Business Guidelines for AI

Read Time: 7 minutes

I’m not a lawyer, and I don’t play one on TV, but I do get asked by companies for advice on AI policies.

At the forefront of AI adoption are two critical issues:

1. The Accountability Conundrum: When AI-generated content goes rogue, who takes the fall? The developer? The user? Or OpenAI/Google/Microsoft?

2. The Copyright Labyrinth: As AI systems devour vast troves of data to fuel their creative engines, we’re left grappling with a fundamental question: Where does inspiration end and infringement begin?

These are not just abstract legal puzzles—they’re the frontline challenges facing every organization using AI.

Let’s dig in.👇🏼

Who’s the Culprit: A Multi-Faceted Dilemma 🤔

When AI produces harmful or misleading content, pinpointing responsibility becomes complex.

Is the AI developer at fault?

The LLM/AI organization?

Or does the buck stop with the end-user?

Right now, the answer isn’t black and white, it’s influenced by:

1. The degree of human oversight in AI operations;

2. The specific context and application of AI-generated content; and

3. Proactive measures implemented to forestall and mitigate potential harm.

Easy steps to Protect Your Organization Against AI Liabilities ✔️

To safeguard your organization and champion responsible AI, here’s what I recommend:

1. Craft and enforce crystal-clear AI usage policies

2. Implement clear review and QA processes for all AI outputs

3. Cultivate an AI-ethical culture through comprehensive training

4. Maintain clear records of AI decision-making processes

5. Explore liability insurance options to mitigate risk

6. Only use paid tools from proven providers

The Big One: Copyright – AI and Intellectual Property😬

AI on Trial

The AI industry finds itself in a maelstrom of copyright infringement lawsuits, from image generation to music usage…

• Alter v. OpenAI: A David vs. Goliath battle as authors challenge tech giants over AI training practices

• Andersen v. Stability AI: Visual artists unite against AI image generation tools

• Media Titans vs. AI Upstarts: The New York Times leads the charge against AI’s use of copyrighted content

• Melody vs. Machine: Music publishers take on Anthropic over AI’s music usage

• Code Wars: GitHub, Microsoft, and OpenAI face allegations of copyright infringement in AI coding tools

• Getty’s Stand: The stock photo giant squares off against Stability AI over image rights

‘Fair Use’: AI’s Legal Lifeline or Loophole?

The Supreme Court’s fair use doctrine, designed to “promote the Progress of Science and useful Arts,” offers a potential shield for AI.

But as technology continues to outpace legislation, the application of fair use to AI-generated content remains a legal quagmire.

Consider these scenarios:

1. When AI creates Star Wars-inspired art, is it fair use or flagrant infringement?

2. Are generative AI tools mere instruments, with users bearing full legal responsibility?

PLATFORM AI Jargon, Decoded 🧩

Here’s what you need to know about your business (consumer terms differ) rights in each AI Platform:

• OpenAI: The user is assigned rights to the output. “As between you and OpenAI, and to the extent permitted by applicable law, you (a) retain all ownership rights in Input and (b) own all Output. We hereby assign to you all our right, title, and interest, if any, in and to Output.”

• Microsoft: The user retains ownership to any output. “Output Content is Customer Data. Microsoft does not own Customer’s Output Content.”

• GitHub: The user retains ownership of its code. “GitHub does not own Suggestions. You retain ownership of Your Code.”

• Anthropic: The user is assigned rights to the output. “Customer Content. As between the parties and to the extent permitted by applicable law, Anthropic agrees that Customer owns all Outputs, and disclaims any rights it receives to the Customer Content under these Terms. Anthropic does not anticipate obtaining any rights in Customer Content under these Terms. Subject to Customer’s compliance with these Terms, Anthropic hereby assigns to Customer its right, title and interest (if any) in and to Outputs.”

• Grok: The user retains ownership of the output. “As between the user and Grok, all ownership rights to the Output are retained by the user, subject to applicable law.”

• Meta: The user retains ownership of the generated output. “Meta assigns ownership of the AI-generated output to the user, ensuring that users retain control over their content.”

Charting Your Course Through Choppy Legal Waters 🌊

As the legal landscape surrounding AI and copyright continues to shift, organizations need a checklist:

1. Maintain awareness of evolving case law and precedents in your vertical

2. Proactively secure licenses for copyrighted materials used in AI training

3. Establish no jargon policies governing AI-generated content usage for your team

4. Pay lawyers in AI and IP law to help navigate the law in your state/country

Our Path Forward: Embracing Innovation While Mitigating Risk 🌅

As someone who helps businesses navigate AI implementation every day, I've learned that success comes down to having clear processes in place. Here's what actually works:

• Create a simple QA checklist for AI outputs - my students at UNH use a 3-point system: accuracy, attribution, and appropriateness

• Document your AI usage policies in plain English (not legalese!) so your whole team understands them

• Start small, test thoroughly, and scale what works

• Minimize legal exposure by using paid accounts from proven providers and if your worried get insurance for your exposure

• Foster a culture of responsible innovation and ethical AI use as the lines keep moving so talking it out is critical

• Be your industry leaders as your vertical matters. What works for MTV won’t fly for Mass General Hospital ⚖️

The AI revolution is here to stay and the lawyers come with it.

Google just purchased nuclear plants to power its AI. There is no going back.

By addressing these issues head-on, organizations can harness the power of AI to drive growth and innovation while keeping the lawyers away.

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