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Algorithmic Disgorgement: Understanding AI’s “Death Penalty”

by John Jenkins

February 10, 2025

A recent Risk Management Magazine article notes that companies that train AI tools on consumer data collected without proper consent can face significant penalties from regulators. These penalties include “algorithmic disgorgement,” in which companies are compelled to delete specific datasets used to train AI models and, potentially, to delete the algorithm underpinning a key service.  […]

DOJ Publishes New Data Export Control Rules

by Zachary Barlow

February 6, 2025

The Department of Justice (DOJ) published new final rules in January that introduced compliance obligations for transferring sensitive data to foreign persons. Broadly, the rules prohibit any data brokerage of sensitive data with persons associated with certain countries of concern, including China. A recent memo from Wilson Sonsini provides easy steps for determining if your […]

Copyright Office Report Rejects New Protections for AI-Generated Content

by Zachary Barlow

February 5, 2025

Generative AI models have pushed the boundaries of existing Intellectual Property (IP) laws. AI IP issues generally fall into two camps, the IP rights attached to training data and the IP rights of AI-generated content. We’ve covered several developments related to the former, but the latter is equally important. The U.S. Copyright Office recently published […]

First Portions of EU AI Act Take Effect

by Zachary Barlow

February 4, 2025

The first phase of the EU’s new AI legislation takes effect this month and bans certain AI systems from EU markets. This ban is the first in a series of phased-in obligations leading to full implementation by August 2026. The ban prohibits eight types of AI systems. The EU found that these systems are discriminatory, […]

New Administration Orders AI Policy Plan

by Zachary Barlow

February 3, 2025

A couple of weeks ago I wrote about the Trump administration’s revocation of Biden’s executive order on AI development. Now the new administration has issued its own executive order which outlines a timeline for further policy developments. A recent memo from Davis Polk outlines the contents of the order: “Among other things, President Trump’s AI […]

Commerce Dept. Issues New Export Restrictions on AI Technology

by John Jenkins

January 30, 2025

During the Biden administration’s waning days, the Commerce Department issued a new rule imposing significant new restrictions on the export of advanced AI technologies and model weights.  This excerpt from Dentons’ memo on the new rule provides some specifics on the technologies that are restricted: Amongst other requirements, the new rule requires a license to […]

Cybersecurity: Four Ways to Build Cyber Resilience

by John Jenkins

January 29, 2025

A recent Aon report highlights how the rapid development of AI has led to equally rapid changes in the insurance risk landscape. Risk profiles traditionally focused on tangible assets such as property and equipment, but the increasing value of intangibles, including AI algorithms and data, requires a shift in how risks are assessed and managed.  […]

Applying an Enterprise Risk Management Approach to AI & EmTech Risks

by John Jenkins

January 28, 2025

This Mayer Brown memo discusses some of the key risks associated with AI and other emerging technologies and calls for companies to adopt an enterprise risk management mindset to approaching these risks.  The memo identifies a number of “best practices” that companies should adopt in order to achieve this, including the adoption of appropriate governance […]

AI Risk Management: What Not to Do

by John Jenkins

January 27, 2025

A lot of attention is paid to “best practices” when it comes to risk management.  A recent article in The CPA Journal takes the opposite approach and calls out AI risk management “worst practices.” Since the publication’s target audience is accountants, it’s not surprising that it highlights the problems associated with ignoring the financial statement […]

How to Get the Most Out of Your Cyber Insurance

by Zachary Barlow

January 23, 2025

A cyber attack can present organizations with many challenges including loss of consumer confidence and disruption to daily operations. Losses can mount quickly and the costs incurred by incident response vendors can impose further financial burdens. Many firms have begun offering cyber insurance to help companies protect against these losses. Some have voiced concerns and […]