By: Steve Moloney – Security Multipliers and Jason Barrett – JAME Consulting

With commentary by the law firm of Patterson + Sheridan

Artificial intelligence (AI) has become one of the most transformative technologies of the modern age, with far-reaching implications across various industries. As AI evolves and matures, it increasingly becomes an integral part of our daily lives, touching virtually every aspect of society. From healthcare to finance, education to transportation, AI drives innovation, improves efficiency, and creates new opportunities. However, as the use of AI becomes more widespread, there are growing concerns about its impact on data privacy,  intellectual property protection and elsewhere in the workplace. In this article, we will explore some of the critical implications of AI on data privacy and intellectual property, as well as some strategies that can be used to address these challenges.

Data Privacy and AI

Data privacy has become a critical issue in recent years, with a growing number of high-profile data breaches and leaks that have exposed sensitive personal information. AI is not immune to these concerns, as it relies heavily on data to train its algorithms and make predictions. However, using AI introduces new challenges to data privacy, particularly when it comes to collecting and processing large amounts of data including the personal information of employees.

One of the primary concerns with AI and data privacy is the potential for algorithmic bias. AI algorithms are only as good as the data they are trained on, and if that data is biased or incomplete, the algorithm will reflect those biases. This can result in unfair, inaccurate  or discriminatory outcomes, particularly in hiring, lending, and criminal justice areas. In addition, AI can make inferences about individuals based on their data, which could reveal sensitive information about their health, finances, or personal life.  Case in point, the Equal Opportunity Employment Commission (EEOC) listed the use of AI as one of their top priorities of focus in their 2023 to 2027 Strategic Plan with their main concern being that AI recruiting and pre-hiring tools may exclude adversely impacted groups of employees in protected categories (race, color, gender, religion, sex, etc.)

To address these concerns, many countries and US states have introduced data privacy regulations, such as the EU’s General Data Protection Regulation (GDPR), California’s Consumer Privacy Act (CCPA) and similar laws in Colorado, Connecticut, Utah and Virginia. These regulations impose strict requirements on the collection, processing, and storage of personal data and the use of AI and machine learning that can impact automated decision making. In addition, companies that use AI must be transparent about their data practices and provide individuals with clear information about how their data is being used, processed and transferred.

Another strategy for addressing data privacy concerns is using privacy-preserving AI techniques, such as differential privacy and federated learning. Differential privacy involves adding noise to the data to protect individual privacy and prevent memorization while allowing for valuable insights to still be gleaned from the data. Federated learning involves training an AI model on data that may be  distributed across multiple devices without the need to centralize the data (which might put the data more at risk). This can help to protect individual privacy, while still allowing for the benefits of AI to be realized.

Intellectual Property and AI

Intellectual property protection is another area impacted by the rise of AI. As AI becomes more capable, it is increasingly being used to create new works of art, music, and literature and generate new inventions and innovations.  Chad Dougherty and Mitchel Jones of the IP law firm of Patterson Sheridan provide examples, “ChatGPT, and similar AI-based alternatives, compose complex prose based on simple prompts or questions. The creative expression of the prose gives rise to potential copyright issues, while the technical content of the prose may be presented in a new and non-obvious manner that could qualify as patentable subject matter.” This raises complex questions about who owns the intellectual property rights to these creations.

One of the primary challenges with AI and intellectual property is the issue of authorship. Traditional copyright law is based on the concept of a human author, but with AI-generated works, it is often unclear who the author is. For example, if an AI system generates a piece of music, who owns the copyright to that music? Is it the programmer who wrote the code, the company that owns the AI system, or the AI system itself?

Another challenge is the potential for AI to infringe on existing intellectual property rights. For example, if an AI system is trained on a copyrighted work, it may generate a new work that is too similar to the original, potentially infringing on the copyright. Similarly, if an AI system is used to create a new invention, it may unknowingly infringe on existing patents.  “It raises the question whether AI can be held liable for infringement, and if so, how damages can be recovered from an AI system” said Dougherty and Jones.

To address these challenges, there have been calls for new laws and regulations to be put in place to better clarify the ownership and protection of intellectual property in the age of AI. Some experts have suggested that AI systems should be treated as legal entities with their own rights and responsibilities. Others have proposed the creation of a new category of intellectual property, such as “AI-generated works,” which would be subject to its own set of rules and regulations.

In addition, there are also technical solutions that can be used to address these challenges. For example, some AI systems can be designed to provide attribution for the works they create or to include specific language in their outputs to indicate that they are AI-generated. Similarly, there are AI systems that can be used to detect potential copyright infringement or to identify existing patents that may be relevant to a new invention.

Overall, the implications of AI on data privacy, intellectual property and generally in the workplace are complex and multifaceted. While AI has the potential to revolutionize many aspects of society, it also introduces new challenges and risks that must be addressed. Data privacy, recruiting/hiring and intellectual property protection are three areas that are particularly important to consider, as they have significant implications for individuals, companies, and society as a whole. By implementing a combination of legal, technical, and ethical strategies, we can ensure that the benefits of AI are realized while minimizing its potential risks and negative consequences.

Strategies such as privacy-preserving AI techniques, data privacy regulations, and technical solutions for intellectual property protection can help minimize AI’s potential negative impacts while maximizing its benefits. Additionally, ongoing discussions and debates about the ethical implications of AI are essential to ensure that the technology is developed and deployed in an ethical, responsible, and sustainable way. By working together, we can harness the power of AI to create a better future for all.

Recommendations:

• Engage your employees and consider creating collaborative, cross-functional teams to brainstorm effective and safe ways to use AI;
• Review existing policies and create new ones to properly incorporate the use of AI engines, like ChatGPT.   If you look in the news, many companies are blocking it but that will only work for so long.
• Seek out industry experts in cybersecurity, corporate governance and/or legal compliance to assist with managing this ever-expanding technology.

If you are need of advice on the issues, challenges and recommendations raised in this article, please feel free to contact JAME Consulting, LLC:

Email: info@jameconsulting.com

Website: www.jameconsulting.com

Phone: 832-328-3301

For any legal advice on IP matters, consider contacting Patterson + Sheridan:

Email: info@pattersonsheridan.com

Website: www.pattersonsheridan.com

Phone: 713-577-4812