Client Alert: Friend or Foe? Legal Risks Arising From ChatGPT and Other Generative AI Software

Introduction

Recent breakthroughs in generative artificial intelligence (AI) have captured significant media attention. Developers argue that the technology, which learns from data to produce new text, visual, or audio content based on a user’s prompt, will turbocharge productivity and revolutionize business. Organizations in sectors ranging from banking to health care to journalism are already exploring integrating tools like OpenAI’s ChatGPT chatbot and DALL-E image generator into their workplaces.

These new tools should be approached with a great deal of caution as introducing generative AI into your business could create a complex minefield of legal risks. The technology raises significant dangers related to breaches of confidentiality and data privacy, intellectual property infringement, obligations to consumers, and liabilities for negligence, defamation, or discrimination related to the use of false or biased information.

Earlier in June, a Manhattan lawyer faced sanctions in federal court for filing a legal brief generated by ChatGPT which included several citations to nonexistent cases. After being scolded by the judge for relying on “legal gibberish” generated by AI, the attorney admitted that he had no idea that ChatGPT could fabricate cases. At a recent United States Senate hearing on the dangers of AI and potential regulatory safeguards, OpenAI’s CEO, Sam Altman, practically begged lawmakers to create a new AI regulatory agency that would license, test, and screen AI models. This is an unprecedented act by a tech leader. Around the world, authorities are eager to tighten regulations related to AI and changes may be on the horizon.

In this article, legal dangers related to the use of generative AI will be discussed in five specific areas: confidentiality and data privacy, intellectual property, obligations to consumers, false information, and bias and discrimination.

Generative AI and Gibberish

Artificial intelligence generally refers to technology that utilizes data to perform tasks typically done by humans, such as analysis, pattern-recognition, and prediction. One particular subset of AI technology—generative AI—is responsible for the current cultural and corporate metamorphosis. Of the fleet of emerging generative AI products, ChatGPT has grabbed the greatest share of headlines. AI developer OpenAI released the online chatbot in November 2022, with bankrolling from Microsoft. The company launched an update, GPT-4, in March 2023.

ChatGPT has impressed—and even stunned—with its ability to create unique content that sounds convincingly human. OpenAI’s system and rival tools from Google and Bing are what AI developers call “large language models” (LLMs). Using a huge library of text data that includes books, articles, research papers, blogs, and social media posts, LLMs are “trained” to decode, analyze, and produce language.These AI applications can process and respond to a user’s prompts in an instant. They’re capable of handling requests that are far more sophisticated than simple web searches.

For instance, ChatGPT will eagerly respond to an essay question on the Roman Empire, craft a Shakespearean sonnet about any subject, suggest improvements to computer code, or devise a reply to your mother-in-law’s email. Other popular generative AI models can design graphic art, replicate voices, produce songs, or even put together a rudimentary sitcom episode. Many of these new tools are widely available online and at no charge, or with a relatively modest subscription fee.

An Overview of Select Legal Risks

The power of generative AI technology is already transforming the workforce, and in ways we never could have imagined just a year ago. LLMs like ChatGPT are now instantly finishing certain research, analysis, writing, or administrative tasks that would take hours for a human employee to complete. However, the risks associated with implementing generative AI tools are extensive and demand careful consideration. We are continuing to monitor developing elements of these risks as they unfold.

Continue reading “Client Alert: Friend or Foe? Legal Risks Arising From ChatGPT and Other Generative AI Software”

BG Title Sponsor of 2023 Boise Twilight Criterium

Bailey Glasser is the title sponsor of the 2023 Boise Twilight Criterium, which is rolling around again (both literally and figuratively) in Boise, Idaho! Now in its 36th year, this event is nationally ranked as one of the top nine best criteriums on the USA Cycling race calendar, where the top pro women’s and men’s cycling teams in the U.S. turn the streets of downtown Boise into a high-speed race course. We’ve been the title sponsor for three years running and we love being part of the Boise community.

Good luck to all the riders in this year’s race!

Bailey Glasser Awarded Top Rankings in Chambers USA 2023 and Achieves Nationwide Rankings in ERISA and Product Liability Litigation

Thank you to Chambers & Partners for our 2023 rankings, which includes two brand-new nationwide practice group rankings in the ERISA plaintiffs and Product Liability litigation categories. Having our lawyers and practice groups recognized by Chambers reflects how much we care about our clients and how hard we work to achieve successful outcomes for them.

We are grateful to all the clients and counsel (co-counsel as well as referring counsel) who took the time to participate in the process. Your time is valuable and we take that seriously. We appreciate you.

For a detailed overview of this year’s rankings, please visit here.

Partner Mark Boyko Quoted in Law360 on Significant Decision Denying Arbitration in Favor of ERISA Plaintiffs


Mark Boyko, partner and member of the Bailey Glasser ERISA practice group, was interviewed by Law360 on the biggest ERISA decisions so far in 2023. Boyko noted Harrison v. Envision Management Holding Inc. Board et al., a decision by the U.S. Court of Appeals for the Tenth Circuit, will have a far-reaching impact in protecting workers from abusive arbitration provisions designed to undermine their rights under ERISA.

In the interview with Law360, Mark Boyko said, “[The Tenth Circuit’s ruling] affirms the notion that a plan’s arbitration provision that waives a participant’s right to seek planwide relief is inconsistent with ERISA’s statutory right for that participant to obtain that same relief.” Boyko added that the decision “preserves the status quo by holding that the remedy limitation cannot be severed from the arbitration provision.”

The ruling has already been cited as ‘persuasive’ outside the Tenth Circuit, a sign of its importance in this developing area of law. #ERISA #Arbitration #ClassActions #BaileyGlasser

Read the full Law360 article here.

BG Team Led By Brian Glasser Helps Dismiss Improperly Filed Mass Tort Bankruptcy By 3M Subsidiary Aearo Technologies

In a win for injured soldiers, a federal judge on Friday dismissed the bankruptcy of 3M subsidiary Aearo Technologies, which was attempting to use its protections to permanently resolve 260,000 lawsuits alleging that 3M military earplugs caused hearing loss for veterans and U.S. service members. This new ruling upends 3M’s litigation strategy to resolve mass tort claims in bankruptcy, which would have circumvented the ability of plaintiffs to have their cases heard by a jury of their peers as guaranteed by the U.S. Constitution. Brian Glasser and Bailey & Glasser, LLP helped get this mass tort bankruptcy dismissed.

“The soldiers who used 3M earplugs deserve to the chance to hold 3M accountable before a jury of their peers,” said founding partner Brian Glasser. “3M and Aearo have no special right to put veterans in a bankruptcy box, and now can face these claims in front of juries around the nation.”

Additional Bailey Glasser lawyers working on this matter include partners Cary Joshi, David Selby, Katherine E. Charonko, and Todd Mathews.

For more information, please visit here.

Partner Larry Lederer Named to Lawdragon Top 500 Plaintiff Financial Lawyers for Fifth Straight Year

Bailey Glasser is delighted that Philadelphia partner Lawrence J. Lederer has once again been included on Lawdragon’s 2023 “500 Leading Plaintiff Financial Lawyers” list. This is the fifth straight year Larry has received this accolade, a testament to how much he cares about his clients, the hard work he puts into their cases, and the results he achieves on their behalf.

Larry has extensive experience litigating securities, commercial, and consumer class actions and other cases in federal and state courts throughout the United States. In the last year, he’s brought impactful litigations to help people who have had issues related to mortgage lending and finance, telemarketing, and PPP loans.

This recognition is especially prestigious as the 500 lawyers were selected through Lawdragon’s “well-honed methodology combining journalistic research, robust nominations and vetting with experts.” Larry, congratulations on this recognition!

Partners Kate Charonko and Sharon Iskra Speak at WVAJ Statewide Conference

Partners Katherine E. Charonko and Sharon Iskra spoke at the 65th Annual West Virginia Association for Justice Convention and Seminar on June 1-2nd in Charleston, WV. The WVAJ and its members are committed to protecting access to the West Virginia state and federal courts, the civil justice system, and the 7th Amendment right to a jury trial.

Kate Charonko, the head of our ESI & Technology practice group, was a panelist in the session titled “Electronic Information Technology: E-Discovery Planning, Data Collection, Production, Authentication, and Other Information to Get What You Need & Build Your Case.” Sharon Iskra, who heads Bailey Glasser’s Institutional Abuse & Neglect team was a panelist in the session titled “Human Rights Law: The Hot Topics and Trends You Need to Know.”

Happy Pride Month from BG

Happy Pride Month 2023 from our diverse community here at Bailey & Glasser, LLP.

“During Pride Month, we honor a movement that has grown stronger, more vibrant, and more inclusive with every passing year,” reads President Biden’s 2023 Presidential Proclamation. “Pride is a celebration of generations of LGBTQI+ people who have fought bravely to live openly and authentically. And it is a reminder that we still have generational work to do to ensure that everyone enjoys the full promise of equity, dignity, protection, and freedom.” For the full statement from President Biden, visit here.

Pride Month is currently celebrated in June to honor the 1969 Stonewall riots in New York City, where gay citizens fought back against the police who raided the Stonewall Inn. The police hauled employees and patrons from the bar, and the patrons and neighborhood residents fought back, resulting in six days of protests and violent clashes with law enforcement. The Stonewall Riots served as a catalyst for the gay rights movement in the United States and around the world.

According to the Library of Congress, Pride Month “celebrations include pride parades, picnics, parties, workshops, symposia and concerts, and LGBTQ Pride Month events attract millions of participants around the world. Memorials are held during this month for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual and transgender individuals have had on history locally, nationally, and internationally.” For more information, visit here.

Throughout June, we’ll reflect on pivotal milestones in the struggle for LGBTQ+ equality. Tenacity, strength, and yes – pride – continues to be very necessary in these times. Pride Month is an important reminder of the sacrifices and courage of many LGBTQ+ trailblazers to the cause of equality and provides an occasion to reflect on their invaluable contributions to creating a more inclusive and just society for us all. #PrideMonth2023 #equality #loveislove #saygay

Congratulations to our 2023 LCLD Pathfinder – Panida Anderson

Bailey & Glasser, LLP would like to congratulate attorney Panida Anderson on being named a 2023 Leadership Council for Legal Diversity (LCLD) Pathfinder. Ms. Anderson practices consumer protection, class action, and employment litigation with a particular focus on representing consumers in class actions under the Telephone Consumer Protection Act (TCPA). She is also the immediate past President of the National Thai American Bar Association (TABA), which facilitates the professional development of its members and increases access to legal services for the greater Thai community.

LCLD is an organization made up of more than 400 corporate chief legal officers and law firm managing partners, who have pledged themselves to create a truly diverse U.S. legal profession. LCLD’s programs are designed to “attract, inspire, and nurture” talent and promote inclusiveness within these organizations and in the participants’ circles of influence, thereby creating a new and more diverse generation of attorneys.

The Pathfinder Program is designed for diverse, high-potential, early-career attorneys at LCLD Member organizations. As a Pathfinder, Ms. Anderson will gain practical tools for developing and leveraging internal professional networks, leadership skills, and career development strategies specific to law firm practice.

“The LCLD program encourages Pathfinders to embrace our diversity and show up as our full selves.” Ms. Anderson said. “It teaches communication skills so that we can be better advocates and team players. Being able to network and become friends with like-minded diverse professionals is invaluable, and I appreciate Bailey Glasser for nominating me to be this year’s Pathfinder.”

After completing the seven-month program, Ms. Anderson will join fellow Bailey Glasser attorneys Jade Smith-Williams and Britney Littles as LCLD Alumni Program members.

Bailey Glasser became an LCLD member firm in 2022, with founding partner Benjamin Bailey as LCLD “Leader at the Front” and partner Cary Joshi as 2022 LCLD Fellow.

Learn more about the LCLD Pathfinder Program here.

BG Files in Federal Court to Confirm Collection Rights on $5 Million Award Against MyPillow CEO

Bailey Glasser has filed a federal court petition to confirm their client Robert Zeidman’s $5 million arbitration award against MyPillow CEO Mike Lindell after Mr. Zeidman won the “Prove Mike Wrong” Challenge. “Mr. Lindell’s baseless claims of election fraud have caused immeasurable damage to our country and have been soundly debunked. It’s time for him to pay the judgment,” said BG partner Brian Glasser, leading the team representing Mr. Zeidman.

In the “Prove Mike Wrong” challenge, Lindell offered $5 million to anyone who could prove data he claimed shows China interfered in the 2020 presidential election was inaccurate. Mr. Zeidman did so, and a three-judge arbitration panel concluded on April 19, 2023 that he definitively won the “Prove Mike Wrong” contest and that “failure to pay Mr. Zeidman the $5 million prize was a breach of the contract, entitling him to recovery.”

Payment was due within 30 days of the arbitration award, but Lindell has made no payment to date. In the petition, BG partners Brian Glasser, Lori Bullock, and Cary Joshi ask the court to confirm the arbitration award and compel Lindell to pay the judgment. Read more here.
#arbitration #justice #BaileyGlasser

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