Hot Topics: AI and ESG

Skadden, Arps, Slate, Meagher & Flom LLP

The US Government Is Using AI To Detect Potential Wrongdoing, and Companies Should Too
With agencies such as the SEC and DOJ using AI and other data analytics tools extensively to detect wrongdoing, companies need to adopt the new technology to identify high-risk activities and spot possible misconduct.

The Meteoric Rise of Generative AI Has Regulators Gearing Up To Preserve Competition
U.S., U.K. and EC antitrust regulators are closely watching how the AI sector evolves, scrutinizing partnerships with large tech companies and other actions for signs they might restrict competition or further increase concentration.

Employers Offering DEI Training Need To Monitor Both Pro- and Anti-DEI Court Challenges and Legislative Proposals
A wave of court challenges to mandatory DEI training programs, together with new state laws — some restricting such initiatives — may signal the rise of new contested issues. Private employers should constantly reassess their DEI programs.

Corporate Boards Face ESG Pressure From Both the Left and Right
Both ESG advocates and opponents have tried to gain legal leverage via corporate boards, but courts have declined to second-guess directors’ decisions about ESG policies, saying boards have wide latitude under the business judgment rule.

HKEx Moves Forward With Diversity, Climate and Sustainability Initiatives
HKEx has introduced a range of ESG initiatives, including regarding board diversity, global standard climate reporting and the introduction of a paperless regime for shareholder communications.

See all of Insights Special Edition: Women’s History Month – March 2024

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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