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Last updated on March 10, 2025
Using AI to turbocharge your business? Find out how you can safely use AI while protecting your IP and maintaining consumer trust.
As AI continues to transform industries, business models, and legal frameworks, it’s becoming increasingly important that companies know how to navigate the minefield of legal risks that come with these advancements.
Founders Law‘s Tom Bohills explores how AI can be implemented safely to fuel your company’s growth, whilst establishing strong legal foundations.
AI’s Role in Business Transformation
AI is here, across every sector and business vertical. From automating processes to enhancing customer experience, it’s driving efficiency, scalability, and creativity at a significant rate.
In fact, it’s expected to affect at least 40% of jobs around the world with the industry growing between $17.1 and $25.6 trillion annually. Platforms like Amazon use AI to personalise recommendations and optimise supply chains, while financial institutions leverage machine learning for fraud detection and risk management.
Integrating AI strategically involves aligning initiatives with long-term goals, investing in the right technologies, and fostering a culture of innovation. It’s thought that AI could contribute $2.6 – $4.4 trillion annually to the global economy by 2024 and how we use it by 2030 will be significantly different to today, as it becomes ever more integrated into our lives.
There is likely to be significant change to both our personal and professional lives, with AI working as our personal assistant, our tutor, our career counsellor, our therapist, our accountant, and (dare we say it) even our lawyers.
For business, AI-powered analytics are already helping businesses identify new revenue streams, optimise operations, and improve decision-making processes. For instance, Siemens, a forerunner that has invested in AI for nearly 50 years, uses it to enhance predictive maintenance in manufacturing, reducing downtime and operational costs and the likes of Netflix employ AI algorithms to recommend content, contributing significantly to its user engagement and retention rates – something you will all be familiar with.
Navigating the Legal Risks of AI
AI is certainly keeping lawyers busy for now. Key areas of concern include data privacy (including the making of automated decisions with significant effects on individuals), intellectual property (IP), and questions over liability. The European Union’s General Data Protection Regulation (GDPR) mandates strict compliance when collecting and processing personal data, with non-compliance resulting in fines of up to €20 million or 4% of global annual revenue.
Additionally, the rise of AI-generated content raises questions about IP ownership and copyright, particularly when distinguishing between human and machine-created works.
A great example of this in action is where AI and IP law intersect. This has sparked significant debate, particularly in creative sectors like film and television which saw actors and writers striking for nearly 150 days in 2023. These strikes, led by the Writers Guild of America (WGA) and Screen Actors Guild (SAG-AFTRA), highlighted concerns about AI’s impact on creative jobs and content ownership.
We were delighted to be involved in these discussions on behalf of a key industry player. The negotiations resulted in new agreements ensuring fair compensation and limits on the use of AI-generated scripts and digital replicas.
The Future of AI in Business
By establishing strong legal foundations you can safely use AI while protecting your intellectual property and maintaining consumer trust – but its a tricky balance. Those who get it right will win the arms race and start to dominate their sectors.
While we don’t know what the future might hold but our view is that businesses should implement the top tips. These will allow you to grow and scale successfully without falling into any unexpected pitfalls:
1. Draft Comprehensive AI Governance Policies
Establish clear internal policies governing the use of specified and authorised AI tools, including guidelines on data usage, inputting confidential or commercially valuable information, content generation, and ethical considerations. This ensures that AI applications align with legal standards and corporate values.
2. Carry Out Ongoing Compliance and Risk Assessments
Conduct regular compliance reviews and risk assessments to ensure AI systems adhere to evolving regulations. This includes monitoring data privacy laws, intellectual property rights, and liability frameworks. Businesses deploying or providing AI systems into the EU marketplace will need to comply with the EU AI Act.
3. Implement Transparency and Accountability Measures
Maintain transparency in AI decision-making processes by documenting how AI systems are trained, the data they use, and the outcomes they generate. Assign accountability for AI-related decisions to specific teams or individuals to mitigate potential legal and ethical risks.
Founders Law is a multi-award-winning law firm dedicated to helping hyper-ambitious founders scale with confidence. As part of FF Group, they’re offering a free 15-minute consultation exclusive to FF readers to make sure you’re legally prepped for the year ahead. Get in touch with tilly@founders-law.co.uk to book it now.
