AI and the Law: Navigating Legal Risks in Content Creation

Understanding generative AI and its legal implications

The use of generative AI (GenAI) to automate content creation has gained popularity in the enterprise, bringing greater productivity and personalization. While generative AI opens doors for streamlined content creation, it also presents unique legal challenges. AI laws and regulations are emerging to try and tackle issues around copyright risks, data privacy compliance, and bias in AI-generated outputs. 

This blog will cover these legal implications, provide insights into new and upcoming AI regulations, and share best practices for using generative AI in ways that comply with both current laws and emerging regulatory standards.

What is generative AI?

Generative AI refers to a subset of AI systems that create new content based on patterns from existing data. Using advanced models like GPT-4 and DALL-E, generative AI can automate various content creation tasks such as writing, image generation, and data analysis. By identifying and emulating patterns in data, generative AI powers applications in digital marketing, enterprise content creation, and customer service, offering significant time savings and personalization benefits.

However, this pattern-based approach can also reproduce biases and create issues around copyright and intellectual property (IP) rights. To navigate these challenges, companies using generative AI for content creation should understand the risks associated with AI outputs and stay updated on changing regulations.

Legal risks of AI-generated content

Key AI laws and regulations impacting content creation

The regulatory environment for AI is advancing, with the EU Artificial Intelligence Act (AI Act) leading the charge. Passed by the European Parliament in 2024, the AI Act is the first comprehensive AI regulation and categorizes AI models by risk level, requiring documentation, transparency, and safety measures for high-risk and general-purpose models. Generative AI systems used in content creation often fall under these guidelines, necessitating compliance through transparent labeling, data disclosure, and watermarking AI-generated outputs.

The US has been actively proposing new AI regulations. A recent executive order on “safe and secure AI use” encourages oversight and transparency in AI content generation. Although comprehensive AI regulation hasn’t yet passed, guidelines from bodies like the Federal Trade Commission (FTC) on privacy, truth in advertising, and transparency already apply to AI-generated content in various ways.

Data privacy laws

Data privacy remains a significant concern with AI-generated content. Laws like the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the US require careful handling of personal data, including restrictions on using user data to train AI models without clear consent. For generative AI applications that rely on consumer data to improve personalization, compliance with these privacy laws is critical to avoid penalties.

Copyright and IP laws

Copyright and intellectual property concerns are among the top legal risks for AI-generated content. In the US, the Copyright Office has stated that AI-generated content cannot qualify for copyright protection unless a significant human element is involved. Organizations must address legal questions about who owns, uses, and is responsible for AI-created content, especially in creative industries that depend on original IP.

Upcoming AI-specific regulations

Cross-border compliance

Cross-border compliance is a key area of focus as countries develop their own AI-specific laws. The EU’s AI Act sets a high standard for transparency and labeling of AI-generated content, including requirements for clear documentation and potential watermarking. While the US. hasn’t implemented a nationwide AI law, several states are developing regulations that mirror the EU’s focus on transparency, privacy, and anti-discrimination in AI systems.

To navigate cross-border compliance, multinational enterprises should build a generative AI governance structure that accommodates regional differences. Understanding and adapting to regulatory variations will enable companies to safely and effectively deploy generative AI technology globally.

Future regulatory trends

Regulatory trends indicate that AI transparency and ethical use will soon be central to AI-specific legislation. For example, watermarking requirements for AI-generated content in the EU’s AI Act may set a precedent that influences US lawmakers. Advertising teams and content creators may soon have to clearly disclose AI involvement in their materials. This practice can help manage legal risk and align with consumer preferences for transparency.

How to make sure AI content creation is compliant

Conduct legal audits of AI models

Conducting legal audits of AI models is essential for staying compliant with privacy, copyright, and anti-bias regulations. Regular audits allow compliance teams to review the accuracy, transparency, and ethical implications of AI-generated outputs, identifying risks before they reach consumers. With AI regulations constantly evolving, frequent legal assessments can help companies remain compliant and avoid legal complications.

Ensure transparent AI workflows

Transparency is a cornerstone of compliant AI content creation. To meet consumer expectations and comply with regulations, businesses should clearly label AI-generated content and cite the sources and training methods of their models. Transparency not only aids in compliance but also helps maintain trust with audiences by openly sharing how AI contributes to their experiences.

Monitor for bias and accuracy

Because generative AI systems learn from training data, they can replicate and even amplify biases present in that data. Routine checks for bias are therefore critical for companies using AI in content creation. Bias monitoring tools can help identify unintended discrimination or favoritism in AI outputs, allowing teams to adjust their workflows to meet ethical and regulatory standards.

End with human oversight

Though AI can accelerate content creation, human oversight remains crucial. A human review process makes sure that AI outputs align with the company’s values, accuracy standards, and compliance requirements. By involving editors or reviewers to check AI-generated content, companies can prevent biases, errors, and non-compliance from reaching their audiences.

Best practices for mitigating legal risks in AI content creation

Loop in legal and compliance teams early

Legal and compliance teams are essential partners in integrating generative AI into content workflows. By involving these teams early in the AI adoption process, businesses can establish policies that meet regulatory standards. Legal experts can help identify potential risks and set guidelines to ensure generative AI applications remain compliant with existing and emerging laws.

Implement AI governance tools

AI governance tools offer invaluable support in meeting compliance standards for transparency, inclusivity, and data protection. Tools like Acrolinx provide checks for regulatory adherence, detecting bias, ensuring inclusivity, and monitoring the impact of AI outputs. Integrating governance tools in AI workflows helps companies proactively detect risks and maintain best practices in AI content generation.

Stay informed on AI regulations

As AI regulations evolve rapidly, staying informed is essential for maintaining compliance. Regularly updating teams on new regulations and guidelines allows organizations to anticipate changes and incorporate recommendations. Subscribing to industry publications, joining AI forums, and consulting with regulatory experts will help companies navigate the regulatory landscape as it develops.

Create clear AI usage documentation

Documenting AI practices is critical for compliance and provides a valuable audit trail if questions arise. Good documentation shows how AI is trained, where the data comes from, and how content is reviewed. This demonstrates that the company is committed to being transparent and compliant. This documentation supports internal evaluations and promotes consistency across projects, providing a strong foundation for compliant AI usage.

Acrolinx: AI guardrails to reduce risk in AI-generated content

Acrolinx is an AI-powered content governance software that provides guardrails to safeguard your content against the risks of AI-generated content. Through Acrolinx, companies gain control over generative AI’s output by embedding strict quality and compliance criteria directly into the content creation process. This includes providing immediate guidance and instant, clickable suggestions that align with each organization’s unique style and legal requirements, helping to mitigate risks of bias, misinformation, and non-compliance​​.

By automating these checks, Acrolinx offers businesses the capacity to produce high volumes of content without compromising on quality, thus fulfilling both productivity and compliance in AI-supported content supply chains.