The Next Big Thing?: The Legal Implications of ChatGPT

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By Haebin Lee

Artificial Intelligence (AI) technology has rapidly advanced in recent years, and it is now becoming an essential tool for many businesses and organizations. AI technology, like ChatGPT, is capable of performing complex tasks that would be difficult or impossible for humans to do on their own. While AI technology has many benefits, there are also several legal implications that must be considered.

One of the primary legal implications of AI technology is privacy. AI technology often involves collecting and processing large amounts of data, which can raise significant privacy concerns. For example, ChatGPT is an AI language model that requires access to vast amounts of text data to operate effectively. This data may include personal information, such as names, addresses, and other identifying information. It is crucial that organizations using AI technology like ChatGPT comply with relevant privacy laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. For example, the CCPA requires companies to disclose the personal information they collect from California residents, and to give those residents the right to delete their information upon request. (Cal. Civ. Code § 1798.100 et seq.).

Intellectual property is also a significant legal concern when it comes to AI technology. AI models like ChatGPT are often created through a process called machine learning, which involves training the model on large amounts of data. This data is often proprietary, and the process of training an AI model can be expensive and time-consuming. As a result, organizations may seek to protect their AI models through intellectual property laws. Furthermore, the legal status of AI-generated intellectual property is still evolving, and it remains unclear whether AI-generated inventions can be patented or protected as trade secrets. The US Patent and Trademark Office (USPTO) has issued guidelines on the patentability of AI-generated inventions. According to the guidelines, an invention created solely by AI without human intervention is not eligible for patent protection. However, an invention that involves some level of human involvement in the conception or reduction to practice may be eligible for a patent. (2019 Revised Patent Subject Matter Eligibility Guidance, 84 Fed. Reg. 50 (Jan. 7, 2019)). The text generated by ChatGPT may raise following intellectual property related issues.

 

  • Plagiarism: ChatGPT can generate text that is similar to existing content, and some users may use this feature to plagiarize content from other sources. Plagiarism is a form of copyright infringement, and it can result in legal action.
  • Unauthorized use of copyrighted material: ChatGPT may generate text that includes copyrighted material, such as quotes from books, movies, or songs. If users use this content without permission, they could be infringing on copyright.
  • Generating derivative works: ChatGPT can be used to generate new content based on existing works, such as fan fiction or remixes of music. However, if the new work is too similar to the original work, it could be considered a derivative work, which would require permission from the copyright owner.
  • Distribution of copyrighted material: ChatGPT can be used to generate text that includes copyrighted material, which could then be shared with others. If this material is shared without permission, it could be considered copyright infringement.

Finally, there is the issue of transparency. AI models like ChatGPT can be complex and difficult to understand, even for experts in the field. This lack of transparency can make it challenging for individuals and organizations to understand how the AI model is making decisions or to identify errors or biases. It is essential that organizations using AI technology are transparent about how their AI models work and are held accountable for their actions. In the US, there is currently no federal law that requires organizations to be transparent about how their AI models work. However, some states, such as California, have passed laws that require companies to disclose if they use bots to interact with customers. (Cal. Bus. & Prof. Code § 17,940).  

One key federal statute related to AI transparency is the Freedom of Information Act (FOIA). FOIA gives members of the public the right to access information held by federal agencies, including information related to AI systems developed or used by those agencies. This can include information about the design, development, and operation of AI systems, as well as the data used to train those systems. FOIA requests related to AI systems can be a powerful tool for promoting transparency and accountability in the use of AI.

Several state laws also address AI transparency and related legal issues. For example, the Illinois Biometric Information Privacy Act (BIPA) requires companies to obtain consent from individuals before collecting or using their biometric data, such as fingerprints or facial recognition data. The law also requires companies to disclose how the data will be used, and to develop and comply with a data retention schedule. These requirements can help to promote transparency and accountability in the use of biometric data by AI systems.

These statutes highlight the importance of transparency and accountability in the development and use of AI systems like ChatGPT. As AI technologies become increasingly prevalent in our daily lives, it is critical that developers, users, and regulators work together to ensure that these systems are designed and used in a way that is fair, transparent, and accountable. This includes providing sufficient information about how AI systems operate, as well as implementing safeguards to prevent discrimination and protect individual rights and privacy.

AI technology has many potential benefits, but there are also several legal implications that must be considered in the context of privacy, discrimination, intellectual property, liability, and transparency. As AI technology continues to advance, it is essential that organizations using the technology are aware of these legal implications and take steps to mitigate any potential risks. This includes complying with relevant privacy laws and regulations, testing AI models for bias, protecting AI-generated intellectual property, addressing liability concerns, and being transparent about how their AI models work. Only by addressing these legal implications can we ensure that AI technology is used ethically and responsibly to the benefit of all.