Protecting Your Business from Costly Legal Pitfalls and Setting Yourself Up for Success
Protecting Your Business from Costly Legal Pitfalls and Setting Yourself Up for Success
AI tools that communicate with consumers can inadvertently create enforceable contracts or make binding promises on behalf of your company. Unlike human employees who understand context and limitations, AI systems can overstep.
Such corporate liability for AI actions stems from the fact that AI will be considered an agent for your business in most cases under the doctrine of apparent authority. This means that AI system interactions with employees, customers, or vendors can be legally binding for your company.
This is not to say AI cannot be a great tool for business, but you must ensure your use is not exposing your company to liability. Employment lawyers understand these nuances and can help structure your AI implementations to avoid unintended legal consequences.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007