The AI Legal Lens - Data usage and protection

Posted by on 7 Nov 2024

AST Hampsons have been providing legal advice to the commercial sector for decades. They have created some spotlight articles that are relevant today.                                 

Central to AI regulation are the General Data Protection Regulation (GDPR) and the Data Protection Act 2018, which set stringent standards for processing personal data through AI algorithms. GDPR mandates transparency, fairness, and accountability in AI-driven data processing. Individuals have rights regarding AI-based decisions affecting them, including the right to challenge decisions. Compliance requires measures like data anonymisation, obtaining explicit consent, and conducting impact assessments for high-risk AI applications. Non-compliance may result in significant financial penalties, emphasising the need for robust data protection practices in AI operations.

AI technologies often involve creating new algorithms, software, and models, raising questions about IP ownership and protection. Existing UK IP laws—patents, copyrights, and trade secrets—apply to AI-generated content. Determining eligibility for protection and identifying rightful owners remains complex. Clear documentation and legal counsel are crucial for safeguarding AI innovations, navigating licensing, and resolving ownership disputes in this rapidly evolving field.

When utilising generative AI models, which are often hosted on cloud-based servers by third-party providers, businesses typically need to share sensitive information with these external entities. Despite measures to ensure confidentiality, there is always a risk that this information could be inadvertently exposed. Such exposure can lead to significant consequences, including the potential loss of trade secret protection for vital business insights and knowledge. Additionally, any unintended disclosure of proprietary information might hinder the ability to secure intellectual property rights, such as patents and design rights, for the disclosed content. This underscores the importance of meticulous management and safeguarding of confidential information when engaging with generative AI technologies.

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