Key Takeaways: AI and Other Considerations for Emerging Companies – Morgan Lewis

When focusing on getting a company off the ground and ensuring success for those involved—founders, employees, investors, etc.—there are some concerns regarding artificial intelligence (AI) that would be wise to keep in mind.

AI

• Use and Risk Assessment: Assess AI’s application within your organization
• System Inventory: Catalog all AI applications within your operations and evaluate their risk levels (Prohibited AI? High-risk AI?)
• Specific Policies: Establish or update policies specific to AI use
• Designated Responsibility: Assign a dedicated role for AI oversight

Other Considerations

• Employee Training: Educate employees on responsible AI use, particularly as it pertains to intellectual property (IP) and privacy laws
• Human Resources Considerations: Ensure AI compliance with employment, privacy, and labor laws
• Contracting Matters: Thoroughly evaluate AI vendors and ensure comprehensive contractual agreements
• M&A and Investment: Perform due diligence, include risk mitigation strategies, be mindful of regulatory matters and liability for AI and IP that goes into it
• Structural Compliance: Integrate AI governance within existing compliance frameworks
• Risk Mitigation Strategies: Implement measures to ensure that AI systems operate within defined risk thresholds and embody organizational values.
• Governance Structures: Establish frameworks for AI accountability, transparency, and oversight
• Standards and Guidelines Alignment: Ensure AI systems comply with technical standards, ethical norms, and regulatory mandates, especially when training your AI with data
• Stakeholder Engagement: Actively involve users, communities, and regulators to address AI-related concerns and insights and make your voice heard
• Continuous Monitoring: Monitor AI systems to adapt to technological advancements, regulatory changes, and evolving stakeholder expectations
• Foster Innovation and Ethical AI Research: Encourage ongoing research and development within your organization

By keeping up with emerging trends and strategically integrating AI technologies into their business operations and understanding the applicable laws and regulatory requirements, new companies can gain a competitive edge and take full advantage of the opportunities offered by AI-driven innovation.