Data Protection and Privacy Act (ADPPA).

International Developments
The EU AI Act and the G7’s code of conduct for AI management are significant steps towards creating a comprehensive regulatory framework for AI technologies. Moreover, the Bletchley Declaration, signed by 29 countries, emphasizes global cooperation in AI safety and policy development.

Looking Ahead to 2024
As AI technology continues to advance, 2024 is expected to bring greater legal clarity on these emerging issues. The legal landscape is rapidly adapting to address the challenges posed by AI, striving to balance innovation with ethical and responsible use.

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SOURCE: Artificial Intelligence Legal Issues – 2023 Year in Review and Areas to Watch in 2024 | Sheppard Mullin Richter & Hampton LLP – JDSupra