Artificial intelligence (AI) is proliferating almost every aspect of human society, from the nature of work and workforce roles to the way we do business and even how we think about intellectual property (IP). Naturally, this raises many questions on personal and professional levels far beyond matters relating to IP.

Exciting, Challenging Times

• What will be the impact of AI automation on employment, jobs, and workforce displacement? What about long-term societal implications?
• Should there be specific regulations or international standards governing the development, deployment, and ethical implications of AI?
• What role should various stakeholders, including governments, industries, researchers, and the courts play in shaping AI's future?
• What measures should be taken to enhance the cybersecurity of AI technologies?
• How can we balance the benefits of AI with the need to protect individual privacy?
• What safeguards should be in place to prevent misuse of personal data in AI applications?
• How can society strike a balance between fostering innovation while being mindful of potential risks associated with AI?
• Who should be considered the inventor/owner of IP when AI systems contribute significantly to its creation? Should IP generated by AI be subject to different standards?
• Should we be concerned that AI’s ability to reverse engineer will expose trade secrets and other proprietary information?

While uncertainties persist regarding key questions surrounding AI, one undeniable certainty is that all of us will be affected by AI. The next several years promise to involve numerous, pivotal moments as we address crucial issues. This includes weighing the delicate balance between protection and innovation, as well as the adaptation of evolving technologies and their impact on people, business, and intellectual property. Considerations will undoubtedly span ethical, social, economic, and technological dimensions of AI, underscoring the imperative for a comprehensive and thoughtful approach.

That said, let’s take a big picture view of the current state of affairs concerning various facets of AI and their impact on society.

• There’s near-universal consensus that workforces will become at least partially replaced by automated robots and AI algorithms. In fact, it’s already happening as AI’s abilities, speed, and accuracy outpace that of humans in numerous fields.
• Similarly, some aspects of national governance will be affected. AI technologies can analyze vast amounts of data quickly, helping governments use real-time information to enhance policy formulation, decision-making, efficiency, and automation.
• We also know that AI-empowered marketing systems have been gathering vast data dossiers on every aspect of our lives. With an AI assist, marketers will be able to exploit this data more and more as time goes on.
• The IMF recently released a report that suggests 40% of global employment today could be replaced by AI partially, if not fully. In their study, they found the number increases to 60% in advanced economies with more high-skilled jobs. They also predicted that wealthier countries would be better prepared to mitigate the impact of AI and job loss, but only if universal regulatory and ethical frameworks were observed by all parties. However, they deemed such a spirit of cooperation unlikely in light of many of the world’s economic and military powers currently being at odds with one another.
• US Supreme Court Chief Justice John Roberts addressed the topic of AI’s impact on the legal system in his 2023 year-end report. “Machines cannot fully replace key actors in court. Judges, for example, measure the sincerity of a defendant’s allocution at sentencing,” he wrote. “Nuance matters: much can turn on a shaking hand, a quivering voice, a change of inflection, a bead of sweat, a moment’s hesitation, a fleeting break in eye contact. And most people still trust humans more than machines to perceive and draw the right inferences from these clues.”
• While his focus was mainly on the courtroom, Justice Roberts acknowledged AI’s potential impact in the realm of legal research. He wrote that “legal research may soon be unimaginable without it.” He also expressed concerns that AI “risks invading privacy interests and dehumanizing the law.” He underlined the need for Judicial Conference Committees in the federal courts to be heavily involved in considering AI’s use in litigation.
• The fact that the global artificial intelligence market generated $433 billion dollars in sales revenue from 2020-23 means that it’s an explosive economic force that’s not likely to be held back while governments and courts figure out the rules. It’s already being embraced by marketers to varying degrees of success. As AI evolves, it’s likely that the barrage of personalized recommendations and advertising will only grow more sophisticated.
• Many consumers are simply unaware of AI’s widespread use by financial firms, including banks and credit card companies. In fact, AI has been in use for some time now to monitor and detect fraudulent transactions, saving banks, credit card companies, and ultimately consumers money and time. AI is also being used to make credit decisions and deliver customer service. However, with banks better able than ever to comb through vast amounts of financial history and spending habits, privacy issues become a concern. What kind of consent is required by consumers? How are consumers impacted if they don’t consent? What datasets can be shared between financial institutions?

To AI or Not To AI?

Much in the same way the industrial revolution modernized agriculture, production, and the way people lived and worked, for every improvement AI brings or promises, we’re also likely to find speedbumps. As a society, as we move forward, we are once again being asked to define what is and is not permissible.

Ludwig APC continues to be a strong voice for both those using AI and those affected by it, especially as it relates to business, IP, and privacy concerns. For our clients, we do not sugarcoat the reality of AI “on the ground” and its impacts, nor do we shy away from this new technology and its legal and societal implications.

Like it or not, and whether aware of it or not, AI is impacting our lives every day. All elements of society, from corporations and displaced workers to governments and the courts, will need to continue working together to find solutions. Ideally, everyone will be able to take advantage of this amazing moment in history without being taken advantage of. If you have questions about how AI tools and products may be affecting your business, intellectual property, or privacy, contact Ludwig APC to arrange a free consultation. As experts in copyright matters, IP, and business litigation, this is a topic we have been monitoring and continue to watch closely.

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