Artificial Intelligence

OVERVIEW

Leading the way in artificial intelligence law

Artificial intelligence is revolutionizing industries and creating new business opportunities at an unprecedented pace. However, as AI continues to evolve, it introduces complex legal, regulatory, and ethical challenges. Companies developing or adopting generative AI platforms and applications, machine learning algorithms, large language models (LLMs), and other AI technology must navigate an intricate web of compliance requirements, intellectual property considerations, liability risks, and cybersecurity and data privacy regulations. Whether it’s ensuring compliance with emerging global AI laws, protecting AI-generated content, or addressing algorithmic fairness concerns, businesses need a legal partner that understands the intricacies of AI innovation.

Dunlap Bennett & Ludwig is at on the cutting edge of AI law, guiding companies, developers, investors, and AI users across the full spectrum of AI-related legal and regulatory issues. Our multidisciplinary team provides deep subject-matter expertise and practical business solutions to help clients leverage AI while minimizing risk. We also actively engage in policy discussions and industry events to help shape the future legal landscape of artificial intelligence.

Our experience in artificial intelligence law

AI presents boundless opportunities, but businesses must also be prepared for the regulatory, ethical, and legal challenges it brings. Dunlap Bennett & Ludwig helps companies harness AI’s potential while mitigating legal risks. Whether you are developing, investing in, or implementing AI technology, our firm provides the strategic legal counsel needed to succeed in the evolving AI landscape.

We work with clients across industries to manage the legal and business implications of AI adoption. Our attorneys bring a comprehensive approach, drawing from expertise in intellectual property, data privacy, cybersecurity, technology transactions, and regulatory compliance, to support businesses at every stage of AI development and commercialization. For example, our law firm helps clients navigate AI-related compliance challenges, including emerging laws such as the Federal Trade Commission’s AI guidance, the EU Artificial Intelligence Act, and evolving U.S. state regulations. Our firm also provides strategic counsel on AI-generated intellectual property protection, licensing agreements, and AI-driven business models.

Our trial and appellate attorneys are also at the forefront of AI litigation, representing clients in intellectual property disputes, regulatory investigations, and contract disagreements involving AI technology. Our corporate team assists in structuring AI partnerships, M&A transactions, and investments, ensuring AI-related transactions align with legal best practices and risk management strategies.

What we do

Provide counsel on evolving AI regulations, including global AI laws, FTC guidance, and sector-specific AI rules
Assist businesses in developing AI governance frameworks to align with ethical and legal best practices
Conduct AI risk assessments to identify potential regulatory concerns and compliance gaps
Guide clients through AI-specific export control regulations and cross-border compliance challenges

Protect AI-driven inventions through patent filings and intellectual property strategies
Advise on ownership rights for AI-generated content and machine learning models
Assist in licensing, open-source compliance, and AI software commercialization
Navigate trade secret protections for AI algorithms, datasets, and proprietary technology

Structure AI-related agreements, including development, licensing, SaaS, and joint venture contracts
Conduct due diligence for AI investments, mergers, and acquisitions
Advise on AI technology procurement, vendor negotiations, and commercialization strategies
Help businesses integrate AI into existing legal and corporate frameworks

Counsel clients on liability risks associated with AI decision-making and automated processes
Develop strategies to address AI bias, fairness, and algorithmic transparency concerns
Advise on AI-related cybersecurity risks and data protection strategies
Provide guidance on AI insurance coverage and risk assessments

Ensure AI systems comply with data privacy laws, including the EU General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and emerging AI-specific regulations
Guide businesses in anonymization, deidentification, and ethical AI data usage
Advise on AI-driven data collection and the legal risks of predictive analytics
Assist in navigating global data transfer restrictions related to AI applications

Help businesses align AI applications with ethical best practices and responsible AI use policies
Conduct AI bias audits and risk mitigation strategies to address algorithmic fairness concerns
Develop transparency and accountability frameworks for AI governance
Advise on AI-related environmental, social, and governance (ESG) considerations
Consult on industry-specific AI applications
- Healthcare and life sciences: AI-driven diagnostics, medical devices, and Food and Drug Administration regulatory compliance
- Financial services: AI in fraud detection, algorithmic trading, and banking regulations
- Defense and aerospace: AI in autonomous systems, export controls, and national security compliance
- Retail and eCommerce: AI-driven personalized marketing, automation, and consumer data regulations
- Manufacturing and supply chain: AI for predictive analytics, operational efficiency, and logistics automation

Blockchain and AI convergence: Smart contracts, fraud detection, and secure automation
Quantum computing and AI: Preparing for AI’s role in quantum advancements
Internet of Things (IoT) and AI integration: Regulatory implications of smart devices and AI-driven automation

Flag legal concerns around AI-driven hiring, worker surveillance, and bias in human resources decisions
Ensure compliance with laws like the New York City AI hiring law and Equal Employment Opportunity Commission (EEOC) guidance on AI in recruitment

Monitor how AI regulations are shaping public sector adoption
Advise on AI’s role in government decision-making, transparency, and accountability

Develop licensing models for AI software and datasets
Structure royalty and subscription-based AI revenue models

Counsel clients on liability risks associated with AI decision-making and automated processes
Develop strategies to address AI bias, fairness, and algorithmic transparency concerns
Advise on AI-related cybersecurity risks and data protection strategies
Provide guidance on AI insurance coverage and risk assessments

Advise on compliance with the AI Act in the EU and AI compliance frameworks in Asia, Canada, and Latin America
Help businesses address AI-related trade restrictions and cross-border data laws

Represent clients in disputes involving AI-related intellectual property, licensing, and unfair competition matters
Defend businesses against regulatory enforcement actions involving AI compliance issues
Provide litigation support for AI liability claims, contract disputes, and data privacy violations
Assist clients in navigating the legal challenges of AI-driven decision-making

Frequently Asked Questions

Do I need an AI-specific lawyer, or can my regular business counsel handle this?

Most AI questions span several areas of law, including intellectual property, privacy, contracts, employment, and regulatory compliance. For example, if you train a model on data you don’t have rights to, you’ve created exposure in all five areas. A product decision that appears to raise a narrow data issue may also affect vendor obligations, customer representations, and potential liability. AI attorney will assess those connected risks and work alongside a company’s existing counsel, focusing on the legal issues specific to its use of AI.

Can AI-generated content or inventions be protected by copyright or patent?

Sometimes, but protection depends on the human contribution. Copyright may protect human-authored content included in or added to AI-generated material. However, copyright protection doesn’t extend to material that AI generates entirely on its own. Similarly, an AI system can’t be named as an inventor, although an invention developed with AI assistance may qualify for patent protection if a human qualifies as an inventor under ordinary patent-law standards. What usually decides the case is whether the company contemporaneously documented who did what and when they did it. Reconstructing what happened two years afterward in response to a demand letter rarely goes well.

What AI regulations apply to my business right now?

That turns on where your company operates, what your system does, whom it affects, and how you develop or use your system. For example, the European Union’s AI Act applies to companies that offer AI systems in the EU or if their systems produce output used there, regardless of their location. In the U.S., the FTC may pursue enforcement actions for unfair or deceptive AI practices, while states are adopting AI-specific laws to complement their existing privacy, consumer protection, civil rights, and industry-specific requirements. Legal counsel experienced in AI will help you identify which rules govern your system and use case and what compliance measures those rules require.

We want to use a third-party AI tool in our business. What should we consider before signing?

Review four questions before signing: (1) Who owns the information you enter and the content the tool creates? (2) What can the vendor do with your data, including retaining it, sharing it, or using it to train its models? (3) What does the vendor promise about the tool’s accuracy and security, and how quickly must it notify you of a data breach? (4) Who bears the legal and financial responsibility if the tool fails or causes harm? Also examine your right to verify the vendor’s compliance, any indemnification obligations, liability limits, and what happens to your data when the relationship ends. Many enterprise terms are negotiable, so don’t assume the vendor’s standard agreement is final.

How do we address bias or fairness concerns in an AI system?

Identify where the system makes or influences decisions about people and what laws apply to those decisions. Depending on the use case, you may need to evaluate your data, test for disparate outcomes, notify people when you are using AI, explain how the system influenced a decision, establish human oversight, and document what you found and how you addressed any identified risks. The AI systems at greatest risk for scrutiny tend to be those that affect hiring, lending, housing, and healthcare. An attorney can help you demonstrate the transparency, defensibility, and accountability that regulators expect by running AI bias audits and drafting policies and other documentation.

What happens if my company is sued or investigated over an AI system?

The trial and appellate attorneys at Dunlap Bennett & Ludwig handle all manner of AI-related disputes, from matters involving intellectual property to privacy, regulatory enforcement, and litigation arising when AI systems allegedly cause harm. Early decisions can have unexpected, significant impacts on a lawsuit, including how you preserve evidence, communicate with regulators or opposing parties, and explain how you develop and use your system. Given the stakes, it’s best to talk to experienced legal counsel before you respond to a demand letter, subpoena, civil investigative demand, or regulatory inquiry.

Can we use third-party data to train or improve an AI model?

The answer depends on where the data came from and what rights you have to use that data. Your collection and use of data is subject to copyright, license terms, privacy laws, trade secret protections, and website terms. The answer may also change depending on whether you use the data to train a commercial model, test a system, or generate outputs for customers. An attorney will evaluate your data sources and help you obtain the necessary rights.

Does our company need an internal AI policy?

Yes. Most companies that allow employees to use AI should have one. Your policy should identify approved tools, explain what information employees may enter into the system, require appropriate review of AI-created work, and prohibit uses that create unacceptable legal or business risk. It should also make clear who takes responsibility for decisions involving AI. The right policy will reflect how your employees use the technology and not be so restrictive that everyone ignores it.

What should investors or buyers examine when evaluating an AI company?

Confirm that the company owns or licenses the models, software, training data, and other technology its business depends on. Then examine how it protects personal and confidential information, tests its systems, describes their performance, and complies with applicable laws. Investors and buyers should also understand the company’s reliance on outside model providers and other vendors. Weak data rights, unsupported accuracy claims, or a vendor relationship that can end without warning may affect your company’s value and put the transaction at risk.

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