Generative AI (GenAI) has been at the top of the headlines lately, transforming fields as varied as journalism, marketing, and gaming, boosting productivity and profitability, and performing functions previously limited to humans. Recent projections suggest that the global GenAI market will increase to over $100 billion annually by 2030. A previous Wilson Sonsini alert on GenAI covered a wide range of issues, such as breach of contract, confidentiality, copyright, ethics, European Union laws and regulations, licensing, securities laws, trade secrets, and reputational considerations. Another previous alert addressed legal requirements for mitigating bias in AI systems more generally. This alert drills down on U.S. privacy and consumer protection considerations associated specifically with GenAI.
GenAI technology tools are developed and refined by training the underlying models on large training data sets that are drawn from a number of sources, and can include personal information from employees, website visitors, customers, and public sources, potentially creating risks under U.S. privacy and consumer protection laws. This alert is focused on identifying the key U.S. privacy and consumer protection-related risks associated with the use and creation of GenAI, along with steps companies can take to mitigate these risks.
A Primer on Applicable Laws
The use of GenAI implicates various privacy and consumer protection laws and regulatory considerations. Potentially applicable legal requirements include:
With all of this activity, what should companies do? This alert provides separate guidance for companies that are using GenAI tools, and companies that are building GenAI tools.
What Should Companies Building GenAI Tools Do Now?
What Should Companies Using GenAI Tools Be Doing?
Companies that are not building GenAI tools may nonetheless want to use the services of companies providing these tools. They may want to include chatbots or GenAI-enabled search features on their own websites or online services. They may want to enable their employees to use these tools for business purposes. Or they may want to use GenAI tools to customize ads to specific people or groups. All of the same considerations discussed above will likely apply in these scenarios. Here are some additional considerations:
The legal landscape concerning GenAI is changing quickly. Companies should carefully evaluate their use of GenAI models in the context of obligations and limitations imposed by U.S. privacy and consumer protection laws and regulations. Wilson Sonsini Goodrich & Rosati routinely helps companies navigate complex privacy and data security issues. For more information or advice concerning your compliance efforts related to GenAI, please contact Maneesha Mithal, Laura De Boel, Scott McKinney, Barath Chari, Eddie Holman, Nikhil Goyal, or any member of the firm’s privacy and cybersecurity practice or artificial intelligence and machine learning working group.