In recent years, we have witnessed a significant increase in the involvement of advanced technologies, including artificial intelligence, machine learning, natural language processing, deep learning, neural networks, and more. These disruptive technologies are becoming an integral part of everyday life and are challenging paradigms across numerous fields. While these technologies offer significant business opportunities, they also raise complex legal, regulatory, and ethical questions.
Global Regulation: Navigating a Complex Legal Environment
Regulation in the field of artificial intelligence is characterized by significant global fragmentation, due in part to the rapid pace of technological developments and to fundamental differences in the national strategies adopted by countries around the world in this area. While some countries, such as the European Union and China, are adopting strict and comprehensive approaches, others, including Israel, the United States, and Singapore, are advancing more sector-specific and flexible regulation in order to encourage development and innovation. Other countries have yet to adopt dedicated regulation for artificial intelligence.
The gap between the various approaches worldwide requires many organizations, particularly those operating internationally, to operate in an environment of regulatory uncertainty and assume a range of legal risks. Mitigating these risks requires an in-depth understanding of diverse legal frameworks, the ability to navigate international regulatory regimes, and expertise in adjacent legal fields such as privacy and data security, intellectual property, and innovation protection. It also requires extensive commercial experience in order to incorporate regulatory requirements and protect business interests in commercial and corporate agreements relating to artificial intelligence and its applications.
Tailored Services for Every Stage of AI System and Tool Development and Use
Our firm offers comprehensive legal advice and support to organizations and companies that use artificial intelligence tools to streamline and enhance organizational processes, including the development of internal policies and tailored advice on each client’s legal and business challenges.
In addition, our firm advises clients throughout all stages of the development, implementation, and adoption of artificial intelligence systems and tools. Our support includes, among other things, classification under applicable laws, risk assessments, advice during the development and training stages, and support through the post-learning stage, including export, sale, and marketing.
Tailored to Each Client’s Unique Needs
Our practice addresses the full range of legal issues relating to artificial intelligence and its applications, tailored to each client’s specific needs, including:
Regulation and Compliance
- Navigating the global regulatory environment based on the client’s jurisdictions of operation, with a focus on advanced laws such as the EU AI Act, the GDPR, and national regulations.
- Developing tailored internal policies to meet regulatory requirements, including AI system classification and risk assessments.
- Advising on litigation developments relating to AI risks.
- Advising and training management and boards of directors on AI-related policies and procedures.
Privacy and Data Security
- Advising on the use of data for training AI models while safeguarding privacy and protecting personal information in accordance with applicable legislation.
- Developing and adapting existing organizational procedures, alongside cyber-risk management and information security.
Commercial and Corporate Transactions
- Assisting with the structuring of commercial agreements for companies integrating AI into their products and services.
- Advising on mergers and acquisitions, business ventures, and licensing agreements relating to AI technologies.
Intellectual Property and Innovation Protection
- Advising on the relationship between AI technologies and copyright, patents, and trade secrets.
- Advising on outputs generated through artificial intelligence.
- Advising clients regarding the use of third-party assets for machine training, as well as the use by third parties of clients’ intellectual-property assets for machine training, and preparing agreements on these matters.
- Advising on the formulation of organizational intellectual-property policies in the field of artificial intelligence.
- Representing clients in legal proceedings in this field, and before government ministries and Knesset committees in legislative processes.
Litigation and Risk Management
- Legal representation in disputes relating to artificial intelligence technologies, including intellectual-property infringement and product-liability claims.
- Advising on the management of legal and strategic risks relating to litigation in the field of artificial intelligence.
Financial Regulation
Review of AI-Based Underwriting Processes
- Reviewing underwriting models used for credit decisions against the requirements of the Prohibition of Discrimination in Products, Services and Entry into Entertainment Venues and Public Places Law, 5761-2000, and preventing prohibited bias.
Anti-Money Laundering, Counter-Terrorist Financing, and Financial Fraud Prevention
- Advising on automated customer identification (KYC) while maintaining privacy and information security.
- Assisting with the implementation of financial fraud-detection systems.
Support in Developing Innovative Financial Products
- Legal and regulatory advice on the development and implementation of AI-based financial solutions.
- Assisting in obtaining regulatory approvals and regulatory relief for innovative financial products.
- Addressing customer transparency and disclosure requirements, including developing mechanisms to explain AI-based decisions, creating transparent client-reporting templates, and regulatory documentation for internal systems.
- Supporting clients in investigations and audits conducted by financial regulators.
Monitoring and Analyzing Regulatory Developments in AI-Based Finance
- Monitoring regulatory changes relating to artificial intelligence in the financial sector.
- Analyzing the impact of new regulations on financial institutions and their clients.
- Developing strategies for compliance with future regulation.
Practice Team
Our firm provides clients with the legal tools required to create a meaningful advantage in an environment of accelerated technological change and evolving regulation. This is achieved through our artificial intelligence team, which includes leading lawyers with expertise across a range of areas, including privacy and data security, intellectual property, commercial law, financial regulation, international regulation, and litigation.
