Generative artificial intelligence holds the promise of generating significant cost savings and efficiencies for companies. With the rapid development of generative AI technology, however, companies need to understand the evolving legal and regulatory risks of AI use.

Recent regulatory action in the United States and Europe has most often addressed AI developers, not necessarily the users. This includes President Biden’s October 2023 Executive Order on AI, which aimed to protect the privacy and civil rights of Americans by creating requirements for AI developers, imposing limits on federal agencies’ use of AI and urging Congress to pass necessary legislation. [Exec. Order No. 14,110, 88 Fed. Reg. 75191 (Oct 30, 2023).]