The recent meteoric rise of Artificial Intelligence (AI) has not only upended many traditional business processes and set financial markets ablaze, but it has also captured the attention of the world’s political leadership. The leaders’ response includes not only excitement about AI’s impressive potential, but also concerns about the legitimate risks that AI presents. At
Earlier this week, a plaintiff shareholder filed a securities class action lawsuit against ad-buying platform The Trade Desk after the company announced revenues lower than anticipated due to delays in the rollout of the company’s AI-based forecasting tool. As discussed below, this new lawsuit arguably represents a potential new direction in AI-related securities lawsuits. A
The global economy is still adapting to the advent of the Artificial Intelligence (AI) era. It remains unclear what AI ultimately will mean for economies and businesses, and many businesses are struggling to adjust in real time. The firms experiencing these struggles also include companies in the business of providing AI products and services. In
On February 11, New Jersey Banking and Insurance Commissioner Zimmerman issued Bulletin 25-03 regarding the use of artificial intelligence systems (AIS) in insurance, applicable to all insurers authorized or admitted in New Jersey. New Jersey becomes the 23rd state to adopt the bulletin based on the NAIC Model Act on the Use of AIS by
On February 5, Delaware joined 21 jurisdictions who adopted guidance similar to the NAIC Model Bulletin on the Use of Artificial Intelligence (AI) Systems by Insurers in 2024, and four additional jurisdictions have otherwise issued guidance or regulation.In addition to other detailed guidance, Bulletin No. 148 also reiterates the Delaware Department of Insurance’s authority to
In my recent year-end wrap up, I noted that one of last year’s top stories was the rise of artificial intelligence (AI) as a source of corporate and securities litigation risk. Among the evidence reflecting the rise of AI as a source of risk was the onset of securities class action litigation containing AI-related
According to the latest annual report from NERA, and based on NERA’s inclusive counting methodology, the number of federal securities class action lawsuits was flat in 2024 relative to 2023, but the number of “traditional” securities class action suits increased in 2024 for the second year in a row. In addition, the number of case
In what may be the SEC’s first AI-washing enforcement action against a reporting company, on January 14, 2025, the agency brought a settled enforcement action against Presto Automation, a restaurant services technology company, based on the company’s alleged misrepresentations “regarding critical aspects of its flagship artificial intelligence (“AI”) product, Presto Voice.” A copy of the
A Note providing an overview of the legal framework governing AI ethics in China. The Note examines the role of governmental and non-governmental organisations, addresses key ethical issues such as privacy, transparency, bias, and accountability, and discusses China’s participation in global AI governance initiatives. It covers professional responsibility in AI development, AI-induced negligence, and challenges
The directors’ and officers’ liability environment is always changing, but 2024 was a particularly eventful year, with important consequences for the D&O insurance marketplace. The past year’s many developments also have significant implications for what may lie ahead in 2025 – and possibly for years to come. I have set out below the Top Ten