⚖️ AI Liability & Litigation and Proactive Governance: Preparing for the Legal Risk Landscape

Welcome to AI Unraveled, Your daily briefing on the real world business impact of AI.

This show provides an extensive overview of the burgeoning legal risk landscape surrounding Generative Artificial Intelligence, asserting that AI's autonomous capabilities challenge traditional legal doctrines like foreseeability and liability. It details the emerging global regulatory dichotomy, contrasting the European Union's comprehensive, risk-based approach—centred on the EU AI Act and revised Product Liability Directive—with the United States' fragmented, litigation-led system driven by state laws and existing agency mandates. A major section analyses the central conflict of copyright law, discussing high-stakes lawsuits over training data and the US Copyright Office's firm stance that AI-generated content requires meaningful human authorship for protection. Furthermore, the show explores various liability theories, including negligence and product liability, the threat of defamation by "hallucination," and pervasive privacy concerns. Finally, it concludes by advocating for a proactive, governance-first strategy, stressing that robust data lineage and external contractual safeguards are critical for an effective legal defence.

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