AI Legal Issues

Legal issues and related topics to help understand AI and the Law

There are several key legal issues surrounding AI. These issues include copyright and intellectual property, trademark and logo generation, data privacy and compliance, and ethical AI and bias. The issues frame a regulatory landscape with litigation risks and other pitfalls. To navigate these challenging issues, businesses should develop AI governance policies, train employees on legal and ethical implications, engage stakeholders, and stay informed about legal and regulatory developments in the rapidly evolving AI world.

Copyright and Intellectual Property

A landmark decision in February 2025 in the case of Thomson Reuters v. ROSS Intelligence ruled against the fair use defense for AI training data. The court found that using copyrighted material (Westlaw headnotes) to train an AI legal research tool was not fair use, potentially setting a precedent for future cases.

Trademark and Logo Generation

While AI-generated logos can be trademarked, they cannot be copyrighted due to lack of human authorship. This raises concerns about originality and potential similarity to existing designs. Businesses using AI logo generators should carefully review platform terms, ensure distinctiveness, and conduct thorough trademark searches.

Data Privacy and Compliance

Industry-specific AI solutions are becoming more prevalent, requiring compliance with regulations like HIPAA for healthcare and anti-fraud regulations for finance. Companies must proactively audit their AI systems to ensure compliance with evolving data privacy standards.

Ethical AI and Bias

Ethical considerations in AI are gaining prominence, with issues of bias, accountability, and transparency becoming legal mandates. Companies are expected to implement internal policies addressing fairness and ethical use, as well as regularly audit AI systems to mitigate potential risks.

Litigation Risks

As AI adoption grows, so does the likelihood of litigation. Potential lawsuits may arise from discrimination claims, data breaches, or product liability cases related to AI-powered products. Companies should strengthen their litigation readiness through risk assessments and thorough documentation.

lawyers

Regulatory Landscape

The Trump Administration recently rolled back the previous administration's Executive Order on AI, easing federal regulatory scrutiny of AI. However, this may lead to more assertive policymaking at state and local levels, focusing on safety, bias, privacy, and sensitive use cases like employment, healthcare, and education. As of March 2025, several U.S. states have enacted AI laws or introduced significant legislation:

California: Enacted multiple AI-related laws, including AB302 (2023) to protect individuals from unsafe or ineffective AI systems.
Colorado: Passed comprehensive AI legislation, establishing a regulatory framework similar to the Colorado AI Act.
Connecticut: Passed SB 1103 (2023) to protect individuals from unsafe AI systems.
Illinois: Passed HB 3563 (2023) to ensure interdisciplinary collaboration in AI development.
Louisiana: Enacted SCR 49 (2023) to analyze and report on AI systems in use.
Maryland: Implemented AI-related laws to regulate AI use.
New York: Enacted AB A4969 (2023) and SB S3971B (2019) to foster collaborative dialogue on AI.
Texas: Passed HB 2060 (2023), establishing an AI advisory council.
Utah: Implemented the Utah Artificial Intelligence Policy Act (UAIP), effective May 1, 2024, focusing on transparency in generative AI use and consumer protection.
Vermont: Enacted HB 378 (2018) and HB 410 (2022), creating a Division of Artificial Intelligence.

Other states with notable AI legislation include Delaware, Indiana, Iowa, Montana, Oregon, Tennessee, Virginia, and Washington. As of the 2024 legislative session, at least 45 states, Puerto Rico, the Virgin Islands, and Washington, D.C. introduced AI bills, with 31 states enacting legislation.

	Copyright Law Battle over Copyrighted Material The entertainment industry is fighting back against OpenAI and Google.

	Ethics AI ethical issues AI raises several ethical concerns that have significant implications for society.

	Bias Bias in AI A condition where AI systems produce unfair or prejudiced results.

	AI Act AI Act in EU European Union legislative framework for regulating AI.

	Data Privacy AI and Data Privacy Data privacy is key as AI advances and becomes more pervasive in everyday life.

	Environment AI and the Environment AI has become an integral part of our lives, but the adoption of AI raises concerns.