Client updates /  AI

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.

Recently, a US District Court in Illinois has granted final approval to a settlement in the Clearview AI consumer privacy litigation, concerning the company’s controversial practices of collecting and storing biometric facial recognition data. This should serve as a reminder that US state privacy laws are as relevant as ever and that their violation may lead to significant penalties.

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.

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 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.

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.

A man who entered Israel with drugs in his possession sought to expose the Israel Police’s use of AI tools that resulted in his inclusion in a list of suspected drug couriers. The court’s criticism of the police’s tactics clarifies that even if the AI system leads to correct identification or to accurate decisions, its mechanisms must be transparent, explainable and auditable. 

Who owns the copyright to an AI-generated image—the creator, the technology, or no one? A recent court ruling in the United States determines that the right to copyright protection depends on the degree of human involvement in the work.