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While everyone in the tech sector is swooning over AI, the folks in the Capitol are drooling over it also, but for a different reason. As are the big DC law firms. The companies that depend on users visiting their web sites to sell products – well, they are having migraines.
First the setup.
Tech companies figure they are mostly invincible and that has proven correct time and time again. Why? Because Section 230 of the Communications Decency Act, written in the 1990s, says that these firms are not liable for content generated by third parties. Google search is merely a filtering of third party content. Facebook and Twitter live off the content generated by their users. The courts have overwhelmingly said that these companies are not liable for whatever content these third parties create.
But that is all changing due to AI.
Companies like Google and Microsoft – and eventually Apple and Facebook, as well as all of the small players are integrating AI into their products.
Google just demoed (and yes, the demo hallucinated, proving the point) a capability where you can upload a video of say, a lever on your camera not moving. Google then tells you what might be wrong and how to fix it.
But here is the problem. Google is NOT just pointing you to web sites, they are generating content to show you.
SECTION 230 DOES NOT PROTECT THEM FROM LIABLE, SLANDER, FALSE CLAIMS AND A WHOLE RAFT OF OTHER LAWS IN THAT CASE.
That is a problem for the tech sector.
On to Congress. Some folks in Congress, predominantly on the right but not exclusively, want to kneecap the tech sector. They are already working on bills to make companies liable for AI hallucinating. If that becomes law – and it is not there yet, but there are drafts of bills in play – those in Congress who do not like the tech sector will have achieved their goal of serious liability. It will also cripple the sector’s ability to roll out new services that use AI. In addition, some in Congress would like to do a total overhaul of Section 230. I think if they try to combine all that rather than working it in pieces, it could doom passage, but who knows. It is also unclear if the Prez would veto that. Right now, unless the law is narrowly scoped, it won’t pass with a veto proof majority.
The other folks that are just drooling – they legal bar on both sides – plaintiffs and defendants. This will be an unbelievable payday for them.
Finally, the last group. Companies that depend on you visiting their web site. If the tech companies synthesize content good enough that you no longer need to visit most web sites, that would doom a lot of companies. That won’t doom your bank, for example, because, at least for now, these AI bots are not going to replace licensed financial services.
For companies that plan to use AI and integrate it into their products, they need to watch what is happening very carefully and make adjustments if needed.
Even without a change to the law, it is likely that Section 230 won’t cover AI. The Supremes seem to be leaning in that direction, even without a specific case before them.
Watch and be ready to pivot. Feel free to contact us. And your lawyer – if he or she knows anything about tech.
Credit: R Street