Our latest edition of Byte Back AI is now available to paid subscribers. In this edition, we provide:
Welcome to the second edition of Byte Back AI, a weekly newsletter providing updates on proposed state AI bills and regulations, an AI bill tracker chart, summaries of important AI hearings, and special features. Starting January 6, 2025, Byte Back AI will be available only to paid subscribers. For more information on subscriptions, please click here.
As always, the contents provided below are time-sensitive and subject to change.
Welcome to the first edition of Byte Back AI, a weekly newsletter providing updates on proposed state AI bills and regulations, an AI bill tracker chart, summaries of important AI hearings, and special features. The first two editions of Byte Back AI will be released for free on Byte Back. Starting January 6, 2025, Byte Back AI will be available only to paid subscribers. For more information on subscriptions, please click here.
Read the second complimentary edition here.
As always, the contents provided below are time-sensitive and subject to change.
Keypoint: The New York Department of Financial Services (NYDFS) circulated an industry letter offering guidance to NYDFS “Covered Entities” for assessing and managing AI-related cybersecurity risks, including threats malicious actors using AI and the risks associated with a Covered Entity’s own AI systems.
The NYDFS industry letter (“Letter”) recognizes that Covered Entities can leverage AI to enhance their cybersecurity posture. The department contends that doing so would bolster entities’ compliance with NYDFS cybersecurity regulation 23 NYCRR Part 500 (“Part 500”).
Keypoint: Of the ten privacy- and AI-related bills passed by the California legislature in the 2024 legislative session, Governor Newsom signed seven into law and vetoed three by the September 30 deadline.
Throughout the 2024 legislative session, we have been tracking numerous privacy- and AI-related bills pending in California. Ten of those bills passed the state legislature before the legislative session ended on August 31 (nine of which passed in the final week of August). Governor Newsom had a deadline of September 30 to sign or veto the bills that passed. Of the ten total bills, he signed seven into law and vetoed three bills. Those seven bills scheduled to go into effect consist of four laws related to privacy and three laws related to AI.
The below article provides a summary of the ten bills that Governor Newsom either signed into law or vetoed.
Keypoint: The Texas Attorney General reaches a first-of-its-kind settlement with a healthcare company that provides generative AI products.
On September 18, 2024, the Texas Attorney General announced that it had reached a settlement with a Dallas-based artificial intelligence healthcare company. The Attorney General’s press release represents that it is a first-of-its-kind settlement, resolving allegations that the company deployed its artificial intelligence (“AI”) products at Texas hospitals while making false and misleading statements about the safety of its products.
Keypoint: The California legislature closed its 2024 session by passing five privacy-related bills and four AI-related bills.
On Saturday, August 31, the California legislature closed its 2024 session. During the past calendar year, we tracked numerous privacy and AI-related bills with fourteen of them passing out of their chamber of origin prior to the legislative deadline. For the past month, we have been tracking thirteen of those bills with weekly updates (the fourteenth bill already having passed through the legislature). Of the six privacy-related bills we have been tracking, five ultimately passed the legislature during the final week of the session. Four of the seven AI-related bills also passed.
The below article first provides a summary of the bills that passed during the final week of the session. The article then provides an overview of all fourteen bills.
Keypoint: The California legislature enters into the final week of its session with many bills still under consideration.
We are currently tracking thirteen privacy and AI-related bills that previously crossed chambers prior to the legislative deadline. With the California legislature closing on August 31, we will be providing weekly updates on the progress of these bills.
Keypoint: Although not nearly as far-reaching as the Colorado AI Act, the Illinois law adds to the growing patchwork of state laws that regulate artificial intelligence.
On August 9, Illinois Governor J.B. Pritzker signed HB 3773 into law. The bill, which goes into effect January 1, 2026, amends the Illinois Human Rights Act to regulate the use of artificial intelligence in certain employment settings. In the below article, we provide a summary of the law and its provisions.
Keypoint: Companies onboarding AI products and services need to understand the potential risks associated with these products and implement contractual provisions to manage them.
With the rapid emergence of artificial intelligence (AI) products and services, companies using these products and services need to negotiate contractual provisions that adequately address the unique issues they present. However, given that this area is new and rapidly emerging, companies may not appreciate that the use of AI may raise unique contractual issues. Even if companies do realize it, they may not know what those provisions should state. In addition, many AI-related contractual terms are complicated and confusing, oftentimes containing new terms and definitions that companies are unfamiliar with handling.
In the below article, we identify key considerations when reviewing or preparing AI-related contracts. Although there may be other considerations depending on the specific use case, the below considerations should provide the reader with a useful starting point for how to address this issue.