Modern businesses are recognizing that artificial intelligence is both an opportunity and a risk to their operations. With nearly two decades in patent law and software innovation, SankerIP founder David Sanker has seen his fair share of technology changes and how they influence workforce operations in major industries. Artificial intelligence systems are the newest innovation to impact the workforce. In a recent spotlight with USA Today, David Sanker shared his perspective on the legal risks businesses face with AI use and content generation.

Businesses have been using third-party technology for decades, striving to balance innovations with legal challenges and customer concerns. Artificial intelligence promises to bring further considerations to the table as more companies embrace these technologies. While there are always intellectual property risks of working with artificial intelligence systems, David Sanker believes that there are additional business risks that businesses need to consider to navigate these new systems safely.

The SankerIP founder notes that one long-term consideration is the impact of AI on employee workforce investments. Although many new AI systems entering the market can perform entry-level jobs, he believes that cost savings from replacing human workers can lead to reduced talent in the pipeline.

“AI systems cost less than hiring new staff and can work more quickly, effortlessly managing tasks that would otherwise be left to a first-or-second-year associate in the legal field,” David Sanker shared as an example, highlighting the draw these systems have in many industries. However, he stresses that by leaving early career work to computer systems, new employees miss out on key developmental opportunities and may struggle to perform independently in more advanced roles.

In addition to impacts on the workforce, the potential effects on a company’s quality are also an important concern for businesses. While AI systems may seem highly competent, the reality is that they are not always accurate, and the mistakes that they make can be costly in some cases. Businesses may find themselves on the hook for AI mistakes, whether a system leads to physical harm or simply hurts a company’s reputation by introducing fabricated information as a result of the “hallucinations” that are currently being documented across a wide range of generative systems.

To avoid an unfortunate future where artificial intelligence use leads to business oversimplification, David Sanker recommends keeping an eye out for the potential commoditization of business. With these systems being geared to adopt “best practices” in most cases, there is a risk that what makes a company and its processes unique can be lost. Sanker recommends avoiding a complete overhaul based on AI input, pointing out that companies risk losing the strengths and security their customers depend on.

Of course, this patent law attorney also shared considerations regarding the effects of artificial intelligence use in relation to intellectual property. Having a system that can process a high volume of content very quickly can be highly beneficial, but it also comes with its own risks.

In the USA Today article, David Sanker identified three IP concerns that businesses face with AI use. He is considered a prominent public voice on this topic, with his contributions to this particular area of interest further outlined in the chapter he penned titled “Practical guidelines for the use of generative AI” in GLI’s AI, Machine Learning & Big Data 2024.

The first IP concern is the potential loss of confidential information as a result of using these systems. Since most companies are using third-party systems, there is simply no guarantee of protection, particularly with complex software systems and increasing attacks by cybercriminals. Trade secrets or private information can be compromised by the use of AI tools, such as incorporation into future AI training.

The second IP consideration is whether or not AI-generated content or inventions can be legally protected at all. The legal world is adapting to artificial intelligence, but the current law is clear: AI-generated content or inventions cannot be protected by patents or copyrights unless there is substantial human input.

The third IP consideration is whether using artificial intelligence places companies at risk of infringing on the rights of others. Several lawsuits have already come to light as a result of copyrighted material being used for training these systems without authorization, and public opinion favors original creators in these cases.

“As more content creators highlight the many ways their works have been used to train AI without permission, ethics is being called into question,” Sanker shared in the USA Today spotlight.

With his background in law and technology, David Sanker believes that artificial intelligence can and will have a place in the workforce, but companies need to make informed decisions when incorporating these systems into their business models. Finding a balance between human insights and AI contributions will help businesses in every industry maintain harmony as the world moves forward.

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