Column: Though Businesses Are Moving Fast to Use AI, There Is Much They Are Still Getting Wrong
• Scale Pilots Before Pressure-Testing Failure Cases
A 60-day pilot program in a controlled environment proves very little about what happens when the pilot scales across the business.
The situations that drive litigation and regulator attention are the edge cases: a customer-service chatbot that quotes a discount the company will not honor, an automated claim or benefit denial that turns out to fall hardest on a protected class of individuals, a sales-enablement AI tool that confidently describes a product feature that does not exist.
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• Operating Under Vendor Contracts Signed Before AI Tools Were Introduced
Most enterprise software agreements were negotiated two and three years ago, before a vendor that a company works with added AI features through a release note. Today those same terms govern systems that ingest customer financial data, employee performance reviews and possibly protected health information into models the customer never agreed to train.
To the extent the agreement includes a standard data-processing addendum, such addendum may be silent on training rights, output ownership and indemnification for AI-generated errors.
Companies should collate active vendor contracts that touch sensitive or regulated data, flag the contracts where the vendor has shipped new AI features and plan to renegotiate before the auto-renewal date. Do not assume an existing data processing agreement covers AI training.
• Waiting for
Currently, there is no comprehensive federal or North Carolina AI statute. But that isn't a reason to push off AI adoption.
A company headquartered in
The posture of the federal and state government has shifted as well: the
Businesses should build their AI program now using accepted frameworks for AI management. Retrofitting your AI program after an incident, with outside counsel, forensic vendors and customer-retention concessions routinely costs many multiples of what it would have cost to build the program in advance.
• Focusing on Customer-Facing AI Risk and Ignoring HR Risk
The headlines always focus on chatbots and image generators. The faster moving legal exposure for
The companies getting this right are not the slowest. They are the ones with strong leadership that treat AI deployment with the same rigor they give a new product launch: clear ownership, documented testing, contracts that match the system and a paper trail that holds up to scrutiny.
Attorney


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