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Besides its great potential benefits, Generative AI brings new risks and challenges for businesses and society. Which two statements are correct in terms of the legal risks and challenges of Generative AI? Choose 2 options.

A. Businesses may be held responsible for any personal privacy rights violations resulting from the use of Generative AI models.

B. Any content generated with AI can be freely used without worrying about intellectual property rights.

C. AI systems might be used for generating harmful content such as personalized fraud messages and malicious code.

D. AI, being an emerging technology, is currently not subject to existing regulations or newly proposed regulations.

Answer :

Final answer:

Generative AI introduces notable legal risks, including the responsibility of businesses for privacy violations and the potential for AI to generate harmful content. These challenges require organizations to be vigilant in their use of AI technologies. Notably, the use of AI-generated content still falls under intellectual property regulations, and there is a growing movement towards the regulation of AI.


Explanation:

Understanding the Legal Risks and Challenges of Generative AI

Generative AI, while offering significant benefits, poses several legal risks and challenges for businesses and society. The following two statements accurately reflect the legal concerns associated with its use:

  1. Businesses may be held responsible for any personal privacy rights violations resulting from the use of Generative AI models. This means that organizations that utilize generative AI tools need to ensure compliance with privacy regulations such as GDPR, as they can be liable for any data misuse or breaches that occur as a result of AI processes.
  2. AI systems might be used for generating harmful content such as personalized fraud messages and malicious code. This raises ethical and legal issues, as companies may be held accountable for the misuse of the technology they deploy, including fraudulent activities conducted through AI-generated outputs.

On the other hand, the statement claiming that any content generated with AI can be freely used without worrying about intellectual property rights is misleading. While generative AI can produce original works, the ownership and use of such content may still fall under existing copyright laws. Furthermore, the assumption that AI, being an emerging technology, is currently not subject to existing regulations or newly proposed regulations is incorrect; there are ongoing discussions about the regulation of AI technologies, including potential frameworks to govern their use.

Conclusion

In summary, understanding the legal implications of generative AI is essential for any business or individual involved with these technologies. Businesses must remain vigilant about privacy violations and the potential to generate harmful content, which could lead to significant legal challenges.


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