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Defining legal questions in the age of AI
As AI revolutionises the media industry, companies are confronting novel legal issues. What do you need to consider as you adopt, integrate, and invest in AI?
Reputation and defamation
Understand your responsibilities for user-generated AI content, particularly concerning defamatory, misleading, or harmful content.
Confirm you have appropriate safeguards in place for AI-moderated content.
Build awareness of your stakeholders’ attitudes toward AI use and ensure you are prepared for any potential backlash.
Prepare for litigation in relation to AI-generated content.
IP and licensing
Ensure you own the output of your AI-generated content.
Check that outputs meet the standard of originality required for copyright protection, and put strategies in place to protect assets.
Understand how licensing deals can benefit you and what contractual terms to agree with collaborators.
Determine usage rights and any limitations on the scope of use of AI-generated content.
Put in place robust monitoring processes for remixed or reproduced content. Consider how AI could assist in this effort.
Liability and commercial contracts
Determine which liability frameworks apply to AI decision-making and training.
Ensure your indemnification and warranty provisions are tailored to AI and its specific risks.
Draft AI-specific clauses in contracts to limit liability for AI-generated content and decisions made by autonomous systems.
Data privacy
Understand the implications of data privacy laws on AI’s use of personal data.
Develop processes for consent, data collection, retention, and deletion in relation to AI, ensuring compliance with data privacy laws.
Consider where the business is vulnerable to data breaches through its use of AI (especially via third parties) and be prepared to respond.
Ensure that personalisation or targeted advertising complies with privacy regulations, particularly when dealing with children.
Regulation and governance
Clarify your obligations and transparency requirements under regulatory frameworks such as the EU AI Act, and ensure compliance.
Understand the position of relevant media regulators on AI, including Ofcom and the Advertising Standards Authority, and ensure compliance with their policies.
Check your obligations regarding the handling of deepfakes.
Take proactive steps to mitigate the impact of AI bias and discrimination.
Key challenges in AI M&A
Due diligence on AI assets: Assessing the legal risks associated with AI-powered IP, data privacy compliance, and liability allocation in AI-driven transactions.
Contract structuring and risk mitigation: Addressing the unique contractual challenges posed by AI, including data ownership, liability for AI decision-making, and ethical AI usage.
Regulatory and compliance-driven deals: The upcoming enforcement of the EU AI Act and evolving global AI regulations will prompt businesses to acquire AI solutions that ensure compliance and mitigate risks.