Client updates / High Tech

Amendment 13 to the Israeli Privacy Protection Law is expected to come into effect in mid-August 2025. The amendment prescribes, inter alia, organizations’ obligation to appoint a data protection officer. The Privacy Protection Authority recently published a draft directive on implementing this obligation. The draft is not final and is open for public comments.

At the end of June 2025, the Northern California District Court issued two precedent-setting rulings addressing the legal question: Is it lawful to use copyrighted works for machine training of AI-based large language models (LLMs)?

Earlier this month, the US Senate voted 99-1 to strike a key clause in a sweeping Republican domestic policy bill that sought to impose a ten-year moratorium on states’ enforcement of artificial intelligence regulations.

The court’s determinations in the Kovach ruling underscore how important it is for employers to carefully and wisely manage their undertakings to grant Stock Options to employees, especially in startup companies that use options as a key remuneration tool.

The Israeli Privacy Protection Authority (PPA) published a draft directive recently to clarify its position about how businesses and organizations should apply the provisions of the Privacy Protection Law and the privacy regulations to artificial intelligence systems.

Earlier this month, the European Data Protection Board (EDPB) issued draft guidelines on the processing of personal data through blockchain technologies.

The AI revolution in the Israeli capital market: The Israel Securities Authority allows financial institutions to use chatbots on their financial analyses platforms, but imposes clear rules and important restrictions on their use.

A US court (in Delaware) recently handed down a precedent-setting ruling on a lawsuit filed by a copyright-owner, the media and technology conglomerate, Thomson Reuters, against the artificial intelligence platform, Ross Intelligence. The Delaware court ruled that the defendant had infringed the plaintiff’s copyrights, and that the defendant is not entitled to any of the statutory protections, including reliance on the “fair use” doctrine as a defense.

Several days ago, the European Data Protection Board (EDPB) adopted an opinion addressing key data protection concerns arising from the use of Artificial Intelligence (AI) models. The opinion specifically focuses on how GDPR principles apply to AI, emphasizing issues such as anonymization of data within AI models, the legal basis for processing personal data during AI development and deployment, and the consequences of unlawful data processing in AI systems.

Recent fines issued in New York are part of a wider trend of stricter state-level enforcement on cybersecurity in the U.S. Israeli companies operating in the U.S. are required to stay informed.

This month, an interim report on artificial intelligence (AI) in the financial sector was published for public comment. The report was written by the Ministries of Justice and Treasury, the Competition Authority, the Securities Authority, the Capital Market Authority, and the Bank of Israel.

The Privacy Protection Authority has issued a mandatory guideline holding the board of directors fully responsible for information security, with heavy fines for violations. The guideline requires the board to oversee compliance with regulations and develop organizational policies, particularly for entities processing sensitive personal data.

The U.S. court is hearing artists’ lawsuits against AI platforms for copyright infringement. The decision could lead to new regulations and insights into the impact of using protected works for training.

The AI Act applies, similar to other European legislation, to companies not based in the European Union but have activity in the Union. Therefore, it may also affect Israeli companies offering services in Europe.

The subjects of copyright and the protection thereof are core issues for companies that use artificial intelligence (AI) technology. Therefore, it is important to ensure that the agreements in place between different players in the economy and AI technology providers include provisions that protect such players against legal claims in relation to copyright

The court’s decision to start enforcement proceedings, in addition to the provisions of the California Consumer Privacy Act (CCPA) already being enforced, is expected to lead to a significant increase in enforcement against companies that fall in the scope of the CCPA.

2023 trends are expected to continue in 2024, including the constantly evolving regulation of AI tools and new privacy protection and data security issues, as well as attempts by Israeli and global authorities to keep up with the pace at which technology is evolving and changing the face of the business world.

While AI tools offer significant contributions to businesses, even non-technological ones, it’s crucial to understand the potential exposures these tools may present. This guide emphasizes the importance of conducting examinations and implementing AI tools in a legal and transparent manner.

The conflict between copyright protection for content creators and the development of AI platforms by companies is being litigated once again in court. Can appropriate regulation reconcile between the parties’ needs?

The Israel Innovation Authority is granting support to new angel investor clubs as part of a series of measures to encourage entrepreneurship and the high-tech industry in Israel.