As artificial intelligence (“AI”) use and capabilities surge, a new risk is emerging for companies: AI whistleblowers. Both increased regulatory scrutiny over AI use and record-breaking whistleblower activity has set the stage for an escalation of AI whistleblower-related enforcement. As we’ve previously written and spoken about, the risk of AI whistleblowers is rising as whistleblower protections and awards expand, internal…

On April 29th, 2024 from 11:00 am to 12:00 pm (EDT) Debevoise partner Erez Liebermann will be joined in conversation with Todd Conklin, the Chief Artificial Intelligence Officer and Deputy Assistant Secretary of Cyber at the U.S. Department of the Treasury. They will discuss the recent report by the U.S. Department of the Treasury on “Managing Artificial Intelligence-Specific Cybersecurity Risks in the…

Online customer service chatbots have been around for years, allowing companies to triage customer queries with pre-programmed responses that addressed customers’ most common questions. Now, Generative AI (“GenAI”) chatbots have the potential to change the customer service landscape by answering a wider variety of questions, on a broader range of topics, and in a more nuanced and lifelike manner. Proponents…

On April 22, 2024 from 11:00 am – 12:00 pm (EDT), Luke Dembosky, Erez Liebermann, HJ Brehmer, and Stephanie Thomas from our Data Strategy and Security Group will host the next installment of our Data Security Webcast, where we will delve into the Cybersecurity and Infrastructure Security Agency (“CISA”) notice of proposed rulemaking (“Proposed Rule”) for reporting requirements for critical…

Adding to the growing number of cybersecurity incident reporting obligations, the Cybersecurity and Infrastructure Security Agency (“CISA”) has introduced a reporting requirement that will impact all critical infrastructure sectors, featuring highly detailed reporting duties that necessarily will require covered entities to maintain asset inventories, along with subpoena power and criminal enforcement authority. Back in March 2022, President Biden signed the…

Many public companies are starting to face increased risks of securities class action litigation based on statements about their use of AI that are alleged to have been false or misleading.  We have previously written about the legal risks that companies face if they oversell the capabilities of their AI systems, which is known as “AI washing.” In particular, the…

On December 18, 2023, the Securities and Exchange Commission’s (the “SEC”) rule requiring disclosure of material cybersecurity incidents became effective. To date, 11 companies have reported a cybersecurity incident under the new Item 1.05 of Form 8-K (“Item 1.05”).[1]  After the first 100 days of mandatory cybersecurity incident reporting, we examine the early results of the SEC’s new disclosure requirement.…

On March 18, 2024, the U.S. Securities and Exchange Commission (“SEC”) announced settled charges against two investment advisers, Delphia (USA) Inc. (“Delphia”) and Global Predictions Inc. (“Global Predictions”) for making false and misleading statements about their alleged use of artificial intelligence (“AI”) in connection with providing investment advice.  These settlements are the SEC’s first-ever cases charging violations of the antifraud…

On February 26, 2024, the National Institute of Standards and Technology (“NIST”) announced the release of Version 2.0 of the Cybersecurity Framework (“Version 2.0” or the “Framework”). We previously wrote about proposed changes to the Framework, which has become an important industry standard for assessing cybersecurity maturity of organizations and managing cybersecurity risk. Version 2.0’s enhanced guidance, and particularly its…

On March 15, 2024 from 11:00 am – 12:00 pm (EDT), Erez Liebermann, Caroline Swett, Robert Maddox, and Stephanie Thomas from our Data Strategy and Security and Banking Groups will host the next installment of our Data Security Webcast, where we will delve into the Commodity Futures Trading Commission’s (“CFTC”) notice of proposed rulemaking for an operational resilience framework for…