Headline: IP Exposure Now Part of Any Generative AI Purchase Decision
What is happening? The development of generative artificial intelligence (AI) has made intellectual property exposure a critical consideration for organisations in regulated sectors such as healthcare, insurance, and financial services. This exposure arises from the AI’s ability to create original content that may infringe existing copyrights or trademarks. As a result, companies must carefully evaluate their potential liability before deploying these systems.
Why it demands action now: The organisation’s risk of intellectual property infringement is heightened when purchasing or deploying generative AI solutions without proper validation. This risk can be broken down into capability risk (whether the technology does what was claimed), governance risk (whether the decision can be defended when boards or regulators ask), and liability risk (what the organisation is accountable for if the AI errs). The development sharpens this liability risk, as organisations are held responsible not only for their own content but also for any generated content that infringes on third-party rights.
The action: A prudent organisation takes immediate steps to mitigate this exposure. First, they must assess whether a potential generative AI solution does what was claimed and is fit for purpose in their specific environment. Second, they should evaluate the system’s capability to avoid intellectual property infringement and ensure it aligns with industry standards and regulations. Finally, they should consider implementing measures to monitor generated content and detect potential infringements.
How Straven helps: Straven & Co offers independent validation of AI solutions to help organisations navigate this complex landscape. The firm tests proposed AI against the client’s real operations, people, governance obligations, legal exposure, and vendor claims, delivering a plain verdict – proceed, proceed with conditions, or do not. This independence is essential in assessing generative AI capabilities, as Straven does not have any product to sell and earns nothing by recommending more solutions.