Mealey's Artificial Intelligence : Mealey's : Legal News & Analysis

Mealey's Artificial Intelligence

January 10, 2024
Pennsylvania, OpenAI Partnership Puts AI In Administrative Office

HARRISBURG, Pa. — Pennsylvania will employ an enterprise version of ChatGPT for use in its Office of Administration, Gov. Josh Shapiro said Jan. 9 in what a press release called a “first-in-the-nation” pilot program.
January 10, 2024
FTC Warns Of Potential Privacy Pitfalls For AI Companies

WASHINGTON, D.C. — The Federal Trade Commission in a Jan. 9 announcement reminded artificial intelligence companies that they could face regulatory actions if their large language models’ (LLM) voracious demand for data tramples obligations to protect users’ data and privacy, either through the improper use of data or how the company handles representations about what it does with the data.
January 09, 2024
Microsoft, OpenAI Face Journalists’ Suit Over AI Training

NEW YORK — Microsoft Corp. and various OpenAI are no better than any run-of-the-mill thief after they “systematically pilfered” copyrighted works despite enjoying both the means and ability to pay, two journalists allege in a class action filed in federal court in New York.
January 04, 2024
In AI Information Request Case, Justice Upholds ‘Snail Mail’ Appeal Rule

NEW YORK — Even in an era where parties communicate through email about appeals in a case requesting information about an transportation agency’s utilization of artificial intelligence, the government can still require that the actual appeal be filed through traditional mail services, a New York justice said in denying relief in a Freedom of Information Law (FOIL) case.
January 02, 2024
AI Generated Fake Cites, Trump-Adjacent Attorney Michael Cohen’s Lawyer Says

NEW YORK — While attempting to secure an early exit from supervised release, Michael Cohen used fake cites he found through Google Inc.’s Bard without realizing that the program was not a “super-charged” search engine but rather a generative artificial intelligence prone to error, according to a letter response filed by Cohen’s lawyer in the U.S. District Court for the Southern District of New York.
January 02, 2024
Latest AI Copyright Suit Sees New York Times Target Microsoft, OpenAI

NEW YORK — The New York Times Co. (NYT) sued ChatGPT owners Microsoft Corp. and various OpenAI entities for copyright infringement, saying there is nothing transformative about using valuable and protected materials to create a substitute product.
January 02, 2024
Committee Gets OK For Vote On Liquidation Plan In Vesttoo Chapter 11 Cases

WILMINGTON, Del. — A Delaware federal bankruptcy judge who is allowing the Official Committee of Unsecured Creditors to put its Chapter 11 plan of liquidation for Vesttoo Ltd. and 48 affiliates to a vote also granted its motions for leave to conduct discovery against two banking organizations.
December 22, 2023
Former Governor, Others Sever, Transfer, Dismiss Portions Of AI Copyright Suit

NEW YORK — Former Arkansas Gov. Mike Huckabee and other copyright holders who filed suit over the use of their works to train artificial intelligence told a federal judge in New York that they reached an agreement to dismiss one defendant and sever and transfer their claims against Microsoft Corp. and Meta Platforms Inc. to a federal court in California and said they would not oppose a fourth defendant’s motion to stay discovery while the court resolves pending motions.
December 20, 2023
FTC Places 5-Year Ban On Rite Aid Using AI Facial Recognition Software

WASHINGTON, D.C. — Rite Aid Corp.’s artificial intelligence facial recognition software generated thousands of false matches, often targeting women or people of color, the Federal Trade Commission said Dec. 19 in announcing that it was imposing a five-year ban on the retailer’s use of the technology.
December 19, 2023
Study: AI Outperforms Human Clinicians In Limited Settings

BOSTON — Large language model (LLM) artificial intelligence (AI) ChatGPT-4 performed better than humans at diagnosing five diseases in pre- and post-test situations, but only when the test results were negative, according to a new peer-reviewed study released on the JAMA Network.
December 19, 2023
Unsecured Creditors Update Proposed Liquidation Plan In Vesttoo Chapter 11 Cases

WILMINGTON, Del. — The Official Committee of Unsecured Creditors on Dec. 18 filed an amended proposed combined disclosure statement and Chapter 11 plan of liquidation for the jointly administered cases of Vesttoo Ltd. and 48 affiliates in Delaware federal bankruptcy court.
December 15, 2023
RIAA To High Court: Use Equitable Tolling For ‘Black Box,’ AI-Based Infringement

WASHINGTON, D.C. — In one of eight amicus curiae briefs filed in a dispute over the discovery accrual rule in the context of copyright infringement, the Recording Industry Association of America (RIAA) urges the U.S. Supreme Court to clarify that equitable tolling applies to the Copyright Act’s three-year limitations period when the infringement “is undetectable as a practical matter.”
December 15, 2023
Plaintiffs: Humana Uses Artificial Intelligence, Denies Senior Care In Bad Faith

LOUISVILLE, Ky. — Humana Inc. denies elderly patients Medicare Advantage Plan coverage to which they are entitled through the employment of artificial intelligence in place of actual doctors, plaintiffs claim in a class action filed in a Kentucky federal court.
December 14, 2023
Journalist Says Government Can’t Defend Withholding FOIA AI Documents

WASHINGTON, D.C. — No statutory or logical basis prevents the Department of Defense (DOD) from releasing 5,000 documents it concedes are responsive to a Freedom of Information Act (FOIA) inquiry about Google Inc.’s role in the Project Maven artificial intelligence program, a journalist tells a federal judge in the District of Columbia in a cross-motion and opposition to summary judgment.
December 14, 2023
Israeli Law Raised In Feedback On Liquidation Plan For Vesttoo And Its Affiliates

WILMINGTON, Del. — In two Dec. 13 filings citing Israeli law and other issues, Vesttoo Ltd. and its affiliated debtors and a venture capital organization and individual that report significant related interests urge a Delaware federal bankruptcy court not to approve a Chapter 11 plan of liquidation and related arrangements as currently proposed.
December 13, 2023
Authors Amend Copyright Claim Against Meta For Using Books To Train AI

SAN FRANCISCO — Three weeks after a California federal judge called their theory of copyright infringement “nonsensical,” 13 authors filed an amended putative class complaint against Meta Platforms Inc. dropping all claims except for a direct copyright infringement claim against Meta for using their copyrighted works to train its AI chatbots.
December 12, 2023
State Court Hears Arguments On Motion To Dismiss In ChatGPT Defamation Case

ATLANTA — A Georgia state court held a hearing on a OpenAI LLC’s motion to dismiss defamation claims against it over ChatGPT content naming a journalist as a defendant in a financial misconduct case to which he was not a party.
December 12, 2023
SEC Says AI Startup Is Wrong To Call False Statements About Legality Unactionable

ORLANDO, Fla. — An artificial intelligence startup and its founder are incorrect to say the Securities and Exchange Commission’s complaint against them are based on unactionable statements, the SEC says in a Dec. 11 memorandum filed in a federal court in Florida in opposition to the motion to dismiss, saying the complaint sufficiently alleges that the company and its founder lured investors with false promises of early access to profits from an AI “ecosystem.”
December 12, 2023
Parties To AI Rental Price Antitrust Suit Brief Recent Precedent

NASHVILLE, Tenn. — With a motion to dismiss fully briefed and the United States filing a notice of interest in a case alleging antitrust violations stemming from the use of algorithmic and artificial intelligence-based rental pricing software, the parties briefed a federal judge in Tennessee on the impact of recent Fourth Circuit U.S. Court of Appeals precedent governing the requirements for antitrust claims.
December 12, 2023
Washington High Court Seeks Comments On Attorney Training, Including AI Chatbot Use

SEATTLE — The Washington Supreme Court asked for comments about proposed amendments to the state’s continuing legal education system involving legal technology, including the handling and use of artificial intelligence chatbots.
December 12, 2023
Judge Stays Discovery In Case Alleging AI Founder Was Tricked Into Selling Stake

SAN FRANCISCO — A federal judge in California stayed discovery pending resolution of a motion to dismiss in a man’s case claiming that he was tricked into believing that his stake in an artificial intelligence company was worthless.
December 07, 2023
COMMENTARY: Fire & Rain: 2023 Key Decisions & Developments Impacting The Wide World Of Insurance

By Scott M. Seaman, Pedro E. Hernandez and Lisa M. Roccanova
December 01, 2023
Shareholders: Lending Platform Misconstrues Judge’s Order In Motion To Reconsider

CINCINNATI — A lending platform and certain related defendants, accused by shareholders of making inaccurate claims about the platform’s use of artificial intelligence to approve loans, indicated in a notice in an Ohio federal court no opposition to several investment funds’ motion to intervene in the suit, a day after the shareholders filed a memorandum in opposition to the lending platform’s motion to reconsider an order partially dismissing the suit.
December 01, 2023
AI Music Copyright Defendant Says Tennessee Jurisdiction Strikes Wrong Beat

NASHVILLE, Tenn. — In a motion to dismiss, artificial intelligence company Anthropic PBC told a federal court in Tennessee that a copyright suit was a “negotiating tactic disguised as a federal court complaint” with no connection to the jurisdiction and that at the very least, the action should be transferred to California, where almost all of the parties reside.
November 30, 2023
In GitHub AI Copyright Suit, Parties Told To Meet, Confer Not Move To Compel

SAN FRANCISCO — While a California federal court mulls a second round of motions from OpenAI Inc., GitHub Inc. and Microsoft Corp. seeking dismissal of claims under the Digital Millennium Copyright Act (DMCA) and California’s unfair competition law (UCL) related to allegations of improper attribution in the development of an artificial intelligence tool, a magistrate judge denied the plaintiffs’ motion to compel discovery responses in favor of a directive for the parties to meet and confer about discovery disputes.