Top 10 Considerations for In-House Counsel on Privacy and Data Protection Concerns with AI

Fenwick & West LLP
Contact

Fenwick & West LLP

Top 10 Considerations for In-House Counsel on Privacy and Data Protection Concerns with AI:

  1. Know your legal role: Privacy laws vary among jurisdictions, and your obligations using AI and personal information will change based on your legal role, for example in Europe whether as a processor or controller or California as a Covered Business or Service Provider.  
  2. Be transparent: Privacy policies/notices should be updated frequently with required disclosures to communicate key aspects of your organization’s AI use, especially concerning automated-decision making. 
  3. Know the source of your training data: Regulators have required destruction of AI/ML models that were built on improperly obtained data.  
  4. Understand that AI can transform non-personal information into personal information: Collective non-personal information used in AI processing could produce an output that would be considered personal information, attaching potential legal obligations. 
  5. Maintaining AI models is a continuing action: Hallucinations and/or biased outputs originating from incomplete training data or poorly designed modeling may be alleged as an unfair or deceptive business practice.  
  6. Expectations of “reasonable” security are evolving: Regulators are hiring technologists to assess and modernize duties of “reasonable” care that may evolve quicker than your product design cycle.  
  7. Implement an AI governance program: Properly conducted privacy/data protection impact assessments, subject to regulators’ guidance, are going to be the new normal prior to product/feature development.  
  8. Honor individual privacy rights: Laws will continue to provide individuals with rights such as a right to opt-out, correct or delete that may be challenging to honor given AI model constraints.  
  9. Know how to work with vendors: Depending your role in the AI ecosystem, jurisdictions may impose specific data protection obligations on you, and a software bill of materials may become a new requirement (especially if contracting with the government). 
  10. Develop internal controls and employee training: Employees/contactors may be the biggest risk to security of an AI system or the catalyst for inadvertent leakage of confidential information.  

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.

© Fenwick & West LLP | Attorney Advertising

Written by:

Fenwick & West LLP
Contact
more
less

Fenwick & West LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide