An experienced AI Attorney should focus on helping clients capitalize on the benefits of artificial intelligence while reducing legal risks. Our AI lawyers and staff have represented technology and software companies for 30 years. We understand artificial intelligence and predictive technology and how courts will likely apply the law to AI issues. Find advise on emerging issues related to artificial intelligence, including business contracts, corporate transactions, intellectual property, website agreements (Terms of Use, SaaS, Privacy Policy drafting), GDPR and data privacy, and other common legal issues.
Artificial Intelligence (AI) is more than just a buzzword in today’s technology-driven and innovation-fueled economy; it’s a transformative force shaping industries. For businesses eager to harness the potential of the burgeoning AI sector, navigating the complex legal landscape must be a central part of strategic planning and growth. Our AI lawyers provide specialized legal services tailored to businesses from startups to mature enterprises. We represent AI companies and companies using AI. Leveraging our rich legacy as a technology law firm with a proven track record in fostering AI innovation for our clients, we stand ready to guide your AI company through legal challenges, ensuring growth and risk management. We offer a unique approach, blending machine learning insights with legal expertise (LLM), ensuring maximum ROI.
When facing legal questions or concerns regarding artificial intelligence, you need an AI lawyer who understands this rapidly evolving field. Traverse Legal is the clear choice for anyone seeking an AI attorney who can provide trusted guidance and strategic advice.
It is almost impossible to turn on the news or read an article these days without seeing a mention of artificial intelligence. AI has already changed the way that many do business, and much more drastic developments are on the way. People are speculating about the future, which seems to unfold more every day.
One recent IBM survey found that more than two-thirds of United States companies are using or are considering some form of AI in their business. Investment in the field is nearing $100 billion, and many experts are saying that AI is here to stay. AI seems to be the present and the future, as it is hard to put the genie back into the bottle once it has been opened. Nonetheless, you should be prepared to face a diverse variety of legal issues and a period of uncertainty.
At Traverse Legal, our attorneys can help you navigate this environment to protect yourself legally and be in a position to pursue opportunities in this burgeoning field. The complexities of AI require that you have an attorney with specific experience to provide the most effective legal services.
Our AI lawyers can review, draft, advise, and negotiate any necessary business agreement. Contracts will govern all aspects of your business operations, including your relationship with vendors, employees, customer agreements, and other businesses you deal with regularly. These relationships must be governed by contracts that protect your interests, there lawyers play a crucial role in developing and managing your business by providing various contract drafting, negotiation, and dispute resolution services. Their main goal is to ensure that all business agreements are legally sound, reduce risk, and protect your interests by reviewing your existing contracts to ensure regulatory compliance and identify potential legal issues, draft a contract that clearly outlines the terms and conditions of the relationship and advises you on the legal implications of specific contract terms, educates you, and helps you make informed decisions.
Also, a specialized lawyer can secure favorable terms for your business during negotiations and provide a real return on investment. Whether it’s with vendors, employees, customers, or other businesses, having contracts in place is essential for the success and longevity of your AI business. Our artificial intelligence (AI) lawyers are specialists who understand machine learning (ML) technology, legal issues related to AI technology development – such as intellectual property rights (IPR), copyright or patent infringement; legal issues relating to data privacy, data protection legislation; GDPR, cybersecurity law; cyber liability insurance; cyber security insurance.
Many AI technology companies offer cloud services to end users on a subscription basis. This is the essence of software as a service (“SaaS”). SaaS differs from software licensing, where users download software onto their servers. SaaS users never download software, instead, they subscribe to your service hosted on your web servers. SaaS contracts are common in the machine learning market. Some AI companies are connecting with an API from another provider to offer white-label solutions and commercialization (i.e., OpenAI). You might need to agree to a SaaS agreement and draft your own. Our experienced team of lawyers can help you develop and deploy AI technology as a subscription cloud service. We can help negotiate upstream and draft downstream SaaS agreements for your subscribers, whether you’re launching a new AI service or looking to upgrade your existing SaaS contracts, our AI project group can help.
When starting a business, choosing the right entity type is crucial in establishing a solid foundation for success. As your business grows, you may need to change your entity type or structure to take in investment dollars. Our corporate legal team can help you make this critical decision by advising on the different types of entities available and the benefits and drawbacks of each. We specialize in entity formation for C-Corps and LLCs and other corporate filings, handling the most popular entity types for small businesses:
Our business lawyers can help you understand these entities’ differences and decide which is right for your business. In addition, our lawyers can help you anticipate the needs of potential investors who may come later in the company’s life cycle and advise on the best entity type to suit you and your future investors. With our expertise in entity formation, you can be confident that your business is starting off on the right foot.
If you are offering a GPT through the OpenAI GPT store, you need to make sure that you have a terms of service and privacy policy that covers your GPT. Most AI developers do not realize that the OpenAI terms of use and privacy policies do not protect third-party developers. Each third-party AI and GPT developer must have their own terms of use, terms of service, end-user license agreement, and privacy policy incorporating your end-user agreement. Incorporating your end-user agreement into your GPT is also mission-critical. Our attorneys have the expertise to draft the necessary agreements and provide valuable advice on implementation options.
We provide a GPT terms of service and privacy policy template, which you can reference here.
Your company may require capital to build and grow. However, accepting investment dollars requires corporate law expertise. Investor contracts are critical to any successful AI startup, and our law firm can help you navigate this complex area. Our lawyers have decades of experience navigating startups’ unique challenges and opportunities in raising capital. We have the legal expertise to help you position your AI and machine learning company for success. Whether you are in the early stages of securing seed funding or looking to raise additional capital in later rounds, we can help you negotiate optimal transaction terms for founders and investors. Our goal is to help you achieve a balance between securing the funding you need to grow your business and preserving the interests of the founding team. With our expertise in investor relations, you can be confident that your AI startup.
AI companies often handle massive amounts of data, including personal and sensitive information. Compliance with data protection regulations like GDPR, CCPA, and HIPAA is crucial.
Trademark, copyright, and trade secret protection are critical considerations for every AI startup. Identifying, creating, and protecting these valuable intangible assets can add multiples to your valuation. Our lawyers are experts in all areas of intellectual property law, including copyright, trademark, and trade secret law. Your intellectual property assets’ are just as crucial as tangible property.
There are several critical aspects to IP protection. Your contracts with founders, employees, and contractors must be drafted to ensure ownership rests with the company or is licensed to the company. Registration of trademarks and copyrights is also necessary. License agreements with third parties must be drafted to ensure long-term success. Whether you seek to protect your intangible property and other IP assets or defend against infringement, we have the expertise to help you achieve your goals. With our comprehensive approach to intellectual property protection, you can focus on growing your AI startup, knowing that your valuable assets are secure. Understanding your potential liability for developing or using AI tools that may infringe third-party copyrights is one of the many high-risk legal issues facing AI startups and companies using AI systems.
Litigation and dispute resolution can be stressful and disruptive for your business. Unfortunately, dispute resolution is required, at some point, by most successful businesses. Find at Traverse Legal a trusted law firm that increases the chances of a successful outcome to avoid litigation and win the case if you find yourself in court. We have a deep understanding of the relevant law, understand how to apply that law to AI, and have a proven track record of successfully resolving disputes. The Traverse Legal firm has the experience your AI company needs to handle all aspects of dispute resolution, mediation, arbitration, and complex litigation. We work closely with our clients to understand their needs and goals and to develop a customized strategy to achieve the best possible outcome. Our litigation practice group takes pride in helping our clients reach a favorable resolution within defined budgets.
Your Terms of Use (TOU), Terms of Service (TOS), Privacy Policy, and Copyright (DMCA) Policies are the contracts between your AI company and everyone who uses your platform. Our law firm specializes in drafting AI-specific website terms for companies like yours. An AI lawyer from our law firm can draft from scratch or review and update your existing website agreements, terms of service, privacy agreements, and marketing language to ensure they provide comprehensive protection and comply with state, United States, and international regulations.
AI companies often operate across borders, so they may require assistance complying with international laws and regulations, such as the EU’s General Data Protection Regulation (GDPR), California’s Consumer Privacy Act (CCPA), or China’s Cybersecurity Law.
This includes formulating non-disclosure agreements (NDAs), non-compete agreements, independent contractor agreements, and employee invention assignment agreements. With the rise of remote working and international hiring, cross-border employment laws and regulations may also be a significant concern.
Many AI startups must raise capital, which can bring complex legal requirements. Legal advice can be critical during fundraising rounds, IPOs, and other financial transactions.
Legal services related to M&A could be in demand, given the current trend of consolidation in the AI industry. This can include due diligence, negotiation, and execution of the transaction.
As AI systems become more complex, their potential to cause harm increases, whether through malfunction, misuse, or unintended consequences. Legal services related to product liability and ethical considerations can help companies navigate these risks.
AI is a rapidly developing field and is subject to increasing regulatory scrutiny. Expertise in dealing with regulatory bodies and understanding forthcoming legislation could be invaluable. AI governance is part of every company’s fiduciary duty.
Many AI startups utilize open-source software with its own set of legal considerations. Understanding and ensuring compliance with open-source licenses can prevent potential legal issues.
AI companies, especially those based on unique algorithms or techniques, may require guidance on licensing their technology. Additionally, negotiating and drafting licensing agreements can be critical to their business model.
Here are some ways that businesses are using AI in their everyday operations.
Businesses may design their own technology to use and leverage AI effectively, or they may purchase a ready-made solution. Regardless of how companies incorporate AI into their business, they will be used to different legal issues from their operations before AI.
AI promises to be an engine of economic growth, but there are novel legal challenges now coming to the fore. With the technology having emerged largely in the last decade, many users do not yet know all the legal issues involved and how a court may decide litigation. Traverse Legal LLC can work with your business on the myriad of AI-related issues that you may face.
It’s essential to be aware of key legal issues that may arise. Intellectual property rights, data privacy and security, liability for AI-generated decisions, and ethical concerns are among the crucial considerations. Obtaining proper legal counsel can help businesses navigate these complex issues, protect their intellectual property, comply with privacy regulations, and minimize legal liabilities.
With our extensive experience in technology and intellectual property law, Traverse Legal is well-equipped to assist businesses in effectively addressing these challenging AI legal issues. By partnering with our knowledgeable attorneys, you can gain the strategic guidance and comprehensive legal support necessary to navigate the ever-changing landscape of AI law and protect your business interests.
As artificial intelligence becomes more integrated into our daily business operations, always consider the legal implications that come along with this technology. With help from our lawyers, you can effectively address the legal concerns of AI use in your business. Here are some main considerations to keep in mind:
By consulting with our lawyers, you can proactively address these main legal considerations and ensure that your AI systems are compliant, protecting your intellectual property, privacy, and liability. With our guidance, you can confidently leverage the efficiency of AI while avoiding legal hiccups that come with it.
Intellectual property issues can take on a number of forms with regard to AI. You may have an existing patent, copyright, or trademark and have found that someone else has infringed upon your rights.
Creative AI is the next frontier for technology. The headlines have been filled with stories about ChatGPT and how companies are using it to automatically generate content. Some people are even using AI to generate articles and songs. The problem is that AI-created content uses existing content to generate an output. The AI content could impermissibly “borrow” large parts of a copyrighted work and cause intellectual property headaches.
Here are some other intellectual property challenges that businesses using AI have faced:
Federal law and regulations have not yet clarified how intellectual property rights will work with respect to AI. Until then, government agencies and courts may interpret the law in a patchwork manner without a specific law to apply.
The Copyright Office has considered numerous applications to register a copyright for AI-generated content. At a minimum, the Copyright Office would seem to require some level of human creative input into the finished product. At this time, the Copyright Office has not determined the level. You would need the help of an experienced intellectual property lawyer to help you marshal the most persuasive arguments when you apply for the protection of your work.
The nature of AI makes it more likely that someone can take copyrighted material and use it for their own benefit, even if they do not do it intentionally. You must take firm and quick action to protect your own property rights, which can include:
Right now, owners of content have filed a flurry of lawsuits against companies that provide AI software, claiming that their tools scraped the internet for copyrighted content and facilitated violations of their rights. Some content generated by AI has been found to be simply plagiarized. If you use AI-related technology, you should be aware that you could face these allegations.
Even if intellectual property rights are not clearly defined, you should enforce your own rights as vigorously as possible with the help of an attorney. At Traverse Legal, we are experienced in complex IP matters, and we understand how established principles of the law should apply to AI. However, until federal copyright laws are clarified, you can expect the possibility of continuous litigation. Our attorneys can help when you need to go to court.
The protection of personal data and privacy is always a top concern for every business. You must take proactive steps to safeguard all sensitive information of your business and customers against data breaches and cyber threats. This is where an AI attorney can be immensely valuable.
Our AI attorneys understand data protection and privacy laws. We can help you understand the legal requirements and obligations that apply to your specific situation regarding your use of artificial intelligence and information protection. With our assistance, you can avoid costly penalties for data breaches and compromised sensitive information.
AI can invoke a number of issues that are not strictly related to the law but can involve ethical considerations. Businesses may need policies and procedures to address the ethics and procedures for using AI.
For example, here are some of the challenges that you may encounter in integrating an AI-based solution:
While an attorney cannot make decisions for you on how you will use AI, they can help you consider some of the ethical questions involved. Your attorney could draft the procedures for how your business uses AI to help keep you on the right side of any ethical issues.
Employers face a number of risks when they are using AI. They can be sued if they violate the law or their employees’ rights. For example, many companies are turning to AI in their recruiting and hiring practices. However, AI uses information that is already in the public realm. Oftentimes, an employer does not know how that information was derived or what factors went into making the existing decisions. Thus, an employer could be susceptible to lawsuits for discrimination if the AI reinforces an existing bias. The United States Equal Opportunity Commission has taken a particular interest in the outcomes of AI-based hiring and promotion decisions.
Various states are handling AI issues differently. For example, California has amended its California Consumer Privacy Act to account for the use of AI in employment-related matters. New York City will now regulate AI hiring tools, requiring a bias audit before they can be used. New York will be the first jurisdiction to enforce anti-bias rules in the use of AI, but it will be far from the last.
Developing comprehensive corporate policies regarding employee use of AI is vital for mitigating legal risks and safeguarding sensitive information. Such policies should outline the permissible uses of AI technologies, including data collection, storage, and processing. They should also address issues related to privacy, confidentiality, and potential biases in AI systems. By clearly defining boundaries and guidelines, businesses can protect themselves from legal repercussions and ensure the ethical and responsible use of AI within their organizations.
AI is still in its early stages. The federal and state governments are still considering the most effective regulatory approach to the technology. Businesses can expect that much of the regulation will be on the state level, with additional rules from the federal government when the technology is used in an area that the federal government regulates. For now, the Federal Trade Commission has been aggressive about asserting its own authority to regulate AI.
It is virtually impossible for such a disruptive technology to be unregulated. However, the future of AI regulation is still evolving. It is virtually impossible that technology will be able to impact so many areas of our lives without being more closely regulated. The contours of future regulation are still to be determined.
Businesses must remain informed about trends and regulatory efforts. If they conduct business across state lines, they will likely need to follow numerous different laws.
For example, there are proposed laws in the United States that would require impact analysis when AI is used in certain industries, such as housing and credit. The Federal Trade Commission would be empowered to enforce these rules. Various states are beginning to pass laws. In addition, the European Union has proposed a regulation to govern AI that would apply to anyone “placing on the market or putting into service AI systems in the Union.”
With a broad mosaic of potential laws coming in the future, you would need to integrate your own compliance efforts to follow all regulations. You could be subject to regulations in multiple jurisdictions, and you would need to follow them all. Your business may even need to follow regulations from other countries if you do business there.
The most important thing is staying informed because the landscape will shift rapidly in the future. Businesses may need to comment on proposed regulations and even consider filing a lawsuit if the regulation is illegal or violates their rights.
Then, companies must be prepared to comply with regulations by issuing detailed policies and procedures to be followed. When regulators are considering enforcement action, they will first ask for a copy of the policies and procedures to verify that they exist and that they were followed.
Just as AI can help your business, it can also present challenges and pitfalls. One of the more injurious uses of AI is to present deepfake videos. Your brand could be irreparably damaged when a competitor or someone with bad intentions produces deepfake videos that harm your reputation. However, finding the right person to take action against and putting a stop to this behavior can be challenging.
Another potential problem is when a contract or a law would force you to reveal the algorithm or inputs into what is generated by AI. Then, your trade secrets and methods may be at risk. Once information is in the public realm, others may be able to use it with impunity.
Another major potential problem relating to AI is what happens when something goes wrong. Professionals in certain fields have responsibilities and standards that they must follow. For example, if a doctor uses AI to help their practice of medicine, and they make a mistake, they could potentially lose their license. The same thing applies to a lawsuit – someone will need to be responsible if AI makes a mistake. The question in each case is who would be liable. Some of this could be addressed by contract ahead of time. Once something happens, the court would determine who is liable and who must pay damages.
One of the major problems that businesses may face is enforcement actions and litigation. The federal government could act against companies using AI when it results in discrimination. In addition, AI could also lead to enforcement actions for violations of privacy.
Many of the early AI-related lawsuits have been related to:
The use of AI could vary depending on your industry. Companies can expect that there may be laws and regulations in the future governing when industry-based solutions can be fully autonomous.
There are currently specific regulations in the following industries relating to AI:
One of the key early concepts in AI regulation is the level of explainability. The important question is whether a human being can explain the decision that the machine made. For example, the Consumer Financial Protection Bureau has a new regulation that prohibits consumer credit companies from taking actions against consumers that are based on an algorithm, when a human being cannot explain the reasons for them.
Artificial intelligence has undoubtedly made significant advancements in recent years. However, when it comes to legal advice, relying solely on AI is never recommended. While AI-powered tools can assist lawyers in case research and document analysis, they cannot fully replace the experience and judgment of a human attorney.
One of the primary reasons why AI cannot provide legal advice is the complexity of the legal system. Laws and regulations differ across jurisdictions, making it challenging for AI algorithms to keep up with the constantly evolving landscape. Interpreting and applying the law requires human judgment, which considers contextual factors and societal implications that AI cannot fully grasp.
Moreover, legal matters often involve emotions, ethics, and personal circumstances that require empathy and understanding. While AI can process vast amounts of data and identify patterns, it falls short of comprehending the emotions and motivations that can influence legal outcomes. Attorneys, on the other hand, have the ability to empathize with their clients, offer personalized advice, and navigate the human elements of legal disputes.
While AI has its place to help with certain aspects of the legal field, we must recognize its limitations. When providing legal advice, nothing can replace the experience, expertise, and judgment of a human attorney.
Traverse Legal can handle all of your AI-related needs with our expertise in both high-tech and business law. Our lawyers understand the underlying technology and its place in the regulatory environment and can add value to your business because we are technology lawyers at heart. We will partner with you to deliver the most effective solutions to your AI legal issues.
We can help you anticipate what could happen in the future and prepare you to deal with several challenges like:
For now, the most common types of lawsuits involve trade secrets and patent infringement, although the scope and breadth of litigation may change as AI gains wider usage.
At Traverse Legal, we will get to know your business and help you prepare in advance for what you may face so you can be ready for the future. The first step is to contact us to speak to an attorney so we can get to know each other. You can message us online or call us today at 866-936-7447 to learn more.
Traverse Legal’s Attorneys are globally recognized for their experience and results in the legal areas of Complex Litigation, Internet, Trademark, Copyright, Cybersquatting, Drone, Defamation, Trade Secret, Non-Compete, and Business Law.
Founding attorney Enrico is a seasoned consultant who guides companies, including law firms, in effectively integrating artificial intelligence (AI). With a wide range of consulting services, Enrico assists clients in harnessing the power of AI while ensuring ethical and responsible implementation.
Years of experience: 35+ years
At Traverse Legal, we understand the unique legal considerations that come with AI technology. We offer a range of AI-related legal services to help businesses navigate the legal landscape. Our experienced attorneys can assist with patenting, copyrighting, and protecting trade secrets related to AI-generated works. We can also provide guidance on compliance with data laws and regulations and help businesses establish risk mitigation protocols when it comes to liability and accountability issues arising from AI systems making autonomous decisions.
Intellectual property rights are crucial when dealing with AI-generated works. Traverse Legal has extensive experience in helping businesses protect their intellectual property (IP) rights in the AI sector. While federal law has not clarified IP rights in relation to AI, our attorneys can navigate the legal frameworks and take proactive steps to safeguard your AI innovations. Should an infringement of your IP rights occur, we have the experience to take appropriate legal action to protect your interests.
Absolutely! Compliance and regulatory issues surrounding AI technology can be complex, but Traverse Legal can provide the guidance businesses need. Due to AI’s reliance on data, privacy and data protection are major concerns. Our AI lawyers can assist in ensuring compliance with data laws and regulations and help develop robust data protection and cybersecurity measures. With our help, you can confidently stay on the right side of the law.
Startups using AI face a unique set of legal challenges, and Traverse Legal understands the needs of these businesses. We provide comprehensive support for startups using AI, from helping with patenting and IP protection to guiding through compliance and regulatory issues. Our attorneys work closely with startups to provide personalized legal solutions tailored to their specific goals and challenges. With our support, startups can focus on developing their AI innovations while knowing that their legal interests are well taken care of.
Litigation and dispute resolution can be complex and multifaceted in the realm of AI. Traverse Legal brings a wealth of experience to handling AI-related cases. Our attorneys have a deep understanding of AI technology and the legal nuances surrounding it.
Whether it’s protecting your IP rights, resolving disputes related to AI technology, or representing your organization in AI-related litigation, our team is well-equipped to handle your case with skill and efficiency.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by attorney Enrico Schaefer, who has more than 20 years of legal experience as a practicing Business, IP, and Technology Law litigation attorney.
