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AI may soon inspire a new wave of business litigation

On Behalf of | Mar 11, 2024 | Business & Commercial Law |

The integration of artificial intelligence (AI) into many aspects of various kinds of business operations is transforming industries, driving innovation and reshaping competitive landscapes. Yet, as companies increasingly rely on AI for data analysis, decision-making, customer service and more, the potential for AI to inspire a new wave of business litigation is becoming more apparent. 

Several factors are contributing to this concern, necessitating a forward-looking approach for businesses interested in navigating potential legal challenges as proactively and effectively as possible.

Intellectual property disputes

AI’s ability to create content, analyze data and otherwise capitalize on groundwork laid by human efforts raises significant intellectual property (IP) questions. As AI systems produce outputs that might resemble existing copyrighted materials or invent new products and processes, disputes over the ownership and infringement of IP rights are likely to increase. Determining whether creations by AI constitute original work protected by copyright or patent laws will be a central issue in many of these disputes.

Contractual issues and liability

The use of AI in executing contracts, making purchasing decisions or managing supply chains may inspire legal complexities that could affect contractual obligations and liability. Disagreements may arise over AI’s interpretation of contract terms or its decision-making process, leading to litigation over breaches of contract. Additionally, when AI systems cause financial loss or other damages, attributing liability—whether to the AI developers, the user company or another party—could be contentious.

These are just a few of the most obvious ways that emerging AI could soon result in significant headaches for businesses, which could evolve into scenarios that require litigated resolutions. Given these potential legal challenges, businesses should do what they can to proactively address the legal implications of integrating AI into their operations. Seeking legal guidance is a good way to get started.