The latest trend in generative AI is the rise of “AI Assistants” or “Chatbots.” These tools are increasingly trained on internal company data to interact directly with consumers and aim to improve customer service by generating responses on behalf of the organization. However, this brings new legal challenges, especially regarding data privacy. Because “biometric” data or information is often broadly defined, compliance with privacy regulations becomes critical when chatbots and AI agents use voiceprints, cameras (capturing or processing hand or facial geometry) or other sensors to provide a personalized service. Companies should implement safeguards to meet legal requirements, avoid penalties, and secure insurance coverage to mitigate financial risks related to compliance with data privacy laws and regulations.
