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AI Risks and Opportunities
Every company deploying AI is making legal decisions, whether or not they know it. The training data used, the hiring decisions the system influenced, the statements made to investors about AI capabilities, the vendor terms signed without reading — all of these carry legal implications. Some of them are currently creating liability.
The EU AI Act took effect in 2024 and is being phased in through 2027. It classifies AI systems by risk level and imposes compliance obligations ranging from transparency disclosures for low-risk systems to outright prohibition of certain high-risk uses — and it applies to any company affecting EU residents regardless of where the company is headquartered. US regulators including the FTC, EEOC, CFPB, and sector-specific agencies have issued AI guidance and enforcement actions. State legislatures in Texas, Colorado, California, Illinois, and others have passed or are considering AI-specific laws. The compliance landscape is fragmented, moving quickly, and increasingly enforced.
AI Risks. AI Rewards.
AI systems trained on historical data encode historical biases. An automated hiring tool that screens out certain demographic groups, a lending algorithm that produces disparate impact on protected classes, a medical AI that performs less accurately for underrepresented populations — these create civil rights liability regardless of whether the bias was intentional. The fact that a machine made the decision provides no protection.
The IP status of AI-generated content remains unsettled. The Copyright Office has consistently refused to register purely AI-generated works without meaningful human authorship. Training AI on copyrighted data is the subject of active litigation. Companies building products on AI-generated content face real questions about protectability and ownership that don’t yet have definitive answers.
Public companies now face SEC disclosure requirements for material AI-related risks. Healthcare organizations using AI face FDA and CMS requirements. Some state laws require disclosure when AI is used in consumer-facing decisions. Getting the disclosure right requires understanding both what the AI is actually doing and what the applicable legal standard demands.
Our IP Practice Areas
Risk Audits
Identify hidden vulnerabilities before they become costly issues. Our risk audits help safeguard your business with proactive strategies.
Whistleblower Liability Audit
Identify and mitigate risks related to whistleblower claims before they escalate. We help ensure your policies and practices meet legal and ethical standards.
Our Process
For every legal risk AI creates, it also creates protectable competitive advantage. AI-implemented inventions are patentable. Proprietary AI workflows can be trade secrets. Companies that build strong AI IP positions early will have leverage over competitors who deploy similar technology later.
Cameron Powell has practiced at the intersection of AI, IP, and business law throughout his career. We advise on AI compliance programs, AI-related IP strategy, AI contract provisions, regulatory response, and AI-related litigation risk. We work in Texas, DC, Colorado, and California, with affiliated counsel nationally. Related: AI Risk Audits · AI Opportunity Assessments · CISO Liability
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Protection & Enforcement
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