Artificial Intelligence (AI)


The simulation of human intelligence processes by machines, especially computer systems.

Why it matters

Knowledge of AI and related legal implications is important for SaaS companies that employ AI technology. In-house attorneys should be concerned about AI when it comes to data for several reasons:

- Compliance and Regulation: AI's ability to analyze and manage large datasets can sometimes lead to unintended mishandling of sensitive information. Understanding how AI interacts with data is essential to ensure compliance with privacy laws and regulations.

- Bias and Ethical Considerations: AI algorithms can inadvertently introduce or perpetuate bias, especially if the data they are trained on is biased. In-house legal teams need to be aware of these biases and how they might affect their operations.

- Security Concerns: AI systems require substantial amounts of data, some of which may be highly sensitive. In-house attorneys must be vigilant in ensuring that robust security measures are in place to protect that data from potential breaches and that there is consent to such data being used to train AI models.

- Transparency and Interpretability: AI models can sometimes operate as "black boxes," making it difficult to understand how they arrive at certain conclusions. For legal teams, this lack of transparency can pose challenges in explaining decisions to stakeholders or defending them in court.