On October 16, 2024, the New York State Department of Financial Services (DFS) issued an industry letter, Cybersecurity Risks Arising from Artificial Intelligence and Strategies to Combat Related Risks, providing guidance on the cybersecurity risks associated with the use of artificial intelligence (AI) and strategies for entities regulated by DFS (“Covered Entities”) to mitigate these risks.
SEC 2025 Exam Priorities: Private Funds, Cyber, Crypto, and New Rule Compliance
The U.S. Securities and Exchange Commission (“SEC”) Division of Examinations (the “Division”) released its 2025 examination priorities on October 21, 2024 (the “2025 Priorities”). The 2025 Priorities highlight a wide range of topics for entities subject to SEC examinations, particularly investment advisers and broker-dealers. The topics should be very familiar, as they largely continue recent
Generative Artificial Intelligence 101: Federal Law Still Does Not Address Use of Generative AI
United States federal law still does not address use of Generative AI, though lawmakers have proposed legislation addressing various issues.
In our previous Generative Artificial Intelligence 101 blog post, we discussed intellectual property infringement as a legal risk of using Generative AI. Today, we jump into a discussion of the various other legal liabilities associated
Key Inventorship Considerations in AI-assisted Drug Development
The utilization of artificial intelligence (“AI”) is becoming ubiquitous across a wide range of industry sectors. The biotech industry is no exception.
AI-driven platforms have become increasingly useful to biotech innovators in many areas including in discovering and developing drugs. For example, a 2022 article by McKinsey & Company estimated that nearly 270 companies have
China-Based Company Hit with AI-Related Securities Suit
Among the most distinctive and important securities class action lawsuit filing trends this year has been the influx of new lawsuit based on alleged AI-related misrepresentations. In the latest example, on October 15, 2024, a plaintiff shareholder filed a securities class action lawsuit against China-based AI and robotics company, Xiao-I, in which the shareholder alleged
Pannone heads to Lisbon for the annual PLG Academy
Pannone has been a member of PLG International Lawyers for over 30 years, providing the firm with access to a professional network of lawyers from across the world, spanning 30 countries.
For the last three years, the organisation has held an annual event aimed at the next generation of lawyers – the YPLG Academy. Last
A Musk Effect on Delaware?
Much has been written regarding Elon Musk’s criticism of the State of Delaware and the decisions of its courts about him and his many successful business enterprises–and by extension the large number of other businesses impacted by Delaware law. In a broader sense, Musk’s criticism, and that of others, has generated discussion about the perennial
Investment Advisory Firm Hit with AI-Washing SEC Enforcement Action
Over the last several months, various SEC spokespeople, including SEC Chair Gary Gensler, have issued strong precautionary statements against so-called “AI-washing,” which Microsoft Co-Pilot, an AI-powered tool, defines as a “deceptive marketing tactic where a product or service is promoted by exaggerating or falsely claiming the use of artificial intelligence.” The SEC has even issued
SEC Charges Rimar Capital Entities and Owner Itai Liptz for Defrauding Investors by Making False and Misleading Statements About Use of Artificial Intelligence
The Securities and Exchange Commission today announced charges against Rimar Capital USA, Inc. (Rimar USA), Rimar Capital, LLC (Rimar LLC), Itai Liptz, and Clifford Boro for making false and misleading statements about Rimar LLC’s purported use of…
More information at SECLaw.com Read the Full Press Release
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Guest Post: NACD Weighs In on Board Oversight of Artificial Intelligence
On Monday, the National Association of Corporate Directors released a Blue Ribbon Commission Report providing substantive guidance for corporate directors on board oversight of artificial intelligence. In the following guest post, Michael W. Peregrine, a partner at the McDermott Will & Emery law firm, reviews the Blue Ribbon Commission report and summarizes