KPMG Legal Reimagined outlines the primary legal, regulatory, and ethical risks associated with organizations utilizing AI. Key themes and takeaways:
- Regulatory Landscape: Laws vary; the EU has the AI Act with strict requirements, while the UK is using decentralized, principle-based oversight.
- Ethical Considerations: Focus on transparency, explainability, bias, and fairness. Ethics boards are used to oversee these issues.
- Third-Party Risk: AI risk extends to suppliers; due diligence and contracts are vital.
- Data Protection: Personal data must always comply with laws like GDPR; clear privacy notices are mandated.
- AI and Copyright: Tension exists between using AI and creative industries’ rights; guidelines limit how legal data and generative AI can be used.
- Pace of Change: Rapid AI advancements challenge legal professionals to keep up with new technologies and laws.
- Opportunities for Legal Teams: AI can improve legal workflows and create new skill needs; leaders should plan for evolving roles and tech adoption.