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Navigating the Legal Landscape of AI: Essential Laws and Regulations Across Industries

Writer's picture: Lisa Anugwom NarhLisa Anugwom Narh

Artificial Intelligence is transforming industries, from healthcare and finance to entertainment and social media. However, with its rapid rise comes a growing set of legal concerns. From copyright issues to data privacy, the use of AI raises important questions about ownership, consent, and ethical usage.


One particularly sensitive issue is the use of images of individuals to portray messages they have not agreed with. This raises both ethical and legal concerns that content creators, marketers, and businesses need to be aware of to protect themselves and others.


In this blog, we’ll explore the key laws and regulations governing the use of AI across industries and how individuals and organizations can protect their work, their data, and their reputation while navigating this evolving space.


Who Owns AI-Generated Content?



One of the biggest legal questions surrounding AI is ownership. Who owns the output of AI systems, especially when it involves creative work? The answer varies depending on the jurisdiction, but most laws emphasize the need for human authorship to qualify for intellectual property protection.


Ownership of AI-Generated Works in the U.S.


In the United States, the U.S. Copyright Office has stated that AI-generated content cannot be copyrighted unless it involves significant human involvement. For example, if you prompt an AI to create an image or write a story and then refine or edit it, you may claim copyright protection for the parts you contributed. However, purely AI-generated works without human authorship are generally not eligible for copyright.


This ruling has significant implications for anyone using AI to create content. It means that your AI-generated work may be legally unprotected, leaving it vulnerable to use by others without your consent.


The Use of Personal Images in AI-Generated Content



One of the most concerning areas in AI is the use of people’s images or likenesses to create content without their consent. This issue is becoming more prominent as AI tools become more sophisticated in generating realistic images, videos, and voice clones.


For example, some AI tools allow users to create deepfake videos or images that portray real people saying or doing things they have never agreed to. This can result in serious harm to the individual’s reputation, privacy, and safety.


Legal Risks of Using AI to Portray Someone Without Consent


In many countries, using someone’s image or likeness without permission can result in legal consequences, especially if it causes harm or misrepresents their views.


• Right of Publicity Laws: In the U.S., individuals have a right of publicity, which gives them control over how their name, image, or likeness is used commercially. If you use someone’s likeness in an AI-generated ad or video without their permission, you may be violating their right of publicity.


• Defamation and False Light Claims: If an AI-generated image or video portrays someone in a way that is damaging to their reputation, the individual may be able to sue for defamation or false light, depending on the jurisdiction. These laws protect people from being falsely represented in a way that causes harm to their character.


Important Note: Even if you use publicly available images, consent is still required to use someone’s likeness for a purpose they haven’t agreed to, particularly in commercial or controversial contexts.


Data Privacy and AI: What You Need to Know


AI systems rely heavily on data to function. This data often includes personal information, making it essential to understand and comply with data protection laws when using AI.


GDPR (General Data Protection Regulation)


In the European Union, GDPR is one of the most comprehensive data privacy laws. It requires organizations to process personal data lawfully, transparently, and for a specific purpose. This means that if you are using AI to process personal data, including images or voice recordings, you must have a legal basis for doing so and inform individuals how their data is being used.


Violating GDPR can result in substantial fines and damage to your reputation.


CCPA (California Consumer Privacy Act)


In the U.S., CCPA grants California residents rights over their personal data, including the right to know what data is being collected and how it is used. Businesses using AI tools to target California residents must comply with CCPA requirements, especially when processing sensitive personal data.


Industry-Specific Regulations on AI Use


Different industries face unique challenges when it comes to using AI responsibly and legally. Here’s a breakdown of some key industry-specific regulations to be aware of.


Healthcare


In healthcare, AI is often used for diagnostics, treatment planning, and administrative tasks. HIPAA (Health Insurance Portability and Accountability Act) in the U.S. governs the privacy and security of patient information, which must be protected when using AI in healthcare settings.


Finance


Financial institutions using AI for decision-making, such as credit scoring and fraud detection, must comply with laws like the Fair Credit Reporting Act (FCRA) to ensure fairness and transparency in their processes.


Entertainment and Media


In the entertainment industry, the use of AI to generate content, including deepfakes, raises significant legal questions. Using a celebrity’s likeness to create an AI-generated ad or film without their consent would likely result in a right of publicity violation, even if the image was publicly available.


Protecting Yourself and Your Work When Using AI


Given the evolving legal landscape, here are some best practices to help you protect yourself and your work when using AI.


1. Obtain Consent for Personal Images and Likenesses


Never use someone’s image or likeness in AI-generated content without their explicit permission. This applies to photos, videos, and even voice recordings. Always ensure you have the necessary clearances to avoid legal trouble.


2. Secure Licenses for Third-Party Content


If you use third-party images, text, or music to train AI models or generate content, make sure you have the proper licenses. Unauthorized use of copyrighted material can result in copyright infringement claims.


3. Implement Data Governance Policies


Establish data governance policies to ensure you are handling personal data ethically and in compliance with privacy laws. This includes documenting how data is collected, processed, and protected.


4. Add Human Input to AI-Generated Works


To strengthen your copyright claims, ensure that your AI-generated content includes significant human input. This could mean refining, editing, or directing the AI’s output to create a final product that demonstrates human authorship.


5. Stay Informed on Legal Developments


AI laws and regulations are constantly evolving. Stay updated on new legal developments to ensure you are operating within the legal framework. Following reliable legal sources and consulting with intellectual property lawyers can help you stay ahead of potential legal risks.


Navigating AI Laws with The 2 AM Code


As you navigate the complex world of AI, it’s essential to remember that boundaries protect both your work and your reputation. Just as The 2 AM Code teaches individuals to set personal boundaries, the same principle applies when using AI.


Respect the boundaries of others by obtaining consent, protecting personal data, and staying within the legal limits of what AI can and cannot do. Doing so ensures that your creative work remains ethical, protected, and impactful.


Your ideas deserve to be protected. Your reputation deserves to be respected. And with the right knowledge, your work can thrive in an AI-driven world.


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