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Biden’s AI Order Shows GCs That Regulators Are Watching

Law360 Pulse

Regardless of whether President Joe Biden's recent executive order on so-called safe artificial intelligence directly applies to a company, top in-house lawyers should ensure they have a formal policy — because federal agencies and general regulators are now closely scrutinizing business practices related to the technology.


Sharon Klein, chair of the privacy, security and data protection practice at Blank Rome LLP, said general counsel should be asking the business: Is your use of AI the right tool for the task, given the risk?

"If you're going to have regulatory scrutiny, you need to tread carefully and be able to document why the risk — the privacy/security risk assessment — indicates that this is the best thing that you can do to solve this problem," Klein said.

"I think the general counsel has to rise above and have like this, 'OK, what is the scope and is that within policies?'" said Klein, who has spent time working in-house. And if current guidelines don't cover the situation, the GC needs to "draft those policies for the organization."

She added: "To not have a policy is a really bad thing because then people will feel empowered to use whatever without restraint. You need guidelines."

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"Biden’s AI Order Shows GCs That Regulators Are Watching," by Michele Gorman was published in Law360 Pulse on November 9, 2023.