Your Business Needs to Track Evolving Artificial Intelligence Regulations

What are your state’s laws surrounding the use of artificial intelligence? Are you aware of both the federal and state changes that have occurred in the last few months?

We suspect many of you reading this aren’t able to confidently and comfortably answer either of those questions—and we get it. The use of AI has exploded over the last year, creating concern about how these AI models are trained and implemented.

As more people incorporate AI into their daily lives, businesses need to be proactive about the growing body of regulations around AI use. Laws are rapidly evolving, and it’s crucial for companies using AI to stay compliant, as the government tends to make examples of early violators. Working with an attorney who understands these laws is no longer a suggestion; it’s a business necessity.

California & Colorado Pass Comprehensive AI Regulations

In 2024, Colorado and California set the pace for AI regulations, passing two comprehensive laws that focus on risk mitigation and accountability for companies developing or using AI models.

Colorado passed SB 205, known as the Consumer Protections for Artificial Intelligence. This law calls for robust risk assessments and strategies to address those risks. The Consumer Protections for Artificial Intelligence is the state’s first comprehensive AI regulation, and it focuses on how companies that develop or implement AI systems are responsible for ensuring the models behave as intended. The law also requires that these businesses continuously evaluate their AI systems to prevent unintended outcomes or harmful consequences.

California’s SB 1047, the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, mirrors much of the text from Colorado’s bill and includes language requiring companies involved in AI development to rigorously assess the risks posed by their AI models. The law mandates that businesses take appropriate action to mitigate risks associated with bias, misuse, or even the possibility of their AI systems being repurposed for harmful applications. SB 1047 positions California as one of the first states to ensure AI development follows strict guidelines that prioritize user safety and security.

These are just a few of the state laws we’ve seen over the last few months. The National Conference of State Legislatures has a great resource to see if your state has implemented any AI bills.

Federal Laws Intended to Protect Against Duplicates and Fakes

At the federal level, AI regulations are also gaining ground. The No FAKES Act specifically addresses the growing issue of deepfakes. Deepfake technology has the potential to create convincing fake content, whether images, audio, or video. While the technology itself has legitimate uses, it also raises concerns over copyright violations, identity theft, and misinformation. The No FAKES Act aims to curb the misuse of deepfakes by prohibiting the unauthorized use of AI-generated replicas of real people in advertising or commercial settings. This law provides a crucial safeguard for individuals who are often unaware that their likeness could be used without consent.

The U.S. Copyright Office Report on Copyright and Artificial Intelligence, Part 1: Digital Replicas is another important update to follow. This report is one of the first detailed explorations by the U.S. government into how AI intersects with copyright law. It focuses on the challenge of protecting intellectual property rights when AI can replicate and even enhance copyrighted works. Companies using AI must now be even more cautious about how their models interact with copyrighted material, particularly when generating digital replicas that could violate copyright protections.

Federal laws (and international ones like the EU AI Act) are starting to reflect the broader understanding of AI’s potential and the need for protective measures. However, this is just the beginning. As AI technology advances, so too will the laws that govern it.

Keep Up with Evolving AI Laws with CLARK.LAW

Staying compliant with AI regulations requires attention to detail and legal know-how. Keeping up with these while implementing AI is a fantastic way for smart businesses to elevate their presence.

Laws like those in California and Colorado are just part of an ongoing wave of AI laws and regulations. CLARK.LAW can help you understand and implement any changes related to these regulations with ease and ensure that your business remains compliant in the face of new laws. Contact our team to discuss how these changes impact your operations and what steps you can take to stay ahead of regulatory developments.

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