AI Counsel Blog Posts
Why Gen AI Gets it Wrong
by Zachary Barlow
July 23, 2025
We’ve all heard stories of AI getting critical facts wrong in high-stakes scenarios. From airline deals that don’t exist to court filings with fake citations, it’s common to see AI fall short. Why is it that gen AI can’t get the facts right? Even after multiple rounds of prompting and asking it to “check its […]
Lender Faces $2.5 Million Settlement for Algorithmic Discrimination
by Zachary Barlow
July 22, 2025
Algorithmic discrimination is a major risk of automated decision-making systems. We’ve seen these risks manifest internally with AI-driven hiring platforms. While HR remains a major risk area for algorithmic discrimination, the risk doesn’t stop there. Algorithmic discrimination can impact how companies serve their clients, and importantly, which clients companies choose to serve. This is particularly […]
The Board’s Role in AI Governance
by Zachary Barlow
July 21, 2025
We often discuss the importance of good governance for managing AI use and adoption. Board oversight is a critical element of good governance. The board oversees company strategy at a high level, but remains removed from day-to-day management. This puts boards in a position to spot risks and opportunities and provide valuable insights. With many […]
EU AI Act: EC Publishes Code of Practice for General-Purpose AI Models
by John Jenkins
July 17, 2025
Earlier this month, the European Commission issued its General-Purpose AI Code of Practice (the “AI Code”). The EU AI Act’s provisions relating to general-purpose AI models under the EU AI Act are due to come into effect at the end of this month. Compliance with the AI Code is voluntary but can help a company […]
The One Big Beautiful Bill Act’s Implications for AI
by John Jenkins
July 16, 2025
This Ropes & Gray memo highlights the One Big Beautiful Bill Act’s implications for AI & the tech sector. Here’s an excerpt addressing some of the new restrictions on foreign involvement in federally supported AI and tech-related projects: The bill establishes sweeping restrictions on the involvement of “prohibited foreign entities” in federally supported AI, clean […]
Data Export Control Rule: DOJ’s Enforcement Challenges
by John Jenkins
July 15, 2025
As Zach blogged last week, the 90-day grace period for the DOJ’s Data Security Program (DSP) under the Data Export Control Rule expired on July 9th, but this recent Cleary memo points out that the DOJ has some challenges to deal with when it comes to investigating potential violations of the DSP and bringing enforcement […]
AI Regulation: An FAA for Artificial Intelligence?
by John Jenkins
July 14, 2025
We’ve focused quite a bit on identifying and managing the risks of AI, and although states continue to adopt laws and regulations intended to address some of the dangers of AI, the Trump administration hasn’t shown any interest in a federal regulatory scheme. This lack of interest reflects the administration’s desire to promote AI, as […]
Companies Urge EU to Pause AI Act
by Zachary Barlow
July 10, 2025
The EU AI Act is a first-of-its-kind AI regulatory framework. Passed in March 2024, the act regulates how AI developers can develop and deploy AI models across the EU. While some provisions of the act have already gone into effect, others are set to phase in this August. However, the European business community is urging […]
DOJ Data Export Control Rule Enforcement Effective Today
by Zachary Barlow
July 9, 2025
The Department of Justice’s new data export control rule introduces restrictions on data transfers to certain countries and persons. The rule originally went into effect on April 8, followed shortly by an enforcement pause for those engaging in “good faith efforts” to comply. That pause is over as of today, July 9, and now the […]
State AI Regulation Ban Dropped From Federal Budget Bill
by Zachary Barlow
July 8, 2025
Last month, I wrote about the House’s proposed state AI regulation ban in their draft of the budget reconciliation bill. The ban, designed to prohibit states from regulating AI for ten years, failed to make the final cut of the bill. This came after several rounds of negotiations sought to make the ban more palatable […]