Investors and entrepreneurs everywhere are impressed with the potentially transformative promise of artificial intelligence. Unfortunately, AI’s seemingly unlimited promise has also attracted companies and other players who, in order to participate in the current AI wave, overstate their AI capabilities. These kinds of statements have already attracted the attention of plaintiffs’ lawyers and the SEC.
— A Brief Analysis on the AI Safety Governance Framework
1. Background and Structure of AI Framework
On September 9, 2024, the National Technical Committee 260 on Cybersecurity of Standardization Administration of China (“TC260”) has promulgated the AI[1] Safety Governance Framework (V1.0) (the “AI Framework), which aims to implement the Global AI Governance Initiative
In recent months, the SEC Chair and other government officials have made it clear that they are closely watching for companies that try to catch the AI wave by making exaggerated or false claims about the AI capabilities of their products or services. In the latest example of the crack down on these kinds of
1. Trends and Overview
1.1 Sanctions Market
In the past 12 months, the sanctions sector has undergone significant changes and growth, with a notable increase in US sanctions imposed on Chinese companies. This surge reflects the escalating geopolitical tensions between the US and China. The US has broadened its scope of sanctions to include more
SEC officials have for months been signaling their concerns about companies overstating their AI credentials, a phenomenon that the officials and others have called “AI washing.” As set out and partially transcribed in a September 5, 2024, TheCorporateCounsel.net post (here), SEC Chair Gary Gensler recently recorded a video in which he reiterated concerns
Every year after Labor Day, I take a step back to survey the most important current trends and developments in the world of Directors’ and Officers’ liability and insurance. This year’s review is set out below. As the following discussion shows, this is a particularly interesting time in the world of D&O.
The SEC has already made it clear that it intends to pursue enforcement actions against firms that misrepresent their Artificial Intelligence (AI) capabilities. In the latest example of the SEC’s commitment in that regard, earlier this week the SEC filed an enforcement action against an investment advisory firm, its holding company, and the two firms’
At this point, there is nearly universal agreement that artificial intelligence (AI) is (or at least will be) transformative. It is also clear that as companies struggle to adapt to the new technology, they also face a host of challenges, including disclosure and regulatory risks, and the related risk of litigation. As a result, AI
The homeowners property insurance landscape is shifting rapidly, driven by advancements in artificial intelligence (AI) and surveillance technology. A recent article from Business Insider, Through The Roof: My Journey Into The Surreal, Infuriating Future of Homeowners Insurance, highlights the growing concern over insurance companies using drones, AI, and surveillance tools to monitor and evaluate homeowners, …
On August 9, 2024, the West Virginia Office of the Insurance Commissioner issued Bulletin 24-06 on Artificial Intelligence Systems (“Bulletin”). The Bulletin is applicable to “all insurers authorized to do business in West Virginia.” The Bulletin does not adopt the entire NAIC Model Bulletin on the Use of AIS by Insurers (“NAIC Bulletin”) verbatim; however,