West Law Today published a really interesting interview with members of the insurance recovery group at Reed Smith. The interview focuses on if general liability insurance covers copyright infringement related to AI content. The interview delves into additional protections under E&O coverage as well as intellectual property liability insurance, especially looking at it from the perspective of an AI company. It is worth the read, especially as things in this sphere get more legally complicated.
When you create a Gen AI output, there is an argument out there that it is on the backs of all the stolen IP that went into the data training set. If the courts agree, then any AI generated commercial products will have to pay whatever licensing fee required by law to “make it whole”, as the legalese goes.
On the other side of the coin, when you create something using Gen AI, the AI generated portions are not copyrightable, and thus anyone can use them without license, watering out your brand. Many companies are not thinking their use of AI through and it may come to bite them in the butt (or bud?) in the end.
PS Gen AI generated art “image motivated by the theme ‘AI Insurance'” brought to you by 2000-era clip art. Seriously? This is what the great AI generates? <yawn>