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Law


Hand-in-hand with Policy and (Geo)Politics, the legal ramifications of AI technology are having to be understood and enshrined in law as swiftly as possible. It inevitably is a game of ‘catch up’ given the breakneck speed of technological development and the very significant implications on all areas of society, but consensus seems to be appearing both nationally and internationally.

This section, like others, is a high-level overview of some of the current areas of focus and the frameworks that are being put into place. It should go without saying that this section is not a source of legal advice but instead serves only to highlight some of the areas where AI and the law intersect.

Click on the section titles below to read more. Relevant links in the footnotes (‘References’), although NB some are behind paywalls.



International Legal Frameworks

Global Governance Structures

  • Framework Development: The rapid evolution of AI technology is driving the creation of new international legal structures. These frameworks must balance innovation with risk mitigation, drawing lessons from existing international bodies like the IAEA and Geneva Convention while addressing the unique challenges posed by AI’s pervasive nature1.
  • Standards Implementation: International standards are emerging as crucial tools for AI governance:
    • Technical Standards: The BSI AI management system (BS ISO/IEC 42001) provides a foundation for operational guidelines, offering organisations concrete frameworks for responsible AI development and deployment. This system is becoming increasingly important as more countries adopt standardised approaches to AI governance2.
    • Geopolitical Challenges: The rise of AI nationalism and potential “tech cold wars” complicates international cooperation. These tensions require careful diplomatic navigation while maintaining robust protection of intellectual property and critical AI assets3.

Enforcement Mechanisms

Regulatory Oversight

  • Existing Legal Frameworks: Currently, AI-related disputes are primarily handled within existing legal frameworks and courts, such as those dealing with intellectual property, commercial law, and administrative law. These courts are increasingly relying on expert witnesses and specialised judges with knowledge of AI to navigate complex cases4.

  • Emerging Institutional Structures: Governments and international bodies are actively working to develop new institutional structures for AI oversight. This includes:

    • Regulatory Bodies: Existing regulatory bodies, such as the Information Commissioner’s Office (ICO) in the UK, are expanding their remit to cover AI systems within their respective domains5.
    • Centralised Functions: Some countries are establishing central functions to support regulators in understanding AI risks and conducting risk assessments6.
    • International Collaboration: Cross-border cooperation is increasing, with countries working together to share information, develop standards, and address global AI challenges. Examples include the Global Partnership on Artificial Intelligence (GPAI) and the OECD’s AI Policy Observatory7 8, which will soon merge.

Compliance Frameworks

  • Implementation Guidelines: Practical frameworks for legal compliance are developing:
    • Audit Requirements: Organisations must meet new standards for AI system auditing. These requirements ensure accountability while promoting responsible innovation9.
    • Documentation Standards: Legal requirements for AI system documentation are becoming more stringent. These standards support both compliance and innovation10.

Liability and Accountability

Legal Responsibility

  • Attribution Challenges: The increasing autonomy of AI systems raises complex questions about legal liability:
    • Chain of Responsibility: Determining accountability when AI systems cause harm involves multiple parties, from developers and deployers to users and oversight bodies. This complexity requires new legal frameworks that can appropriately assign responsibility across the AI development and deployment chain11.
    • Insurance Implications: The insurance industry is developing new models to address AI-related risks. These developments are shaping how businesses approach AI deployment and risk management12.

Professional Liability

  • Practitioner Responsibility: The use of AI in professional services raises new liability questions:
    • Medical Practice: Healthcare providers using AI for diagnosis and treatment face new liability considerations. These challenges require balancing the benefits of AI assistance with professional judgment and responsibility13.
    • Legal Practice: Lawyers using AI tools must navigate new professional responsibility requirements. This includes ensuring accuracy and maintaining ethical standards while leveraging AI capabilities14.

Intellectual Property Rights

Copyright Protection

  • Creative Works: AI’s ability to generate and modify content raises fundamental questions about copyright:
    • Artist Rights: Creative professionals are seeking new legal protections as AI systems increasingly use existing works for training. This includes concerns about fair compensation and attribution for works used in AI training15.
    • Training Data Rights: The legal status of data used for AI training is becoming increasingly contentious. Recent cases have begun establishing precedents for how training data should be handled under copyright law16.

Proprietary Technology

  • Model Protection: Safeguarding AI innovations requires new legal approaches:
    • Weight Protection: The protection of model weights and architecture represents a new frontier in intellectual property law. This includes developing new mechanisms for securing these valuable assets while promoting innovation17.
    • Trade Secret Application: Traditional trade secret law is being adapted to protect AI innovations. These adaptations must balance intellectual property protection with the need for transparency and accountability18

Data Protection and Privacy

Privacy Framework Evolution

  • Regulatory Adaptation: Existing privacy laws are being updated to address AI-specific challenges:
    • GDPR Enhancement: The European privacy framework is evolving specifically to address AI capabilities and risks. These adaptations include new provisions for automated decision-making and profiling that go beyond traditional data protection concerns19.
    • International Alignment: Different jurisdictional approaches to AI privacy are creating challenges for global operations. Companies must navigate complex compliance requirements across multiple regulatory regimes, leading to the development of new global privacy standards20.

Individual Rights

  • Data Subject Protections: New rights are emerging specific to AI contexts:
    • Algorithmic Transparency: Individuals are gaining rights to understand how AI systems use their data and make decisions. This includes the right to meaningful explanations of automated decisions affecting their lives21.
    • AI Profiling Controls: Enhanced protections against AI-powered profiling are being developed. These controls give individuals greater agency over how their personal data is used in AI systems22.

Content Authentication

Digital Watermarking

  • Authentication Technologies: New systems for identifying AI-generated content are emerging:
    • C2PA Implementation: The Coalition for Content Provenance and Authenticity (C2PA) is establishing industrial standards for content authentication. These standards are becoming increasingly crucial as AI-generated content becomes more sophisticated and prevalent23.
    • Platform Integration: Major platforms are implementing content authentication systems:
      • TikTok’s voluntary labeling system provides a model for platform self-regulation
      • Google’s SynthID demonstrates advanced watermarking capabilities that resist modification
      • Industry-wide initiatives are creating shared standards for content authentication24

Verification Systems

  • Legal Requirements: New laws are mandating content verification:
    • Electoral Integrity: Special provisions for political content and campaign materials are being developed. These regulations aim to preserve democratic processes in the age of AI-generated content25.
    • Commercial Disclosure: Legislation is gradually catching up with the technology and specifically the British Government is working on a framework for AI regulation as part of its Artificial Intelligence (Regulation) Bill. This legislation should come into law in 202526.

Global AI Governance and Regulatory Landscape

  • EU AI Act Implementation: The EU’s landmark AI regulation is being rolled out in phases, setting a global benchmark for AI governance. From 2 February 2025, prohibitions on certain AI practices considered high-risk have been enforced, along with general provisions on scope and definitions. Provisions for general-purpose AI models and governance structures will apply from 2 August 2025, including rules for foundation models underpinning many generative AI systems27.
  • UK’s Sector-Specific Approach: The UK is diverging from the EU’s centralised model, opting for a sector-specific regulatory strategy. Regulators like the FCA, PRA, CMA, and ICO are tasked with balancing AI innovation and compliance enforcement, and the Government plans to fund AI capability enhancement for UK regulators and incentivise safe AI deployment in regulated sectors27.

Compliance Frameworks and Liability

  • AI Compliance Challenges: Experts predict escalating AI compliance and security challenges by 2025, particularly as new frameworks emerge. Businesses are expected to face difficulties in adapting to evolving AI regulations and privacy laws, whilst being compelled to implement new processes and tools for system audits, data protocols, and AI monitoring to ensure compliance28.
  • Liability and Risk Management: The legal landscape for AI liability is evolving, with implications for businesses deploying AI systems. Companies are advised to establish robust internal governance policies to manage risks associated with AI and guard against potential litigation[6] – and there’s an increasing focus on transparency and accountability in AI decision-making processes to mitigate legal risks28.

Data Protection and Privacy Developments

  • GDPR and AI: The intersection of AI and data protection regulations is becoming more complex. Key principles for AI GDPR compliance include data minimisation, purpose limitation, security, and transparency in AI decision-making. Furthermore, organisations must conduct Data Protection Impact Assessments (DPIAs) for high-risk AI processing and maintain clear audit trails of data movements29.
  • Global Privacy Trends: AI is shaping privacy regulations worldwide, with various countries adopting or proposing AI-specific frameworks. The growing importance of AI in the global economy has increased the need for aligned regulatory standards. As a result, countries like Canada, Australia, Brazil, and Singapore are adopting risk-based AI regulations similar to those used by the European Union30.

Intellectual Property Rights in AI

  • AI-Generated Content: The legal status of AI-created works is an evolving area of intellectual property law. Debates (and cases) continue on copyright protection for AI-generated content and the attribution of ownership, and companies are advised to stay informed about potential copyright infringement risks when using AI-generated materials31.
  • Patent Considerations: The patentability of AI innovations is becoming a key focus in intellectual property discussions and legal frameworks are being developed to address the unique challenges posed by AI in patent law, including issues of inventorship and novelty. In mid 2025, the UK Supreme Court is set to hear an appeal on the Emotional Perception patent case, which will address the patentability of AI inventions32.

References

  1. Artificial intelligence and the challenge for […] (Chatham House, Jun 24)

  2. Artificial Intelligence: Launching BS ISO/IEC 42001 (BSI, 2024)

  3. AI Nationalism(s): Global Industrial Policy […] (AI Now Institute, Mar 24)

  4. Thaler v The Comptroller- […] (England and Wales High Court (Patents Court), 2020)

  5. Our work on Artificial Intelligence (ICO)

  6. Generative AI Framework for HMG (UK Govt, Jan 24)

  7. Global Partnership on Artificial Intelligence

  8. OECD.AI

  9. AI Safety Institute (UK)

  10. European Union AI Act

  11. Advancing accountability in AI (OECD, Feb 23)

  12. ABI launches new guide to help firms […] (ABI, Feb 24)

  13. Ethical and legal challenges of artificial […] (National Library of Medicine, Jun 20)

  14. Risk Outlook report: The use of artificial […] (Solicitors Regulation Authority, Nov 23)

  15. Open consultation: Copyright and Artificial Intelligence (UK Govt, Dec 24)

  16. Open consultation: Copyright and Artificial Intelligence (UK Govt, Dec 24)

  17. Artificial Intelligence in Intellectual Property […] (ResearchGate, March 24)

  18. AI and the implications of reverse engineering (CMS, Dec 18)

  19. EDPB opinion on AI models: GDPR […] (European Data Protection Board, Dec 24)

  20. Recommendation of the Council on Artificial […] (OECD Legal Instruments, May 24)

  21. Transparency and accountability in AI […] (Frontiers in Human Dynamics, Jul 24)

  22. What does the UK GDPR say about […] (Information Commissioner’s Office (UK))

  23. The Coalition for Content Provenance and Authenticity

  24. Digital watermarking (Wikipedia)

  25. New advice for voters on disinformation, and for […] (Electoral Commission, June 24)

  26. AI law, regulation and policy – highlights […] (Burges Salmon, Dec 24)

  27. Artificial Intelligence UK Regulatory Outlook […] (Osborne Clarke, Jan 25)

  28. 2025 Informed: scaling responsible AI in […] (Tech Informed, Jan 25)

  29. How AI GDPR Will Shape Privacy Trends in 2025 (GDPR Local, Jan 25)

  30. Looking ahead: Global AI governance takes shape […] [Kennedy’s, Dec 24)

  31. AI and copyright: U.K. launches broad consultation […] (A&O Shearman, Dec 24)

  32. Emotional Perception AI to go to the UK Supreme Court (Bird & Bird, Dec 24)