Artificial intelligence (AI) as a growth and innovation driver
Artificial intelligence, and generative AI in particular, offers potential for business growth, productivity leaps and innovation. The global economy could generate considerable benefits from the ongoing development of this technology, for the benefit of all: one institute has estimated annual productivity growth at up to USD 4.4 trillion. Business managers will quickly realise that there are advantages to be had in research and development, notably software development, product and customer service, and also in marketing and sales. Service and development sectors, such as the banking, high tech, life science and health care, telecommunications and insurance industries, are privileged and can benefit from a first-mover advantage. In all other industries, too, AI will become an integral part.
Using artificial intelligence in business processes and organisations is a challenge for companies, not least as a result of the EU Regulation on artificial intelligence (“EU AI Act”). This is because companies need to have a profound insight into their organisation and the product world to decide whether and how to use artificial intelligence. Our experience has shown that a risk-oriented audit helps ensure compliance when dealing with customers and regulatory authorities. The following audit clusters are of particular relevance:
- Regulatory requirements/implementation within the scope of the company’s compliance architecture
- Ensuring data quality and data protection compliance
- Protection of intellectual property
- Sustainable contract design and liability regime
- Impaired fairness, performance and explainability
- Security and protection against third-party interference
Our close collaboration and continuous exchange of information with our clients, technology leaders and research and teaching institutions allow us to be up to date on the latest technological developments and the relevant legal and tax issues. We engage in joint discussions, guided by the reports, and validate and adjust the developed solutions on an ongoing basis.
Areas of advice
Luther can carry out an AI compliance audit on behalf of companies and public-sector institutions to examine AI initiatives from a legal and regulatory perspective. The company receives a report on whether the AI used complies with current legislation and on whether the manner of use is in conformity with the law. We can also perform an audit that deals with singular issues.
The audit focuses primarily on data usage, the implementation of AI algorithms, and on whether the AI-relevant products and services meet the legal requirements, in particular in the areas of:
- data protection;
- copyright law;
- consumer protection;
- employment law and
- EU law.
We perform our audit based on the classification and the necessary steps in dealing with the various forms of AI set out in the EU AI Act. Our audit report helps companies protect themselves, identify gaps and, where applicable, make the necessary adjustments to the existing structures.
AI systems use personal data in multiple ways. The secure handling of data is of paramount importance for companies. We can analyse the way data is being handled and make suggestions for improvement. Prior to the first use of AI, we can set up a data protection-compliant structure that comprises both technical solutions and procedural guidelines. In this manner, we can guarantee data security for the companies/the public sector and ensure compliance with laws and regulations, such as the GDPR.
AI-based innovations lead to the creation of value-generating assets that need to be protected from imitation and abuse. Our advice on an IP strategy for AI helps companies develop a comprehensive protection scheme for their AI technologies and products which allows them to strengthen their market position and build and sustain competitive advantages.
An analysis by Luther of AI innovations creates planning security and legal certainty as to what should be secured. Luther can assist with the protection of these rights, including by carrying out patent applications and trademark registrations and securing copyrights. We can also advise you on the licensing and enforcement of your IP rights.
AI projects often involve complex partnerships, technology transfers and licence agreements. Our goal in drafting contracts is to reduce this complexity and enable innovation whilst minimising risk.
As part of our initial analysis, we gather information about the specific context of the AI project in order to identify relevant legal challenges and opportunities. Our experts can craft specifically tailored draft agreements that reflect your objectives whilst also providing protection mechanisms against risks. We can support you throughout the negotiation process and secure the best possible terms for you.
The regulatory landscape for AI technologies is continuously evolving and differs from industry to industry and from country to country. For the EU, the requirements of the EU AI Act are of particular importance. Our regulatory advice regarding the development and use of AI includes providing specialised knowledge to ensure AI-based products are legally compliant across the globe.
Our well-known expertise in all matters pertaining to product law benefits our clients in this field as well, as we have the relevant know-how regarding the preparation of declarations of conformity and the notified bodies. In addition, we can also assist with the preparation and submission of the applications and documentation required by regulatory law and help ensure our clients are well-prepared and in a legally watertight position when it comes to official audits.
We can carry out a comprehensive analysis of your AI applications using a systematic approach to identify potential risks in the fields of law, technology and business operations. Upon completion of this analysis, we can then develop risk management plans that are tailored to your specific needs and comprise both preventive measures and response strategies in order to effectively minimise the risks identified.
As a result of the extensive integration of AI into company processes and into how companies are organised, AI also has a strong impact on the work environment and workplace.
We provide comprehensive transparency to companies on how AI applications impact on their workforce and on working practices: employment law aspects, including the design of employment contracts, data protection in the workplace and compliance with regulations regarding health and safety at work, speak for themselves. Our recommendations are designed to protect your employees’ rights whilst increasing your company’s operational efficiency.
Our specialised advice allows you to ensure that the working practices and working conditions at your company not only comply with legal requirements but are also optimally designed in terms of AI integration. This contributes to the creation of a positive work environment where technology and employees work together in harmony.
AI start-ups are faced with unique challenges, from securing funding to protecting their intellectual property and navigating complex regulatory landscapes. Our AI start-up advice includes providing comprehensive support to help you overcome these obstacles and create a solid foundation for sustainable success.
Our approach is tailored individually and takes into account your start-up’s specific needs and goals. We offer a broad range of services, including advising on how to set up a start-up, developing IP strategies, carrying out compliance audits and providing financing advice (including performing screenings to identify possible sources of funding). Our combination of legal expertise and a profound understanding of the AI industry and entrepreneurial issues enables us to support your start-up in every growth phase.
Our advisory services are not only designed to help you protect against legal risks, they also contribute to making your start-up more competitive. You can benefit from clear, strategic guidelines that help you secure capital, effectively protect your intellectual property and overcome regulatory hurdles. With our support, you can focus on growing and scaling your AI start-up.
AI errors can give rise to significant liability risks. Luther helps companies protect against the legal and financial consequences resulting from AI errors.
We provide preventive advice by identifying potential risk areas and establishing monitoring processes, that is, strategies and a legal framework aimed at minimising the risk of AI errors and defining responsibilities. In the event of an incident, our team can provide ad-hoc support by recording the incident, mitigating its impact and reducing future liability risks.
This builds trust with customers, partners and insurers.
Having an understanding of the legal aspects of AI technology is paramount for companies operating in this field. Our training courses and workshops related to AI law are designed to equip interdisciplinary teams within the company with the knowledge needed to proactively address and resolve legal challenges. Through a combination of theoretical knowledge and practical training, we prepare employees for the task of managing legal risks effectively.
This not only helps ensure compliance and protect the company, but also fosters a culture of innovation where legal considerations are regarded as an integral part of product development.
Our training courses are held by experts in the field of AI law and can be tailored to the specific needs of your company. We cover a broad range of topics, including data protection, intellectual property, liability issues and regulatory compliance. Our workshops include case studies, discussions and Q&A sessions to help develop a deeper understanding of the subject.
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