ChatGPT is not taking over the world yet, but it may lead to legal trouble [REPORT]

While AI systems can unlock new levels of creativity and acumen, creators, brands and agencies need to be wary of key legal risks – from potential intellectual property infringements to transparency about uses of consumer data – writes the 4A’s Ashwini Karandikar.

Concerns surrounding AI often revolve around its potential to dominate humanity, reminiscent of the chilling dystopian world portrayed in The Matrix. These fears were heightened recently after more than 300 AI executives, researchers and engineers signed a letter detailing the risk that AI poses for human extinction. And while it’s important to keep an eye on a potential takeover, there are other immediate and pressing concerns about AI that demand our attention.

AI-driven technologies are transforming the way businesses engage with consumers, offering opportunities for targeted campaigns, personalized content and data-driven decision-making. However, the intersection of AI and the creative sector poses unique legal challenges that demand a thoughtful and balanced approach. Disagreements concerning intellectual property (IP), allegations of privacy violations, ethical dilemmas and liability disputes could soon plague an organization if not navigated with caution.

These issues, and topics such as AI and ChatGPT, will continue to dominate the press, social platforms and conferences around the world.

Here are four key areas of consideration when it comes to using large language models like ChatGPT.

1 – Intellectual property risks
AI‘s ability to generate content without human oversight challenges traditional notions of copyright and IP rights. Algorithms capable of producing original advertisements or mimicking existing ones raise questions about ownership and infringement.

Determining who owns AI-generated work and the extent to which it violates IP laws can be a complex task, as AI‘s creative output blurs the line between human and machine authorship.

Our legal systems will need to adapt to this evolving landscape, ensuring fair attribution, protection of IP rights and providing clarity on ownership.

2- Transparency and consumer protection
AI algorithms are increasingly used to analyze consumer data and deliver targeted advertisements. While personalization can enhance user experience, it also raises concerns about privacy, consent and transparency.

Agencies, advertisers and creators will have to be transparent about the use of AI in data collection and processing, ensuring compliance with appropriate regulations in the US and globally.

Clear disclosure will be critical to preventing the creation of misleading or deceptive advertising campaigns, where AI-generated content might blur the line between what is genuine and what is fabricated.

3- Ethical considerations
AI‘s ability to analyze vast amounts of data allows agencies and their clients to understand consumer preferences better and tailor campaigns accordingly. However, ethical issues arise when AI algorithms perpetuate biases or manipulate emotions for commercial gain.

Organizations will need to take responsibility for training AI systems to avoid discriminatory practices and ensure fairness, while also incorporating those best practices into their operational framework.

4- Liability and accountability
Questions of liability and accountability will invariably arise when AI systems are used to make decisions in advertising. Legal frameworks will need to evolve to allocate responsibility between AI developers, advertisers and platforms in cases of liability, ensuring that the consequences of AI-generated advertisements are addressed appropriately.

Given the rapid advancements of AI, our legal frameworks may perpetually struggle to keep pace, leaving creators with the burden of navigating this wild west state of creating. Industry leaders must collaborate to establish guidelines that strike a balance between encouraging creativity and ensuring that everyone’s rights are protected – creators and consumers alike.

To download report, CLICK HERE.

About Author: Ashwini Karandikar is executive vice-president of media, technology and data at the 4A’s.