The role of legal counsel is crucial in shaping AI governance frameworks and ensuring the development of transparent, accountable AI systems. As AI rapidly transforms the legal landscape, professionals in this field face the complex challenges of navigating emerging and often conflicting AI regulations, mitigating liability, negotiating AI-specific contracts, and promoting accountability. Legal counsel specializing in AI governance is indispensable, not only for interpreting intricate regulations like the EU AI Act but also for fostering trust and transparency in AI development.
This article is authored by Lucia Loyo, a certified AI governance professional. As General Counsel at ETS EMEA, a global organization specializing in education and talent solutions that empower lifelong learners to thrive in the future, Lucia provides strategic legal guidance with a strong focus on AI governance and the ethical dimensions of AI. Let’s read what she shares with our community.
The nature of the legal function is changing at an unprecedented speed. What made us successful as legal professionals a few years ago, is no longer sufficient today. Artificial intelligence (AI) has fundamentally changed the way we work and the challenges we face in our roles.
Since AI became mainstream, legal professionals have been inundated with questions touching every aspect of law—from copyright protection of AI-generated content and compliance with AI regulations to implications for data privacy and liability.
With just a few days before the first obligations from the EU AI Act become effective, legal counsel are receiving even more questions about AI compliance.
In this context, it is essential to emphasize the importance of AI Governance (AIG) and the vital role that legal counsel plays within it. By engaging with AI Governance frameworks, legal professionals can find answers to these questions, gain support, and play a pivotal role in shaping these frameworks to address both current and emerging regulations.
AI Governance not only supports legal counsel in navigating AI-related issues but also relies on their expertise to function effectively.
Building Trust Through AI Governance
The goal of AI governance is to ensure that artificial intelligence technologies are developed, deployed, and used in a manner that is ethical, transparent, and accountable, while aligning with societal values, legal requirements, and organizational goals.
Well-governed AI technologies provide benefits at many levels, but organizations benefit first as they establish systems to develop, use, and deploy AI efficiently, reducing time and resource waste.
The common argument that adhering to these principles and - specifically regulation- stifles innovation, overlooks the value of AI Governance in building trust. AIG provides a solid foundation for their long-term success by ensuring responsible development and use. Regulation fosters user confidence, ultimately leading to faster adoption and a more robust market presence.
AI Governance: A System Built on Collaboration
AI Governance is not merely a regulatory framework but a dynamic system of interconnected components, including data management, risk assessments, ethical guidelines, and compliance protocols. Each component relies on collaboration among stakeholders such as technology, risk, compliance, procurement, and legal teams. Legal counsel’s ability to interpret regulations, mitigate risks, and ensure accountability makes them indispensable in this system.
Think of AIG as a clock: it works well when all the gears are interconnected, with legal counsel as the central wheel keeping the system together.
Why is Legal Counsel Critical to AI Governance?
Typically, organizations see the responsibility of AI Governance falling either within a technical role like the CTO or CIO, or within a legal role, often the person responsible for privacy. Assigning this responsibility to legal counsel has significant advantages as legal professionals bring the ability to:
Navigate Regulatory Complexities: Understand and interpret AI-related regulations for compliance across jurisdictions.
Mitigate Liability Risks: Identify and address potential liabilities associated with AI systems.
Negotiate Robust Contracts: Draft contracts addressing AI-specific risks, such as intellectual property and liability.
Drive Accountability: Establish processes ensuring ethical and responsible AI use.
Regardless of who leads AIG, legal counsel’s role in its development is crucial for its effective functioning.
Key Responsibilities of Legal Counsel in AI Governance
1) Regulatory Compliance - Legal counsel ensures AI systems adhere to laws like the EU AI Act and GDPR by:
Monitoring evolving regulations to ensure compliance.
Advising on data collection, processing, and usage legality.
Conducting impact assessments for high-risk AI applications.
2) Mitigating Liability - AI introduces unique liability challenges, including:
Allocating responsibility for system failures or inaccuracies.
Addressing bias or discrimination in AI outputs.
Drafting liability clauses to protect the organization.
Legal counsel’s expertise mitigates these risks, protecting the organization from unnecessary exposure.
2) Contract Negotiation - AI-related contracts require attention to:
Intellectual property ownership of AI-generated works.
Licensing agreements for AI tools and datasets.
Liability allocation and indemnification clauses.
By addressing these elements, legal counsel protects the organization’s interests and fosters trust with partners and clients.
4) Driving Accountability - Legal counsel promotes accountability by:
Advocating for transparency and fairness in AI systems.
Designing mechanisms to monitor and audit AI use.
Documenting AI development and decision-making processes.
Conclusion
The role of a legal counsel in AI Governance is multifaceted and critical. From navigating regulatory landscapes to mitigating liability, negotiating contracts, and driving accountability, legal professionals are at the heart of effective AI Governance. By engaging proactively with AI Governance frameworks, legal counsels not only find answers to pressing questions but also help build ethical, trustworthy AI systems that drive long-term value for their organizations.
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Silvia A. Carretta and Dina Blikshteyn
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