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Corporate legal departments are increasingly receiving requests from business clients to use ChatGPT or similar AI-powered tools in their operations. These requests can be urgent, with business clients demanding enablement from legal. This article is in two parts: Part One briefly details what "generative AI" tools like ChatGPT are and provides an overview of key legal considerations, including by looking forward to upcoming AI-specific legislation in the EU and the U.S.; and Part Two, coming next month, will outline potential ways for corporate counsel to think about enabling engagement with this new technology.
|ChatGPT is one of a suite of AI-powered technologies that is being dubbed "generative AI." These are tools that can take a prompt or query from a user (the "input") and respond to it with a type of "output" that resembles what a human would create. These tools are referred to as "generative" because they do not rely on a database of preformulated answers or responses that they can retrieve to address user input. Instead, they have been trained to "recognize" a user's input and to "generate" a response entirely on their own.
Some of the more well-known examples of generative AI include:
|Generative AI tools are not restricted to any particular use case. But requests to corporate legal departments seem to be presently coalescing around several specific use cases:
|While business clients may be seeing benefits from using generative AI, corporate counsel tends to focus on legal risks that may arise from permitting enterprise use. The risks of generative AI are still being discovered, so this advisory cannot present an exhaustive, closed-ended list of considerations that may be relevant to counsel. At present, however, reporting has identified several relevant considerations. Some of the more salient are:
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