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California's proposed AI bill, deep fakes, and more

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G M
April 21, 2023

Welcome back to the newsletter dedicated to keeping you up to date with the latest AI developments affecting the world of law and policy.

Today you’ll get:

  1. A closer look into California’s proposed AI oversight bill

  2. High profile celebrity deep fakes and their legal implications

  3. A study on how large and mid-size firms are adapting to AI

  4. AI’s emerging impact on legal tech jobs

  5. Three AI legal tools to boost your productivity this week

Let’s jump in.

  • California lawmakers have proposed legislation (A.B. 331) to monitor how employers and industries use automated decision tools, including algorithms that filter out job applicants and programs that detect academic cheating.

  • The bill would impose assessment requirements on the private sector's use of such software and is one of the few measures across the nation that would do so.

  • The legislation targets discrimination from AI software in employment, education, housing, utilities, health care, financial services, and other areas.

  • The bill requires developers and users of the tool to each submit annual impact assessments to the California Civil Rights Department by 2025, making it the first in the nation to divide those responsibilities.

  • Companies would need to implement a governance program putting those safeguards into practice and write a publicly available policy listing the types of automated tools used and how the company manages the risk of illegal discrimination.

  • Business groups have raised concerns about unclear terms and potential financial penalties, including private right of action that would allow state residents to bring suit, a provision that hasn't been included in any other AI proposals.

  • The bill has been approved by the California Assembly Privacy and Consumer Protection Committee on an 8-3 vote at its April 11 hearing and is expected to be revised.

  • Read the full proposed bill here

Legal troubles mount as AI deep fakes flood the internet: From Drake songs to Michael Schumacher to Tom Brady, what's next?

  • The use of artificial intelligence to create deep fakes of celebrities, such as Drake, Tom Brady and Michael Schumacher, has raised legal concerns around copyright and the right to compensation for artists.

  • The legal implications of AI-generated content go beyond issues of copyright and compensation. They also raise concerns about the use of AI to deceive and manipulate people, as well as the potential harm caused to the reputation and privacy of individuals.

  • As the use of AI-generated content becomes more widespread, it is likely that legal frameworks will need to adapt to protect the rights of individuals and address the potential negative consequences of this technology.

  • The Thomson Reuters Institute conducted a survey in late-March to gather insight from over 440 respondent lawyers at large and midsize law firms in the United States, United Kingdom, and Canada, to explore the evolving attitudes towards the use of generative AI and ChatGPT within law firms.

  • The survey revealed that 82% of lawyers believe that ChatGPT and generative AI can be applied to legal work, while 51% believe that they should be applied to legal work.

  • Actual use of generative AI among law firms is currently quite limited, with just 3% of respondents saying they are using generative AI right now, but 34% of respondents indicating that their firm is considering whether or not to use generative AI for legal operations.

  • The report suggests that lawyers are taking a cautiously proactive approach to the use of generative AI, with about 15% of respondents saying their firms have warned employees against unauthorized generative AI use at work, and 6% saying their firms have banned unauthorized usage outright.

  • Many lawyers expressed concerns about accuracy and security, particularly with respect to client confidentiality, with 62% of respondents having concerns with the use of ChatGPT and generative AI at work, including 80% of partners or managing partners.

  • Despite these concerns, the report suggests that attitudes towards generative AI and ChatGPT are changing, and potential use cases are being explored by many law firms.

  • ChatGPT and generative AI have the potential to change the legal industry significantly, and the report suggests that as the technology evolves, it will likely become more widely used within law firms.

  • Read the full report here

  • There has been a trend of cutting tech jobs, including operational roles in litigation support positions, at Big Tech companies and in the legal technology vertical. Many factors may contribute to this trend, such as inflation, cost of financing, geopolitical turmoil, and the recent boom in AI advancement.

  • The general outlook for eDiscovery business conditions seems relatively positive, as indicated by data from the Winter 2023 eDiscovery Business Confidence Survey composed by EDRM and ComplexDiscovery. Over 93% of the survey’s respondents stated they believe business conditions to be good or normal at this time and feel that conditions will remain the same for at least the next six months. While only about 6% felt general business conditions were worsening, roughly double that amount (12%) felt gross profits from eDiscovery activities would decrease.

  • The traditional roles in the legal tech industry are changing, and businesses are turning to Business Analyst/MBA types to run the software being used to process and review discovery. (source: Erika Santiago, Director of Corporate Training & Recruiting at Legal Tech Talent Network)

  • AI can cut down on the number of operational roles needed to support cases from collection to production, but it can also help firms utilize their existing resources and reduce the number of attorneys and staff needed to handle certain matters.

  • However, new jobs are opening in the legal tech vertical to replace some of those lost, including increased knowledge management and practice solutions positions in law firms and consulting firms that consult with law firms and corporations on how to utilize legal AI tech.

  • The impact of AI on jobs in the legal tech industry is ongoing, and there will likely be continued layoffs and reorganization of the legal tech business model as the latest wave of AI technology impacts the roles.

This week’s AI legal-tech spotlight

  • LegalRobot is a platform that leverages AI to facilitate legal document creation and analysis, providing users with document analysis, automated contract drafting, and customization features. Its standout capability is its machine learning algorithms that are designed to understand legalese and provide explanations in plain language, simplifying complex legal documents. The platform offers a range of pre-built templates and customizable options, making it a versatile tool for both law professionals and businesses seeking legal assistance.

  • Latch is a legal practice management software that uses AI to automate and streamline various aspects of law firm operations, including case management, document automation, time tracking, billing, and client communication. Its AI-driven automation tools automate repetitive tasks and provide suggestions for document drafting and case management. The platform's interface and integration with popular cloud storage services allow law firms to centralize their data and collaborate on cases easily.

  • OneLaw.ai is a legal research platform that harnesses AI to analyze legal documents using natural language processing. The platform provides access to case law, statutes, and regulations and has intelligent search capabilities. OneLaw.ai's technology allows users to search using plain English, making legal research more accessible and efficient for both lawyers and non-lawyers. OneLaw.ai offers tools such as citation analysis and automated case summarization, which enable users to comprehend the significance of specific cases.