Why AI Vendor Due Diligence Matters # Selecting an AI vendor isn’t like choosing traditional software. When you deploy a third-party AI system, you’re not just buying a product, you’re inheriting its biases, its security vulnerabilities, its training data decisions, and potentially its legal liabilities.
Why AI Governance Policies Matter # Every organization using AI needs a governance framework. Without one, AI deployment decisions happen ad hoc, different teams use different standards, risks go unassessed, and accountability is unclear.
As AI systems become integral to commerce, healthcare, and daily life, jurisdictions worldwide are racing to establish regulatory frameworks. The approaches vary dramatically, from the EU’s comprehensive risk-based legislation to the UK’s sector-specific principles, from China’s content-focused rules to Canada’s failed attempt at comprehensive AI law. Understanding these frameworks is essential for any organization deploying AI across borders.
Beyond Sanctions: The Malpractice Dimension of AI Hallucinations # Court sanctions for AI-generated fake citations have dominated headlines since Mata v. Avianca. But sanctions are only the visible tip of a much larger iceberg. The deeper exposure lies in professional malpractice liability, claims by clients whose cases were harmed by AI-generated errors that their attorneys failed to catch.
The $2 Trillion Question # Robo-advisers now manage over $2 trillion in assets globally, with the U.S. market alone exceeding $1.6 trillion. Major platforms like Vanguard Digital Advisor ($333B AUM), Wealthfront ($90B), and Betterment ($63B) serve millions of retail investors who trust algorithms to manage their retirement savings, college funds, and wealth accumulation strategies.
The Paradigm Shift # For decades, software developers enjoyed a shield that manufacturers of physical products never had: software was generally not considered a “product” subject to strict liability under U.S. law. If software caused harm, plaintiffs typically had to prove negligence, that the developer failed to exercise reasonable care.
The Autonomous Agent Challenge # AI systems are evolving from tools that respond to prompts into agents that act autonomously. These “agentic” AI systems can browse the web, execute code, manage files, schedule appointments, negotiate purchases, and even enter contracts, all without human intervention at each step.
The Copyright Battle Over AI # At the heart of modern AI development lies a legal question worth billions: Can AI companies use copyrighted works to train their models without permission or payment?
The New Frontier of Defamation Law # Courts are now testing what attorneys describe as a “new frontier of defamation law” as AI systems increasingly generate false, damaging statements about real people. When ChatGPT falsely accused a radio host of embezzlement, when Bing confused a veteran with a convicted terrorist, when Meta AI claimed a conservative activist participated in the January 6 riot, these weren’t glitches. They represent a fundamental challenge to defamation law built on human publishers and human intent.
The Central Question # Does Section 230 of the Communications Decency Act:“the 26 words that created the internet”, protect AI companies from liability for content their systems generate?
The Healthcare AI Denial Crisis # When artificial intelligence decides whether your health insurance claim is approved or denied, the stakes are life and death. Across the American healthcare system, insurers have deployed AI algorithms to automate coverage decisions, often denying care at rates far exceeding human reviewers. The resulting litigation wave is exposing how AI systems override physician judgment, ignore patient-specific circumstances, and prioritize cost savings over medical necessity.
The Biometric Privacy Litigation Explosion # Biometric data, fingerprints, facial geometry, iris scans, voiceprints, represents the most intimate form of personal information. Unlike passwords or credit card numbers, biometrics cannot be changed if compromised. This permanence, combined with the proliferation of facial recognition technology and fingerprint authentication, has triggered an unprecedented wave of privacy litigation.