A venture-backed AI company and a nonprofit developing artificial intelligence have many shared considerations. One advantage of the Proto Nonprofit process is low cost end user segmentation and use case testing. By using a prototyping process that yields hyper specific end user types, you are better positioned to plan for compliance with laws related to your end users.
The following post provides an overview of Consumer Protection, Liability, IP Protection, and Data Licensing considerations to review before you start to prototype. This information was adapted from materials distributed at New York University during the 2017 Future Labs AI Summit. As with all content presented by this website, this information is not intended to replace professional legal advice. Please review our Disclaimer for more information.
Advertising & Consumer Protection
U.S. State Law Requirements
States have begun to regulate around AI products. The legal requirements related to an end user in California are distinct from an end user in Texas. Prototyping once for California and once for Texas improves planning for state-specific compliance.
Liability & Tort
When social enterprises develop AI intellectual property, they face special challenges related to ethics. Seek to develop processes that incorporate the ethical conduct expectations of nonprofit donors, or environmental, social and governance (ESG), socially responsible (SRI), and impact investors. This section includes notes on information security, human capital, and onboarding processes.
Data Licensing & Data Privacy
For more information
See Orrick’s Start-Up Forms Library to familiarize yourself with the types of legal agreements you may need when developing an AI product.