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By: Practical Guidance
Corporate investment in generative artificial intelligence (Gen AI) technologies continues to accelerate. Average Gen AI budgets grew by 30% in 2024 and they are expected to grow at roughly 60% over the next three years, soaring to 7.6% of total IT budgets by 2027, according to a report from Boston Consulting Group.
These investments are leading directly to rapid adoption of Gen AI tools in the workplace. A recent Gallup study of HR executives found that 93% of Fortune 500 companies have begun using AI tools and technologies to improve business practices and nearly half (45%) of them say their organization’s operational efficiency has already improved because of AI.
There is one potential problem looming amid this exciting tech-driven trend: too often the legal team is not in the loop.
Law360 reported that human resources departments are using AI “while about half of their legal chiefs don’t even know about it,” noting that “these discrepancies among executives pose challenges for effective AI risk management.”
8 Tips for Creating a Comprehensive AI Policy
Legal experts caution that the decision to implement AI in the workplace should be a deliberate and careful one. The risks are too great to rush into adoption of any AI-powered technology simply because competitors are using it or customers are asking about it.
“While use of Gen AI can make it easier to enhance productivity and streamline processes, adopting and implementing such technologies can simultaneously add significant complexity to an organization’s operations, sales, manufacturing and human capital management operations,” wrote Eric Felsberg and Douglas Klein, principals at Jackson Lewis P.C., in a recent LexisNexis Practical Guidance practice note. “And with the emergence of Gen AI, many jurisdictions have issued regulations to guard against its misuse. Consequently, it is important that employers seek legal, ethical and regulatory guidance when implementing AI platforms in the workplace.”
The authors suggest that employers work with their legal team to create a comprehensive AI usage policy that sets the ground rules for the deployment of AI tools in their organizations. Here are eight specific tips to consider:
Resources from LexisNexis Practical Guidance
The LexisNexis Practical Guidance team has published a Generative Artificial Intelligence Resource Kit, a comprehensive collection of information resources that examine the key legal issues related to the adoption and use of Gen AI technologies. Specific content includes:
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* The views expressed in externally authored materials linked or published on this site do not necessarily reflect the views of LexisNexis Legal & Professional.